Opthea (NASDAQ:OPT – Get Free Report) and Anavex Life Sciences (NASDAQ:AVXL – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.
Insider & Institutional Ownership
56.0% of Opthea shares are held by institutional investors. Comparatively, 31.6% of Anavex Life Sciences shares are held by institutional investors. 3.2% of Opthea shares are held by company insiders. Comparatively, 11.6% of Anavex Life Sciences shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings for Opthea and Anavex Life Sciences, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Opthea | 0 | 0 | 2 | 0 | 3.00 |
| Anavex Life Sciences | 0 | 0 | 1 | 0 | 3.00 |
Profitability
This table compares Opthea and Anavex Life Sciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Opthea | N/A | N/A | N/A |
| Anavex Life Sciences | N/A | -30.32% | -27.87% |
Risk and Volatility
Opthea has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Anavex Life Sciences has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.
Valuation & Earnings
This table compares Opthea and Anavex Life Sciences’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Opthea | $110,000.00 | 1,783.85 | -$142.52 million | N/A | N/A |
| Anavex Life Sciences | N/A | N/A | -$47.51 million | ($0.54) | -6.81 |
Anavex Life Sciences has lower revenue, but higher earnings than Opthea.
Summary
Opthea beats Anavex Life Sciences on 6 of the 9 factors compared between the two stocks.
About Opthea
Opthea Limited, a clinical stage biopharmaceutical company, engages in the development and commercialization of therapies primarily for eye disease in Australia. The company's development activities are based on the intellectual property portfolio covering Vascular Endothelial Growth Factors (VEGF) VEGF-C, VEGF-D, and VEGF Receptor-3 for the treatment of diseases associated with blood and lymphatic vessel growth, as well as vascular leakage. Its lead product candidate is Sozinibercept (OPT 302), a soluble form of vascular endothelial growth factor receptor-3 VEGFR-3, currently under Phase 3 clinical development as a novel therapy for wet age-related macular degeneration and diabetic macular edema. The company was formerly known as Circadian Technologies Limited and changed its name to Opthea Limited in December 2015. Opthea Limited was incorporated in 1984 and is based in South Yarra, Australia.
About Anavex Life Sciences
Anavex Life Sciences Corp., a clinical stage biopharmaceutical company, engages in the development of therapeutics for the treatment of central nervous system diseases. Its lead product candidate is ANAVEX 2-73 for the treatment of Alzheimer's disease and Parkinson's disease, as well as other central nervous system diseases, including rare diseases, such as Rett syndrome, a rare severe neurological monogenic disorder; and infantile spasms, Fragile X syndrome, and Angelman syndrome. The company's drug candidate also comprises ANAVEX 3-71, which is in clinical trial for the treatment of schizophrenia, frontotemporal dementia, and Alzheimer's disease. Its preclinical drug candidates include ANAVEX 1-41 for the treatment of depression, stroke, and neurogenerative disease; ANAVEX 1066 for the potential treatment of neuropathic and visceral pain; and ANAVEX 1037 to treat prostate and pancreatic cancer. The company was incorporated in 2004 and is headquartered in New York, New York.
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