Critical Comparison: MusclePharm (OTCMKTS:MSLP) & Aldeyra Therapeutics (NASDAQ:ALDX)

MusclePharm (OTCMKTS:MSLPGet Rating) and Aldeyra Therapeutics (NASDAQ:ALDXGet Rating) are both small-cap consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Insider & Institutional Ownership

25.7% of MusclePharm shares are held by institutional investors. Comparatively, 62.9% of Aldeyra Therapeutics shares are held by institutional investors. 60.7% of MusclePharm shares are held by insiders. Comparatively, 6.9% of Aldeyra Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for MusclePharm and Aldeyra Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MusclePharm 0 0 0 0 N/A
Aldeyra Therapeutics 0 0 4 0 3.00

Aldeyra Therapeutics has a consensus target price of $16.75, suggesting a potential upside of 366.57%. Given Aldeyra Therapeutics’ higher possible upside, analysts plainly believe Aldeyra Therapeutics is more favorable than MusclePharm.

Earnings & Valuation

This table compares MusclePharm and Aldeyra Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MusclePharm $50.04 million 0.13 -$12.87 million ($0.58) -0.33
Aldeyra Therapeutics N/A N/A -$57.78 million ($1.11) -3.23

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

Volatility & Risk

MusclePharm has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500. Comparatively, Aldeyra Therapeutics has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500.

Profitability

This table compares MusclePharm and Aldeyra Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MusclePharm -38.51% N/A -169.56%
Aldeyra Therapeutics N/A -29.78% -26.38%

About MusclePharm (Get Rating)

MusclePharm Corporation develops, manufactures, markets, and distributes sports nutrition products and nutritional supplements in the United States and internationally. The company offers a range of performance powders, capsules, tablets, gels, and on-the-go ready to eat snacks. Its MusclePharm brand product portfolio includes combat protein powder and combat crunch protein bars; and essential supplements, such as a BCAA, creatine, glutamine, carnitine, CLA, fish oil, multi-vitamin, and other products. The company also provides FitMiss branded sports nutrition products, which are formulated primarily for the female body to support women in the areas of weight management, lean muscle mass, body composition, and general health and wellness; and functional energy beverages under the Combat Energy and FitMiss Energy brands. MusclePharm Corporation sells its products to various athletes and fitness enthusiasts. The company was incorporated in 2006 and is based in Las Vegas, Nevada.

About Aldeyra Therapeutics (Get Rating)

Aldeyra Therapeutics is a clinical-stage biotechnology company focused on the development of novel therapies with the potential to improve the lives of patients with immune-mediated diseases. Two of the company’s lead compounds, reproxalap and ADX-629, target reactive aldehyde species (RASP), which are elevated in ocular and systemic inflammatory disease, leading to elevated levels of cytokine release via activation of a broad array of inflammatory factors, including NF-κB, inflammasomes, and Scavenger Receptor A. Reproxalap is being evaluated in Phase 3 clinical trials in patients with dry eye disease and allergic conjunctivitis. The company’s clinical pipeline also includes ADX-2191, a dihydrofolate reductase inhibitor in Phase 3 testing for proliferative vitreoretinopathy, and ADX-1612, a chaperome inhibitor in Phase 2 testing for COVID-19 and ovarian cancer.

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