Reviewing Shineco (NASDAQ:SISI) and Redhill Biopharma (NASDAQ:RDHL)

Shineco (NASDAQ:SISI) and Redhill Biopharma (NASDAQ:RDHL) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

4.1% of Shineco shares are held by institutional investors. Comparatively, 7.2% of Redhill Biopharma shares are held by institutional investors. 0.0% of Shineco shares are held by company insiders. Comparatively, 6.8% of Redhill Biopharma shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shineco	$9.60 million	0.01	-$22.45 million	($204.00)	0.00
Redhill Biopharma	$9.55 million	0.40	-$8.27 million	$486.75	0.00

Redhill Biopharma has lower revenue, but higher earnings than Shineco. Shineco 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 Shineco and Redhill Biopharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shineco	-380.55%	-79.89%	-33.01%
Redhill Biopharma	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for Shineco and Redhill Biopharma, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shineco	1	0	0	0	1.00
Redhill Biopharma	1	0	0	0	1.00

Volatility and Risk

Shineco has a beta of -0.91, indicating that its stock price is 191% less volatile than the S&P 500. Comparatively, Redhill Biopharma has a beta of 4.56, indicating that its stock price is 356% more volatile than the S&P 500.

Summary

Redhill Biopharma beats Shineco on 10 of the 11 factors compared between the two stocks.

About Shineco

Shineco, Inc., through its subsidiaries, processes and distributes agricultural produce. It also engages in the growing and cultivation of mulberry trees and silkworm cocoons; distribution of fruit business; and processing and distribution of silk and silk fabrics, as well as other by-products. The company was incorporated in 1997 and is headquartered in Beijing, the People's Republic of China.

About Redhill Biopharma

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.