Comparing Shattuck Labs (NASDAQ:STTK) & Ovid Therapeutics (NASDAQ:OVID)

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

Volatility & Risk

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

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shattuck Labs	$1.66 million	287.08	-$87.30 million	($2.05)	-4.89
Ovid Therapeutics	$390,000.00	563.87	-$52.34 million	($0.75)	-4.15

Ovid Therapeutics has lower revenue, but higher earnings 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.

Analyst Recommendations

This is a breakdown of recent ratings for Shattuck Labs and Ovid Therapeutics, as provided by MarketBeat.

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

Shattuck Labs presently has a consensus price target of $20.00, suggesting a potential upside of 99.60%. Ovid Therapeutics has a consensus price target of $9.00, suggesting a potential upside of 189.39%. Given Ovid Therapeutics’ higher probable upside, analysts plainly believe Ovid Therapeutics is more favorable than Shattuck Labs.

Institutional and Insider Ownership

58.7% of Shattuck Labs shares are held by institutional investors. Comparatively, 72.2% of Ovid Therapeutics shares are held by institutional investors. 9.5% of Shattuck Labs shares are held by company insiders. Comparatively, 12.6% of Ovid Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

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

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.

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.