Tilray Brands (NASDAQ:TLRY) versus Innoviva (NASDAQ:INVA) Head-To-Head Comparison

Tilray Brands (NASDAQ:TLRY) and Innoviva (NASDAQ:INVA) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Risk & Volatility

Tilray Brands has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500. Comparatively, Innoviva has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.

Insider and Institutional Ownership

9.3% of Tilray Brands shares are held by institutional investors. Comparatively, 99.1% of Innoviva shares are held by institutional investors. 1.6% of Tilray Brands shares are held by company insiders. Comparatively, 2.0% of Innoviva shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Tilray Brands and Innoviva, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tilray Brands	2	2	3	1	2.38
Innoviva	0	2	4	0	2.67

Tilray Brands currently has a consensus target price of $5.90, suggesting a potential upside of 80.43%. Innoviva has a consensus target price of $39.25, suggesting a potential upside of 89.25%. Given Innoviva’s stronger consensus rating and higher possible upside, analysts plainly believe Innoviva is more favorable than Tilray Brands.

Profitability

This table compares Tilray Brands and Innoviva’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tilray Brands	-16.91%	-10.39%	-7.38%
Innoviva	81.19%	28.03%	20.19%

Earnings and Valuation

This table compares Tilray Brands and Innoviva”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tilray Brands	$915.45 million	0.49	-$121.40 million	($1.40)	-2.34
Innoviva	$411.33 million	3.64	$271.17 million	$4.10	5.06

Innoviva has lower revenue, but higher earnings than Tilray Brands. Tilray Brands 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 Tilray Brands on 11 of the 14 factors compared between the two stocks.

About Tilray Brands

Tilray, Inc. engages in the research, cultivation, processing, and distribution of medical cannabis. The company offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. Tilray, Inc. is headquartered in Canada.

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.