Financial Analysis: Shattuck Labs (NASDAQ:STTK) vs. Ovid Therapeutics (NASDAQ:OVID)

Ovid Therapeutics (NASDAQ:OVID) and Shattuck Labs (NASDAQ:STTK) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for Ovid Therapeutics and Shattuck Labs, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ovid Therapeutics	0	0	3	0	3.00
Shattuck Labs	0	0	2	0	3.00

Ovid Therapeutics presently has a consensus price target of $9.00, indicating a potential upside of 178.64%. Shattuck Labs has a consensus price target of $20.00, indicating a potential upside of 108.77%. Given Ovid Therapeutics’ higher possible upside, equities analysts clearly believe Ovid Therapeutics is more favorable than Shattuck Labs.

Volatility & Risk

Ovid Therapeutics has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Shattuck Labs has a beta of 2.11, indicating that its stock price is 111% more volatile than the S&P 500.

Profitability

This table compares Ovid Therapeutics and Shattuck Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ovid Therapeutics	-13,351.53%	-49.76%	-38.16%
Shattuck Labs	-5,268.44%	-63.08%	-56.05%

Institutional and Insider Ownership

72.2% of Ovid Therapeutics shares are held by institutional investors. Comparatively, 58.7% of Shattuck Labs shares are held by institutional investors. 12.6% of Ovid Therapeutics shares are held by insiders. Comparatively, 9.9% of Shattuck Labs shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Ovid Therapeutics and Shattuck Labs’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ovid Therapeutics	$390,000.00	585.62	-$52.34 million	($0.75)	-4.31
Shattuck Labs	$1.66 million	273.95	-$87.30 million	($2.05)	-4.67

Ovid Therapeutics has higher earnings, but lower revenue than Shattuck Labs. Shattuck Labs is trading at a lower price-to-earnings ratio than Ovid Therapeutics, indicating that it is currently the more affordable of the two stocks.

Summary

Ovid Therapeutics beats Shattuck Labs on 10 of the 13 factors compared between the two stocks.

About Ovid Therapeutics

Ovid Therapeutics Inc., a biopharmaceutical company, engages in the development of impactful medicines for patients and families with epilepsies and seizure-related neurological disorders in the United States. The company is developing soticlestat, a novel cholesterol 24 hydroxylase inhibitor, which is in Phase 3 clinical trials for the potential treatment of patients with resistant epilepsies; OV329, a GABA aminotransferase inhibitor which is in Phase 1 clinical trials for the treatment of seizures associated with tuberous sclerosis complex and infantile spasms; and OV350, a small molecule direct activator of the KCC2 transporter, which is in Phase 1 clinical trials for treating epilepsies. It also develops OV815, that focuses on the mutations associated with KIF1A-associated neurological disorder (KAND); OV888 (GV101), a highly selective rock2 inhibitor which is in Phase 1 double-blind multiple-ascending dose trial; OV825, has advanced to potential candidate lead identification for the rare neurodevelopmental condition HNRNPH2 (Bain Syndrome); and OV882, a short hairpin RNA gene therapy for the treatment of Angelman syndrome. The company has license and collaboration agreements with Healx, AstraZeneca AB, H. Lundbeck A/S, Northwestern University, and Graviton, as well as Marinus Pharmaceuticals, Inc. The company was incorporated in 2014 and is headquartered in New York, New York.

About Shattuck Labs

Shattuck Labs, Inc., a clinical-stage biotechnology company, develops therapeutics for the treatment of cancer and autoimmune disease in the United States. The company's lead product candidate is SL-172154, which is in Phase 1 clinical trial for the treatment of ovarian, fallopian tube, and peritoneal cancers. Shattuck Labs, Inc. was incorporated in 2016 and is headquartered in Austin, Texas.