InterCure (NASDAQ:INCR) versus Annexon (NASDAQ:ANNX) Critical Contrast

InterCure (NASDAQ:INCR) and Annexon (NASDAQ:ANNX) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Institutional and Insider Ownership

8.3% of InterCure shares are held by institutional investors. 19.1% of Annexon shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for InterCure and Annexon, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InterCure	0	0	0	0	N/A
Annexon	0	0	6	0	3.00

Annexon has a consensus target price of $14.43, indicating a potential upside of 203.76%. Given Annexon’s higher possible upside, analysts clearly believe Annexon is more favorable than InterCure.

Profitability

This table compares InterCure and Annexon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InterCure	N/A	N/A	N/A
Annexon	N/A	-66.54%	-53.52%

Volatility and Risk

InterCure has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500. Comparatively, Annexon has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.

Valuation and Earnings

This table compares InterCure and Annexon’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InterCure	$414.79 million	0.33	$13.36 million	$0.13	22.77
Annexon	N/A	N/A	-$134.24 million	($1.78)	-2.67

InterCure has higher revenue and earnings than Annexon. Annexon is trading at a lower price-to-earnings ratio than InterCure, indicating that it is currently the more affordable of the two stocks.

Summary

InterCure beats Annexon on 8 of the 11 factors compared between the two stocks.

About InterCure

InterCure Ltd., together with its subsidiaries, engages in the research, cultivation, production, and distribution of pharmaceutical-grade cannabis and cannabis-based products for medical use in Israel and internationally. The company offers dried cannabis inflorescences and cannabis extract mixed with oil. It also invests in biomed sector. The company was incorporated in 1994 and is headquartered in Herzliya, Israel.

About Annexon

Annexon, Inc., a clinical-stage biopharmaceutical company, discovers and develops medicines for treating inflammatory-related diseases. Its lead candidate is ANX005, an investigational full-length monoclonal antibody, which is in Phase 3 clinical trial for the treatment of patients with guillain-barré syndrome; completed Phase II clinical trial for treating Huntington's disease; and in Phase II clinical trial for the treatment of amyotrophic lateral sclerosis. The company is also developing ANX007, an antigen-binding fragment (Fab) that is in Phase 3 program for the treatment of patients with geographic atrophy; and ANX1502, a novel oral small molecule inhibitor, which is in Phase 1 clinical trials for autoimmune indications. In addition, it develops ANX009, a C1q-blocking Fab that is in Phase I clinical trial for treating patients with lupus nephritis. The company was incorporated in 2011 and is headquartered in Brisbane, California.