Head-To-Head Survey: Scilex (SCLX) & The Competition

Scilex (NASDAQ:SCLX) is one of 283 public companies in the “Biological products, except diagnostic” industry, but how does it compare to its rivals? We will compare Scilex to similar businesses based on the strength of its analyst recommendations, profitability, risk, institutional ownership, earnings, dividends and valuation.

Insider and Institutional Ownership

69.7% of Scilex shares are held by institutional investors. Comparatively, 49.8% of shares of all “Biological products, except diagnostic” companies are held by institutional investors. 8.7% of Scilex shares are held by company insiders. Comparatively, 16.4% of shares of all “Biological products, except diagnostic” companies 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 breakdown of current ratings and recommmendations for Scilex and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scilex	0	0	2	0	3.00
Scilex Competitors	1421	4507	11751	206	2.60

Scilex currently has a consensus target price of $8.00, suggesting a potential upside of 525.00%. As a group, “Biological products, except diagnostic” companies have a potential upside of 117.75%. Given Scilex’s stronger consensus rating and higher possible upside, research analysts plainly believe Scilex is more favorable than its rivals.

Valuation and Earnings

This table compares Scilex and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Scilex	$46.74 million	-$114.33 million	-0.99
Scilex Competitors	$567.63 million	-$27.14 million	6.95

Scilex’s rivals have higher revenue and earnings than Scilex. Scilex is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Scilex and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scilex	-244.60%	N/A	-112.17%
Scilex Competitors	-4,628.84%	-232.63%	-46.05%

Volatility and Risk

Scilex has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Scilex’s rivals have a beta of 1.04, indicating that their average stock price is 4% more volatile than the S&P 500.

Summary

Scilex rivals beat Scilex on 7 of the 13 factors compared.

About Scilex

Scilex Holding Company focuses on acquiring, developing, and commercializing non-opioid pain management products for the treatment of acute and chronic pain. Its commercial products include ZTlido (lidocaine topical system) 1.8% (ZTlido), a prescription lidocaine topical product for the relief of neuropathic pain associated with postherpetic neuralgia (PHN), which is a form of post-shingles nerve pain; ELYXYB, a ready-to-use oral solution for the acute treatment of migraine with or without aura in adults; and GLOPERBA, a liquid oral version of the anti-gout medicine colchicine indicated for the prophylaxis of painful gout flares in adults. The company is also developing three product candidates, including SP-102 (10 mg dexamethasone sodium phosphate viscous gel) (SEMDEXA), a novel viscous gel formulation of a used corticosteroid for epidural injections, which has completed a Phase 3 study to treat lumbosacral radicular pain or sciatica; SP-103 (lidocaine topical system) 5.4% (SP-103), a formulation of ZTlido for the treatment of chronic neck pain and low back pain (LBP) that has completed a Phase 2 trial; and SP-104 (4.5 mg low-dose naltrexone hydrochloride delayed-release capsules) (SP-104), a novel low-dose delayed-release naltrexone hydrochloride, which has completed Phase 1 trials for the treatment of fibromyalgia. The company is headquartered in Palo Alto, California.