Reviewing Elutia (NASDAQ:ELUT) and Fennec Pharmaceuticals (NASDAQ:FENC)

Elutia (NASDAQ:ELUTGet Free Report) and Fennec Pharmaceuticals (NASDAQ:FENCGet Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Valuation and Earnings

This table compares Elutia and Fennec Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Elutia $24.75 million 3.43 -$37.66 million ($2.37) -1.48
Fennec Pharmaceuticals $21.25 million 8.25 -$16.05 million $0.03 214.00

Fennec Pharmaceuticals has lower revenue, but higher earnings than Elutia. Elutia is trading at a lower price-to-earnings ratio than Fennec Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for Elutia and Fennec Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Elutia 0 0 2 0 3.00
Fennec Pharmaceuticals 0 0 3 0 3.00

Elutia presently has a consensus target price of $10.50, indicating a potential upside of 200.00%. Fennec Pharmaceuticals has a consensus target price of $16.00, indicating a potential upside of 149.22%. Given Elutia’s higher possible upside, research analysts clearly believe Elutia is more favorable than Fennec Pharmaceuticals.

Risk and Volatility

Elutia has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Fennec Pharmaceuticals has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.

Profitability

This table compares Elutia and Fennec Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Elutia -164.45% N/A -112.77%
Fennec Pharmaceuticals 6.33% -39.41% 8.46%

Insider & Institutional Ownership

74.0% of Elutia shares are owned by institutional investors. Comparatively, 55.5% of Fennec Pharmaceuticals shares are owned by institutional investors. 40.8% of Elutia shares are owned by insiders. Comparatively, 11.0% of Fennec Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Fennec Pharmaceuticals beats Elutia on 7 of the 13 factors compared between the two stocks.

About Elutia

(Get Free Report)

Elutia Inc., a commercial-stage company, develops and commercializes drug-eluting biologics products for neurostimulation, wound care, and breast reconstruction in the United States. The company operates in three segments: Device Protection; Women's Health; and Cardiovascular. It offers CanGaroo Envelope, which is used to accommodate cardiac implantable electronic devices, such as pacemakers and internal defibrillators. The company also develops CanGarooRM, a combination of the CanGaroo envelope with antibiotics, to reduce the risk of infection after surgical implantation of an electronic device. In addition, it provides ProxiCor for cardiac tissue repair and pericardial closure; Tyke, an extracellular material that is used in the repair of cardiac structures for neonate and infant patients; and VasCure, a patch material to repair or reconstruct the peripheral vasculature. Further, the company offers SimpliDerm, which uses human acellular dermal matrices for tissue repair and reconstruction in various applications, such as sports medicine, hernia repair, trauma reconstruction, and breast reconstruction surgeries following mastectomy. It serves hospitals and healthcare facilities through its direct sales force, independent sales agents, and distributors. The company was formerly known as Aziyo Biologics, Inc. and changed its name to Elutia Inc. in September 2023. Elutia Inc. was incorporated in 2015 and is headquartered in Silver Spring, Maryland.

About Fennec Pharmaceuticals

(Get Free Report)

Fennec Pharmaceuticals Inc., a biopharmaceutical company, develops product candidates for use in the treatment of cancer in the United States. Its lead product candidate is the Sodium Thiosulfate, which has completed the Phase III clinical trial for the prevention of cisplatin induced hearing loss or ototoxicity in children. The company was formerly known as Adherex Technologies Inc. and changed its name to Fennec Pharmaceuticals Inc. in September 2014. Fennec Pharmaceuticals Inc. was founded in 1996 and is based in Research Triangle Park, North Carolina.

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