Edesa Biotech (NASDAQ:EDSA) & MannKind (NASDAQ:MNKD) Head to Head Contrast

MannKind (NASDAQ:MNKD) and Edesa Biotech (NASDAQ:EDSA) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares MannKind and Edesa Biotech”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MannKind	$297.60 million	4.21	-$11.94 million	$0.10	41.20
Edesa Biotech	N/A	N/A	-$6.17 million	($1.59)	-1.23

Edesa Biotech has lower revenue, but higher earnings than MannKind. Edesa Biotech is trading at a lower price-to-earnings ratio than MannKind, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

49.5% of MannKind shares are owned by institutional investors. Comparatively, 5.5% of Edesa Biotech shares are owned by institutional investors. 2.7% of MannKind shares are owned by company insiders. Comparatively, 22.6% of Edesa Biotech shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares MannKind and Edesa Biotech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MannKind	8.07%	-17.74%	8.68%
Edesa Biotech	N/A	-233.69%	-124.14%

Risk and Volatility

MannKind has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Edesa Biotech has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for MannKind and Edesa Biotech, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MannKind	0	0	6	2	3.25
Edesa Biotech	0	0	1	0	3.00

MannKind presently has a consensus target price of $10.00, indicating a potential upside of 142.72%. Edesa Biotech has a consensus target price of $21.00, indicating a potential upside of 971.43%. Given Edesa Biotech’s higher possible upside, analysts plainly believe Edesa Biotech is more favorable than MannKind.

Summary

MannKind beats Edesa Biotech on 11 of the 14 factors compared between the two stocks.

About MannKind

MannKind Corporation, a biopharmaceutical company, focuses on the development and commercialization of inhaled therapeutic products for endocrine and orphan lung diseases in the United States. It offers Afrezza, an inhaled insulin used to improve glycemic control in adults with diabetes, and the V-Go wearable insulin delivery device, which provides continuous subcutaneous infusion of insulin in adults. The company's product pipeline also includes Tyvaso DPI (Treprostinil), an inhalation powder for the treatment of pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease; MNKD-101, a nebulized formulation of clofazimine, for the treatment of severe chronic and recurrent pulmonary infections, including nontuberculous mycobacterial lung disease; MNKD-201, a dry-powder formulation of nintedanib, for the treatment of idiopathic pulmonary fibrosis (IPF). In addition, it has collaboration and license agreement with United Therapeutics Corporation for development, regulatory, and commercial activities of Tyvaso DPI; co-promotion agreement with Vertice Pharma to promote Thyquidity; and collaboration agreement with Thirona to evaluate the therapeutic for the treatment of pulmonary fibrosis. Further, the company has supply and distribution agreement with Biomm S.A. for the commercialization of Afrezza in Brazil; and license and distribution agreement with Cipla Ltd. for the marketing and distribution of Afrezza in India. MannKind Corporation was incorporated in 1991 and is headquartered in Danbury, Connecticut.

About Edesa Biotech

Edesa Biotech, Inc., a clinical-stage biopharmaceutical company, engages in the research and development, manufacture, and commercialization of pharmaceutical products for inflammatory and immune-related diseases. Its lead product candidates are EB05, a monoclonal antibody, which is in Phase 3 clinical study for the treatment of acute respiratory distress syndrome in Covid-19 patients; and EB01, a topical vanishing cream containing non-steroidal anti-inflammatory compound that has completed Phase 2b clinical study to treat chronic allergic contact dermatitis. The company also develops EB02, an extension of secretory phospholipase 2 anti-inflammatory cream for treating erythema, swelling, and exudation associated with hemorrhoids disease; and EB06, an anti- chemokine ligand 10 (CXCL10) monoclonal antibody in vitiligo. It has a collaboration agreement with NovImmune SA to develop monoclonal antibodies targeting products containing toll-like receptor 4 and CXCL10 for therapeutic, prophylactic, and diagnostic applications in humans and animals; and Yissum Research Development Company for the development of products for therapeutic, prophylactic, and diagnostic uses in topical dermal and anorectal applications, as well as for the use in dermatologic and gastrointestinal conditions. The company was founded in 2015 and is headquartered in Markham, Canada.