Comparing Lexeo Therapeutics (NASDAQ:LXEO) & Cumberland Pharmaceuticals (NASDAQ:CPIX)

Lexeo Therapeutics (NASDAQ:LXEO) and Cumberland Pharmaceuticals (NASDAQ:CPIX) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Valuation & Earnings

This table compares Lexeo Therapeutics and Cumberland Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lexeo Therapeutics	N/A	N/A	-$98.33 million	($3.26)	-1.59
Cumberland Pharmaceuticals	$37.87 million	1.36	-$6.48 million	($0.22)	-15.64

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

Volatility & Risk

Lexeo Therapeutics has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, Cumberland Pharmaceuticals has a beta of -0.37, indicating that its share price is 137% less volatile than the S&P 500.

Profitability

This table compares Lexeo Therapeutics and Cumberland Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lexeo Therapeutics	N/A	-94.65%	-73.36%
Cumberland Pharmaceuticals	-6.97%	7.48%	2.66%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Lexeo Therapeutics and Cumberland Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lexeo Therapeutics	0	0	6	0	3.00
Cumberland Pharmaceuticals	0	0	0	0	0.00

Lexeo Therapeutics currently has a consensus target price of $15.33, indicating a potential upside of 196.01%. Given Lexeo Therapeutics’ stronger consensus rating and higher possible upside, research analysts plainly believe Lexeo Therapeutics is more favorable than Cumberland Pharmaceuticals.

Institutional and Insider Ownership

60.7% of Lexeo Therapeutics shares are held by institutional investors. Comparatively, 15.5% of Cumberland Pharmaceuticals shares are held by institutional investors. 5.3% of Lexeo Therapeutics shares are held by company insiders. Comparatively, 44.9% of Cumberland Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Lexeo Therapeutics beats Cumberland Pharmaceuticals on 7 of the 13 factors compared between the two stocks.

About Lexeo Therapeutics

Lexeo Therapeutics, Inc. operates as a clinical stage genetic medicine company that focuses on hereditary and acquired diseases. The company develops LX2006, which is an AAVrh10-based gene therapy candidate for the treatment of Friedreich's ataxia (FA) cardiomyopathy; LX2020, an AAVrh10-based gene therapy candidate for the treatment of plakophilin-2 arrhythmogenic cardiomyopathy; LX2021, a gene therapy candidate for the treatment of DSP cardiomyopathy associated with it; and LX2022, a gene therapy candidate for the treatment of hypertrophic cardiomyopathy, or HCM caused by TNNI3 gene. It also develops LX1001, an AAVrh10-based gene therapy candidate for the treatment of APOE4 homozygous; LX1020, a gene therapy candidate for the treatment of APOE4 homozygous; LX1021 for the treatment of APOE4 homozygotes; and LX1004 for the treatment of CLN2 Batten disease. The company was incorporated in 2017 and is based in New York, New York.

About Cumberland Pharmaceuticals

Cumberland Pharmaceuticals Inc., a specialty pharmaceutical company, focuses on the acquisition, development, and commercialization of prescription products for hospital acute care, gastroenterology, and oncology in the United States and internationally. The company offers Acetadote, an injection for the treatment of acetaminophen poisoning; Caldolor, an injection for the treatment of pain and fever; Kristalose, a prescription laxative oral solution for the treatment of constipation; Omeclamox-Pak for the treatment of Helicobacter pylori infection and duodenal ulcer disease; Vaprisol, an injection for treating euvolemic and hypervolemic hyponatremia; Sancuso, an injection for the treatment of chemotherapy treatment; and Vibativ, an injection for the treatment of certain serious bacterial infections, including hospital-acquired and ventilator-associated bacterial pneumonia, as well as complicated skin and skin structure infections. It develops RediTrex injection for the treatment of active rheumatoid, juvenile idiopathic, and severe psoriatic arthritis, as well as disabling psoriasis. In addition, the company is developing ifetroban, a product candidate that is in phase II clinical trial for the treatment of aspirin-exacerbated respiratory disease, systemic sclerosis, and duchenne muscular dystrophy; and has completed phase II clinical trial for the treatment of hepatorenal syndrome and portal hypertension. Further, it develops a clinical program for the use of ifetroban to treat progressive fibrosing interstitial lung diseases. The company was incorporated in 1999 and is headquartered in Nashville, Tennessee.