Innoviva (NASDAQ:INVA – Get Free Report) and Rafael (NYSE:RFL – Get Free Report) are both small-cap healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Insider and Institutional Ownership
99.1% of Innoviva shares are owned by institutional investors. Comparatively, 11.3% of Rafael shares are owned by institutional investors. 2.0% of Innoviva shares are owned by insiders. Comparatively, 32.9% of Rafael shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Innoviva and Rafael, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Innoviva | 0 | 2 | 4 | 0 | 2.67 |
| Rafael | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares Innoviva and Rafael’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Innoviva | 81.19% | 28.03% | 20.19% |
| Rafael | -3,321.74% | -41.27% | -35.32% |
Risk & Volatility
Innoviva has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, Rafael has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.
Valuation and Earnings
This table compares Innoviva and Rafael”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Innoviva | $411.33 million | 3.73 | $271.17 million | $4.10 | 5.17 |
| Rafael | $920,000.00 | 91.17 | -$30.52 million | ($0.68) | -2.37 |
Innoviva has higher revenue and earnings than Rafael. Rafael is trading at a lower price-to-earnings ratio than Innoviva, indicating that it is currently the more affordable of the two stocks.
Summary
Innoviva beats Rafael on 12 of the 14 factors compared between the two stocks.
About Innoviva
Innoviva, Inc. engages in the development and commercialization of pharmaceutical products in the United States and internationally. The company’s products include RELVAR/BREO ELLIPTA, a once-daily combination medicine consisting of a LABA, vilanterol (VI), an inhaled corticosteroid (ICS), and fluticasone furoate; ANORO ELLIPTA, a once-daily medicine combining a long-acting muscarinic antagonist (LAMA) and umeclidinium bromide (UMEC) with a LABA, VI; GIAPREZA (angiotensin II), a vasoconstrictor to increase blood pressure in adults with septic or other distributive shock; XERAVA (eravacycline) for the treatment of complicated intra-abdominal infections in adults; and XACDURO, a beta lactamase inhibitor for the treatment of hospital-acquired bacterial pneumonia and ventilator-associated bacterial pneumonia. Its development pipeline includes zoliflodacin, a late-stage product candidate, a potential single oral dose cure for the treatment of uncomplicated gonorrhea. Innoviva, Inc. has a strategic partnership with Sarissa Capital Management LP. It has long-acting beta2 agonist (LABA) collaboration agreement with Glaxo Group Limited to develop and commercialize once-daily products for the treatment of chronic obstructive pulmonary disease and asthma. The company was formerly known as Theravance, Inc. and changed its name to Innoviva, Inc. in January 2016. Innoviva, Inc. was incorporated in 1996 and is headquartered in Burlingame, California.
About Rafael
Rafael Holdings, Inc. primarily engages in holding interests in clinical and early-stage pharmaceutical companies, and commercial real estate assets in the United States and Israel. It operates in two segments, Healthcare and Real Estate. The company engages in the development and commercialization of therapies that exploit the metabolic differences between normal cells and cancer cells. Its lead drug candidate is CPI-613 (devimistat), currently under Phase III clinical study for the treatment of metastatic pancreatic cancer and acute myeloid leukemia. The company is also involved in developing Promitil, a molecule designed for the targeted delivery of mitomycin-C in a proprietary prodrug form, completed Phase 1B clinical studies; Folate-targeted Promitil (Promi-Fol) which is aimed at local treatment (intravesical) of superficial bladder cancer; and Promi-Dox, a highly potent dual drug liposome with MLP and doxorubicin targeting a potential basket of tumors. In addition, it engages in the development of surgical and procedural devices, including orthopedic arthroscopy instrumentation. Rafael Holdings, Inc. was incorporated in 2017 and is headquartered in Newark, New Jersey.
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