Incannex Healthcare (NASDAQ:IXHL) versus Lyell Immunopharma (NASDAQ:LYEL) Critical Review

Incannex Healthcare (NASDAQ:IXHL – Get Rating) and Lyell Immunopharma (NASDAQ:LYEL – Get Rating) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Incannex Healthcare and Lyell Immunopharma, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Incannex Healthcare	0	0	0	0	N/A
Lyell Immunopharma	0	2	1	0	2.33

Lyell Immunopharma has a consensus price target of $6.67, suggesting a potential upside of 164.55%. Given Lyell Immunopharma’s higher possible upside, analysts plainly believe Lyell Immunopharma is more favorable than Incannex Healthcare.

Insider & Institutional Ownership

0.1% of Incannex Healthcare shares are held by institutional investors. Comparatively, 45.0% of Lyell Immunopharma shares are held by institutional investors. 14.6% of Incannex Healthcare shares are held by company insiders. Comparatively, 25.8% of Lyell Immunopharma shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Incannex Healthcare and Lyell Immunopharma’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Incannex Healthcare	$570,000.00	212.68	-$10.81 million	N/A	N/A
Lyell Immunopharma	$84.20 million	7.47	-$183.12 million	($0.73)	-3.45

Incannex Healthcare has higher earnings, but lower revenue than Lyell Immunopharma.

Profitability

This table compares Incannex Healthcare and Lyell Immunopharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Incannex Healthcare	N/A	N/A	N/A
Lyell Immunopharma	-216.09%	-22.02%	-19.07%

Risk and Volatility

Incannex Healthcare has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Lyell Immunopharma has a beta of -1.56, indicating that its share price is 256% less volatile than the S&P 500.

Summary

Incannex Healthcare beats Lyell Immunopharma on 6 of the 11 factors compared between the two stocks.

About Incannex Healthcare

(Get Rating)

Incannex Healthcare Limited engages in the research, development, and sale of medicinal cannabinoid and psychedelic pharmaceutical products and therapies in Australia. It offers APIRx-1801, an ultrapure tetrahydrocannabinol; APIRx-1802, an ultrapure CBD; and APIRx-1803, an ultrapure cannabigerol. The company also develops IHL-42X, which has completed Phase IIa clinical trial for obstructive sleep apnea; Psi-GAD that is in Phase IIa clinical trial for generalized anxiety disorder; MedChew Dronabinol, which has completed Phase Ia clinical trial for nausea and vomiting in chemotherapy; CanChew Plus that has completed Phase IIa clinical trial for irritable bowel syndrome; APIRx-1601, which has completed Phase IIa clinical trial for vitiligo; APIRx-1602 that has completed Phase IIa clinical trial for psoriasis; and APIRx-1603, which has completed Phase IIa clinical trial for atopic dermatitis. In addition, its product portfolio includes IHL-675A for inflammatory lung disease, IHL-675A for rheumatoid arthritis, IHL-675A for inflammatory bowel disease, and IHL-216A for traumatic brain injury/concussion, which have completed pre-clinical trials; and MedChew 1401 for pain and spasticity in multiple sclerosis, MedChew GB for post-herpatic neuralgia, MedChew-1502 for Parkinson's disease, MedChew-1503 for dementia, MedChew RL for restless legs syndrome, APIRx 1505 Flotex for chrohn's disease, CanChew RX and SuppoCan (Suppository) for inflammatory bowel disease, CheWell for addiction of cannabis, CanQuit for tobacco smoking cessation, CanQuit O for opioid addiction, APIRx-1701 for glaucoma, and APIRx-1702 for dry eye syndrome that are in pre-clinical trials. The company was formerly known as Impression Healthcare Limited and changed its name to Incannex Healthcare Limited in June 2020. Incannex Healthcare Limited was incorporated in 2001 and is based in Melbourne, Australia.

About Lyell Immunopharma

(Get Rating)

Lyell Immunopharma, Inc., a T cell reprogramming company, engages in developing T cell therapies for patients with solid tumors. The company develops therapies using technology platforms, such as Gen-R, an ex vivo genetic reprogramming technology to overcome T cell exhaustion; and Epi-R, an ex vivo epigenetic reprogramming technology to generate population of T cells with durable stemness. Its pipeline includes LYL797, a T cell product candidate for the treatment of non-small cell lung cancer and triple negative breast cancers; LYL845, that targets multiple solid tumors; and NY-ESO-1 for synovial sarcoma and other solid tumor indications. The company entered into research and development collaboration and license agreement with GlaxoSmithKline for NY-ESO-1 program. Lyell Immunopharma, Inc. was incorporated in 2018 and is headquartered in South San Francisco, California.