Critical Contrast: Olema Pharmaceuticals (NASDAQ:OLMA) & Vallon Pharmaceuticals (NASDAQ:VLON)

Olema Pharmaceuticals (NASDAQ:OLMAGet Rating) and Vallon Pharmaceuticals (NASDAQ:VLONGet Rating) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Insider and Institutional Ownership

5.6% of Vallon Pharmaceuticals shares are held by institutional investors. 23.6% of Olema Pharmaceuticals shares are held by company insiders. Comparatively, 37.3% of Vallon Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Olema Pharmaceuticals has a beta of 2.47, suggesting that its stock price is 147% more volatile than the S&P 500. Comparatively, Vallon Pharmaceuticals has a beta of -0.51, suggesting that its stock price is 151% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Olema Pharmaceuticals and Vallon Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Olema Pharmaceuticals 0 0 2 0 3.00
Vallon Pharmaceuticals 0 0 1 0 3.00

Olema Pharmaceuticals presently has a consensus price target of $12.00, indicating a potential upside of 234.26%. Vallon Pharmaceuticals has a consensus price target of $12.00, indicating a potential upside of 2,384.47%. Given Vallon Pharmaceuticals’ higher possible upside, analysts plainly believe Vallon Pharmaceuticals is more favorable than Olema Pharmaceuticals.

Profitability

This table compares Olema Pharmaceuticals and Vallon Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Olema Pharmaceuticals N/A -27.06% -26.15%
Vallon Pharmaceuticals N/A -133.99% -103.13%

Valuation and Earnings

This table compares Olema Pharmaceuticals and Vallon Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Olema Pharmaceuticals N/A N/A -$71.10 million ($1.99) -1.80
Vallon Pharmaceuticals $100,000.00 32.89 -$9.30 million ($1.37) -0.35

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

Summary

Vallon Pharmaceuticals beats Olema Pharmaceuticals on 6 of the 10 factors compared between the two stocks.

Olema Pharmaceuticals Company Profile (Get Rating)

Olema Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of therapies for women's cancers. Its lead product candidate is OP-1250, an estrogen receptor (ER) antagonist and a selective ER degrader, which is in Phase 1/2 clinical trial for the treatment of recurrent, locally advanced, or metastatic estrogen receptor-positive, human epidermal growth factor receptor 2-negative breast cancer. The company was formerly known as CombiThera, Inc. and changed its name to Olema Pharmaceuticals, Inc. in March 2009. Olema Pharmaceuticals, Inc. was incorporated in 2006 and is headquartered in San Francisco, California.

Vallon Pharmaceuticals Company Profile (Get Rating)

Vallon Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of novel abuse-deterrent medications for central nervous system disorders. Its lead investigational product candidate is ADAIR, an abuse-deterrent oral formulation of immediate-release dextroamphetamine for the treatment of attention-deficit/hyperactivity disorder (ADHD) and narcolepsy. The company is also developing ADMIR, an abuse deterrent formulation of methylphenidate for the treatment of ADHD. Vallon Pharmaceuticals, Inc. was incorporated in 2018 and is based in Philadelphia, Pennsylvania.

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