INmune Bio (NASDAQ:INMB) & Ayala Pharmaceuticals (NASDAQ:AYLA) Critical Analysis

INmune Bio (NASDAQ:INMBGet Rating) and Ayala Pharmaceuticals (NASDAQ:AYLAGet Rating) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Insider and Institutional Ownership

10.8% of INmune Bio shares are owned by institutional investors. Comparatively, 54.4% of Ayala Pharmaceuticals shares are owned by institutional investors. 53.9% of INmune Bio shares are owned by insiders. Comparatively, 2.9% of Ayala Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for INmune Bio and Ayala Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
INmune Bio 0 0 2 0 3.00
Ayala Pharmaceuticals 0 0 7 0 3.00

INmune Bio currently has a consensus price target of $21.00, suggesting a potential upside of 206.57%. Ayala Pharmaceuticals has a consensus price target of $18.14, suggesting a potential upside of 508.82%. Given Ayala Pharmaceuticals’ higher probable upside, analysts plainly believe Ayala Pharmaceuticals is more favorable than INmune Bio.

Earnings & Valuation

This table compares INmune Bio and Ayala Pharmaceuticals’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
INmune Bio $180,000.00 679.79 -$30.34 million ($1.86) -3.68
Ayala Pharmaceuticals $3.51 million 11.95 -$40.25 million ($2.83) -1.05

INmune Bio has higher earnings, but lower revenue than Ayala Pharmaceuticals. INmune Bio is trading at a lower price-to-earnings ratio than Ayala Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares INmune Bio and Ayala Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
INmune Bio N/A -44.09% -36.31%
Ayala Pharmaceuticals -1,148.15% -95.09% -82.75%

Risk & Volatility

INmune Bio has a beta of 2.55, suggesting that its share price is 155% more volatile than the S&P 500. Comparatively, Ayala Pharmaceuticals has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Summary

INmune Bio beats Ayala Pharmaceuticals on 8 of the 12 factors compared between the two stocks.

About INmune Bio (Get Rating)

INmune Bio, Inc., a clinical-stage immunotherapy company, focuses on developing drugs to reprogram the patient's innate immune system to treat disease. The company develops and commercializes product candidates to treat hematologic malignancies, solid tumors, and chronic inflammation. Its development programs include INKmune, which focuses on treating women with relapse refractory ovarian carcinoma and patients with high-risk myelodysplastic syndrome; INB03, an immunotherapy that treats patients with hematologic malignancies and solid tumors; and XPro1595 for the treatment of Alzheimer's disease. The company has license agreements with Xencor, Inc.; Immune Ventures, LLC; University of Pittsburg; and University College London. INmune Bio, Inc. was incorporated in 2015 and is headquartered in Boca Raton, Florida.

About Ayala Pharmaceuticals (Get Rating)

Ayala Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on developing and commercializing small molecule therapeutics for patients suffering from rare and aggressive cancers. The company's lead product candidate is AL101, which is an intravenous injectable small molecule gamma secretase inhibitor (GSI) that is in Phase II clinical trial for the treatment of recurrent/metastatic adenoid cystic carcinoma for patients bearing Notch-activating mutations. It is also involved in developing AL102, an oral injectable small molecule GSI that is in Phase I clinical trial for the treatment of desmoid tumors. Ayala Pharmaceuticals, Inc. has a collaboration agreement with Novartis International Pharmaceutical Limited to develop AL102 for the treatment of multiple myeloma. The company was incorporated in 2017 and is headquartered in Rehovot, Israel.

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