Evoke Pharma (NASDAQ:EVOK) versus Atea Pharmaceuticals (NASDAQ:AVIR) Financial Review

Evoke Pharma (NASDAQ:EVOKGet Rating) and Atea Pharmaceuticals (NASDAQ:AVIRGet Rating) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Volatility & Risk

Evoke Pharma has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Atea Pharmaceuticals has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.

Profitability

This table compares Evoke Pharma and Atea Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Evoke Pharma -391.75% -178.36% -68.51%
Atea Pharmaceuticals N/A 5.26% 4.97%

Institutional & Insider Ownership

2.1% of Evoke Pharma shares are held by institutional investors. Comparatively, 69.3% of Atea Pharmaceuticals shares are held by institutional investors. 10.3% of Evoke Pharma shares are held by company insiders. Comparatively, 12.8% of Atea Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Evoke Pharma and Atea Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Evoke Pharma 0 0 0 0 N/A
Atea Pharmaceuticals 1 2 0 0 1.67

Atea Pharmaceuticals has a consensus target price of $8.00, suggesting a potential upside of 71.31%. Given Atea Pharmaceuticals’ higher probable upside, analysts clearly believe Atea Pharmaceuticals is more favorable than Evoke Pharma.

Earnings & Valuation

This table compares Evoke Pharma and Atea Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Evoke Pharma $1.62 million 3.26 -$8.54 million ($2.75) -0.57
Atea Pharmaceuticals $351.37 million 1.11 $121.19 million $0.35 13.34

Atea Pharmaceuticals has higher revenue and earnings than Evoke Pharma. Evoke Pharma is trading at a lower price-to-earnings ratio than Atea Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Summary

Atea Pharmaceuticals beats Evoke Pharma on 10 of the 12 factors compared between the two stocks.

About Evoke Pharma

(Get Rating)

Evoke Pharma, Inc., a specialty pharmaceutical company, primarily focuses on the development and commercialization of drugs for the treatment of gastroenterological disorders and diseases. It is developing Gimoti, a metoclopramide nasal spray that has completed Phase 3 clinical trials to treat symptoms associated with acute and recurrent diabetic gastroparesis in females. The company markets its products to gastroenterologists, internal medicine specialists, primary care physicians, and select health care providers. Evoke Pharma, Inc. was incorporated in 2007 and is headquartered in Solana Beach, California.

About Atea Pharmaceuticals

(Get Rating)

Atea Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focused on discovering, developing, and commercializing antiviral therapeutics for patients suffering from viral infections. Its lead product candidate is AT-527, an antiviral drug candidate that is in Phase II clinical trial for the treatment of patients with COVID-19. The company also develops AT-752, an oral purine nucleoside prodrug product candidate, which has completed Phase Ia clinical trial for the treatment of dengue; AT-777, an NS5A inhibitor; AT-787, a co-formulated, oral, pan-genotypic fixed dose combination of AT-527 and AT-777 for the treatment of hepatitis C virous (HCV); and AT-281, a pharmaceutically acceptable salt for the treatment or prevention of an RNA viral infection, including dengue fever, yellow fever, Zika virus, and coronaviridae viral infection, as well as Ruzasvir, an investigational oral, pan genotypic NS5A inhibitor for the treatment of chronic HCV infection. It has a license agreement with Merck & Co, Inc. for development and commercialization of ruzasvir for the treatment of HCV. Atea Pharmaceuticals, Inc. was incorporated in 2012 and is headquartered in Boston, Massachusetts.

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