COMPASS Pathways (NASDAQ:CMPS – Get Free Report) and InnovAge (NASDAQ:INNV – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitability.
Profitability
This table compares COMPASS Pathways and InnovAge’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| COMPASS Pathways | N/A | -87.89% | -57.77% |
| InnovAge | -3.75% | -11.91% | -5.85% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for COMPASS Pathways and InnovAge, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| COMPASS Pathways | 0 | 1 | 6 | 0 | 2.86 |
| InnovAge | 1 | 1 | 0 | 0 | 1.50 |
Insider & Institutional Ownership
46.2% of COMPASS Pathways shares are held by institutional investors. Comparatively, 12.3% of InnovAge shares are held by institutional investors. 3.9% of COMPASS Pathways shares are held by insiders. Comparatively, 1.4% of InnovAge shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
COMPASS Pathways has a beta of 2.17, indicating that its share price is 117% more volatile than the S&P 500. Comparatively, InnovAge has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.
Earnings and Valuation
This table compares COMPASS Pathways and InnovAge”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| COMPASS Pathways | N/A | N/A | -$155.12 million | ($1.99) | -2.18 |
| InnovAge | $763.85 million | 0.55 | -$21.34 million | ($0.23) | -13.61 |
InnovAge has higher revenue and earnings than COMPASS Pathways. InnovAge is trading at a lower price-to-earnings ratio than COMPASS Pathways, indicating that it is currently the more affordable of the two stocks.
Summary
COMPASS Pathways beats InnovAge on 8 of the 13 factors compared between the two stocks.
About COMPASS Pathways
COMPASS Pathways plc operates as a mental health care company in the United Kingdom and the United States. It develops COMP360, a psilocybin therapy that is in Phase III clinical trials for the treatment of treatment-resistant depression; and is in Phase II clinical trials for the treatment of post-traumatic stress disorder and anorexia nervosa. The company was formerly known as COMPASS Rx Limited and changed its name to COMPASS Pathways plc in August 2020. COMPASS Pathways plc was incorporated in 2020 and is headquartered in London, the United Kingdom.
About InnovAge
InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in its homes and communities. The company manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. It also offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. The company serves participants in the United States; and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, Florida, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.
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