Evoke Pharma (NASDAQ:EVOK – Get Free Report) and Sol-Gel Technologies (NASDAQ:SLGL – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Analyst Ratings
This is a summary of recent ratings and target prices for Evoke Pharma and Sol-Gel Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Evoke Pharma | 0 | 0 | 0 | 0 | 0.00 |
| Sol-Gel Technologies | 0 | 0 | 1 | 0 | 3.00 |
Sol-Gel Technologies has a consensus target price of $40.00, indicating a potential upside of 203.70%. Given Sol-Gel Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Sol-Gel Technologies is more favorable than Evoke Pharma.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Evoke Pharma | -43.80% | -101.91% | -33.75% |
| Sol-Gel Technologies | -107.78% | -43.98% | -35.28% |
Institutional & Insider Ownership
26.2% of Sol-Gel Technologies shares are held by institutional investors. 2.3% of Evoke Pharma shares are held by insiders. Comparatively, 66.5% of Sol-Gel Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Evoke Pharma has a beta of -0.04, suggesting that its stock price is 104% less volatile than the S&P 500. Comparatively, Sol-Gel Technologies has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.
Valuation & Earnings
This table compares Evoke Pharma and Sol-Gel Technologies”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Evoke Pharma | $10.25 million | 0.83 | -$5.35 million | ($2.87) | -1.99 |
| Sol-Gel Technologies | $11.54 million | 3.18 | -$10.58 million | ($4.70) | -2.80 |
Evoke Pharma has higher earnings, but lower revenue than Sol-Gel Technologies. Sol-Gel Technologies is trading at a lower price-to-earnings ratio than Evoke Pharma, indicating that it is currently the more affordable of the two stocks.
Summary
Sol-Gel Technologies beats Evoke Pharma on 9 of the 14 factors compared between the two stocks.
About Evoke Pharma
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 offers Gimoti, a metoclopramide nasal spray to treat symptoms associated with acute and recurrent diabetic gastroparesis in adults. 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 Sol-Gel Technologies
Sol-Gel Technologies Ltd., together with its subsidiary Sol-Gel Technologies Inc., develops topical dermatological drugs for patients with severe skin conditions in Israel. The company offers Twyneo, a once-daily, non-antibiotic topical cream for the treatment of acne vulgaris; and Epsolay, a once-daily topical cream for the treatment of papulopustular (subtype II) rosacea. It also develops SGT-610 that is in Phase 3 clinical trials for the treatment of Gorlin Syndrome; and SGT-210, which has completed Phase I clinical trial, to treat rare hyperkeratinization disorders, such as Darier, PC, PPK, Olmsted, etc. In addition, the company is also involved in the development of generic topical dermatological drug products. It has collaboration with Padagis Israel Pharmaceuticals Ltd; and license agreements with Galderma Holding SA and Searchlight Pharma Inc. Sol-Gel Technologies Ltd. was incorporated in 1997 and is headquartered in Ness Ziona, Israel.
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