Decibel Therapeutics (NASDAQ:DBTX) and Clever Leaves (NASDAQ:CLVR) Critical Analysis

Decibel Therapeutics (NASDAQ:DBTXGet Rating) and Clever Leaves (NASDAQ:CLVRGet Rating) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Volatility & Risk

Decibel Therapeutics has a beta of -1.48, indicating that its stock price is 248% less volatile than the S&P 500. Comparatively, Clever Leaves has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Profitability

This table compares Decibel Therapeutics and Clever Leaves’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Decibel Therapeutics N/A -37.06% -29.69%
Clever Leaves -280.95% -50.18% -30.22%

Institutional & Insider Ownership

64.0% of Decibel Therapeutics shares are held by institutional investors. Comparatively, 31.7% of Clever Leaves shares are held by institutional investors. 8.8% of Clever Leaves shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Decibel Therapeutics and Clever Leaves, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Decibel Therapeutics 0 0 7 0 3.00
Clever Leaves 0 1 3 0 2.75

Decibel Therapeutics currently has a consensus price target of $18.43, suggesting a potential upside of 314.13%. Clever Leaves has a consensus price target of $5.00, suggesting a potential upside of 390.20%. Given Clever Leaves’ higher probable upside, analysts clearly believe Clever Leaves is more favorable than Decibel Therapeutics.

Valuation and Earnings

This table compares Decibel Therapeutics and Clever Leaves’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Decibel Therapeutics N/A N/A -$51.82 million ($2.18) -2.04
Clever Leaves $15.37 million 2.00 -$45.73 million ($1.80) -0.57

Clever Leaves has higher revenue and earnings than Decibel Therapeutics. Decibel Therapeutics is trading at a lower price-to-earnings ratio than Clever Leaves, indicating that it is currently the more affordable of the two stocks.

Summary

Clever Leaves beats Decibel Therapeutics on 7 of the 13 factors compared between the two stocks.

About Decibel Therapeutics

(Get Rating)

Decibel Therapeutics, Inc., a clinical-stage biotechnology company, engages in discovering and developing transformative treatments for hearing and balance disorders. Its product candidates and programs focuses on three areas, such as Gene Therapies for Congenital, Monogenic Hearing Loss designed to restore functional cells within the cochlea to address hearing disorders caused by single gene mutations; Gene Therapies for Hair Cell Regeneration designed to replace lost hair cells within the inner ear to address acquired hearing loss and balance disorders; and Otoprotection Therapeutic in clinical development to prevent hearing loss in cancer patients undergoing chemotherapy with cisplatin. The company's lead gene therapy product candidate is DB-OTO to provide hearing to individuals born with profound hearing loss due to mutation of the otoferlin gene. It is also developing DB-ATO and AAV.201, a gene therapy program designed to restore balance in patients with bilateral vestibulopathy by regenerating lost hair cells within the vestibule; DB-020 for the prevention of cisplatin-induced hearing loss, which is in Phase 1b clinical trial; AAV.103 to restore hearing in individuals with a gap junction beta-2 (GJB2) deficiency; AAV.104 to restore hearing in individuals with stereocilin (STRC) deficiency; and cochlear hair cell regeneration program, an AAV-based gene therapy that utilizes cell-selective expression of reprogramming factors to convert supporting cells into outer hair cells. Decibel Therapeutics, Inc. has a strategic collaboration with Regeneron Pharmaceuticals, Inc. to develop gene therapies for monogenic forms of congenital hearing loss. The company was formerly known as Hearing Inc. and changed its name to Decibel Therapeutics, Inc. in April 2014. Decibel Therapeutics, Inc. was incorporated in 2013 and is headquartered in Boston, Massachusetts.

About Clever Leaves

(Get Rating)

Clever Leaves Holdings Inc. operates as a cannabis company. The company operates through two segments, Cannabinoid and Non-Cannabinoid. The Cannabinoid segment engages in the cultivation, extraction, manufacturing, commercialization, and distribution of cannabinoid products internationally. The Non-Cannabinoid segment is engaged in formulating, manufacturing, marketing, selling, distributing, and commercializing nutraceutical and other natural remedies, wellness products, detoxification products, and nutritional and dietary supplements for mass retailers, specialty and health retailers, and distributors in the United States. The company was founded in 2017 and is based in Boca Raton, Florida.

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