ARS Pharmaceuticals (NASDAQ:SPRY) vs. Redhill Biopharma (NASDAQ:RDHL) Critical Analysis

ARS Pharmaceuticals (NASDAQ:SPRYGet Free Report) and Redhill Biopharma (NASDAQ:RDHLGet 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 risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Institutional and Insider Ownership

68.2% of ARS Pharmaceuticals shares are owned by institutional investors. Comparatively, 7.2% of Redhill Biopharma shares are owned by institutional investors. 33.5% of ARS Pharmaceuticals shares are owned by company insiders. Comparatively, 6.8% of Redhill Biopharma shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

ARS Pharmaceuticals has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Redhill Biopharma has a beta of 4.56, suggesting that its share price is 356% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for ARS Pharmaceuticals and Redhill Biopharma, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ARS Pharmaceuticals 1 1 5 1 2.75
Redhill Biopharma 1 0 0 0 1.00

ARS Pharmaceuticals currently has a consensus target price of $31.80, suggesting a potential upside of 242.67%. Given ARS Pharmaceuticals’ stronger consensus rating and higher probable upside, equities research analysts plainly believe ARS Pharmaceuticals is more favorable than Redhill Biopharma.

Valuation and Earnings

This table compares ARS Pharmaceuticals and Redhill Biopharma”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ARS Pharmaceuticals $89.15 million 10.29 $8.00 million ($0.81) -11.46
Redhill Biopharma $9.55 million 0.39 -$8.27 million $486.75 0.00

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

Profitability

This table compares ARS Pharmaceuticals and Redhill Biopharma’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ARS Pharmaceuticals -56.06% -38.77% -23.46%
Redhill Biopharma N/A N/A N/A

Summary

ARS Pharmaceuticals beats Redhill Biopharma on 9 of the 15 factors compared between the two stocks.

About ARS Pharmaceuticals

(Get Free Report)

ARS Pharmaceuticals, Inc., a biopharmaceutical company, develops treatments for severe allergic reactions. The company is developing neffy, a needle-free and low-dose intranasal epinephrine nasal spray for the emergency treatment of Type I allergic reactions, including anaphylaxis. It serves healthcare professionals, patients, and caregivers. ARS Pharmaceuticals, Inc. was founded in 2015 and is headquartered in San Diego, California.

About Redhill Biopharma

(Get Free Report)

RedHill Biopharma Ltd., a specialty biopharmaceutical company, primarily focuses on gastrointestinal and infectious diseases. The company develops and commercializes Talicia for the treatment of H. pylori infection in adults; and Aemcolo for the treatment of travelers' diarrhea in adults. Its pipeline consists of five therapeutic candidates, which are in clinical development include opaganib for treating patients hospitalized with SARS-CoV-2 severe COVID-19 pneumonia, advanced unresectable cholangiocarcinoma, prostate cancer, and nuclear radiation protection; RHB-107 (upamostat) for treating outpatients infected with SARS-CoV-2 (COVID-19 disease) and advanced unresectable cholangiocarcinoma; RHB-104 for Crohn's disease; RHB-102 (Bekinda) for the treatment of acute gastroenteritis and gastritis, irritable bowel syndrome with diarrhea, and oncology support anti-emetic; and RHB-204 for pulmonary nontuberculous mycobacteria infections caused by mycobacterium avium complex. The company was incorporated in 2009 and is headquartered in Tel Aviv, Israel.

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