Critical Review: Indivior (NASDAQ:INDV) versus Lyell Immunopharma (NASDAQ:LYEL)

Indivior (NASDAQ:INDV) and Lyell Immunopharma (NASDAQ:LYEL) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Indivior and Lyell Immunopharma, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Indivior	0	2	5	1	2.88
Lyell Immunopharma	2	1	0	0	1.33

Indivior presently has a consensus price target of $22.00, suggesting a potential downside of 12.97%. Lyell Immunopharma has a consensus price target of $15.00, suggesting a potential downside of 18.12%. Given Indivior’s stronger consensus rating and higher possible upside, equities analysts plainly believe Indivior is more favorable than Lyell Immunopharma.

Valuation and Earnings

This table compares Indivior and Lyell Immunopharma”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Indivior	$1.19 billion	N/A	$2.00 million	$0.62	40.77
Lyell Immunopharma	$60,000.00	5,865.76	-$342.99 million	($24.29)	-0.75

Indivior has higher revenue and earnings than Lyell Immunopharma. Lyell Immunopharma is trading at a lower price-to-earnings ratio than Indivior, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

60.3% of Indivior shares are held by institutional investors. Comparatively, 66.1% of Lyell Immunopharma shares are held by institutional investors. 22.3% of Lyell Immunopharma shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Indivior has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Lyell Immunopharma has a beta of -0.07, indicating that its share price is 107% less volatile than the S&P 500.

Profitability

This table compares Indivior and Lyell Immunopharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Indivior	6.65%	-86.28%	16.26%
Lyell Immunopharma	-552,328.31%	-85.58%	-68.85%

Summary

Indivior beats Lyell Immunopharma on 11 of the 14 factors compared between the two stocks.

About Indivior

Indivior PLC, together with its subsidiaries, engages in the development, manufacture, and sale of buprenorphine-based prescription drugs for the treatment of opioid dependence and co-occurring disorders in the United States, the United Kingdom, and internationally. The company develops medicines to treat substance use disorders, serious mental illnesses, and opioid overdose. Its core marketed products include SUBLOCADE and SUBUTEX PRO buprenorphine extended-release monthly injections; SUBOXONE, a buprenorphine and naloxone sublingual film; SUBOXONE, a buprenorphine and naloxone sublingual tablet; and SUBUTEX, a buprenorphine sublingual tablet for the treatment of opioid use disorder. The company also offers OPVEE nasal spray for opioid overdose reversal; and PERSERIS extended-release injectable suspension for the treatment of schizophrenia in adults. In addition, it is developing INDV-2000, a selective orexin-1 receptor antagonist that completed phase 1 clinical trial for the treatment of opioid use disorder (OUD); INDV-1000, a selective GABAb positive allosteric modulator, which is in pre-clinical development phase for the treatment of alcohol use disorder in collaboration with ADDEX therapeutics; INDV-6001, a buprenorphine-based long-acting injectable for the treatment of OUD in collaboration with Alar Pharmaceuticals Inc.; and CT-102, a digital therapeutic for the treatment of OUD in collaboration with Click Therapeutics. Further, the company is developing INDV-5004, a drinabant injection to treat acute cannabinoid overdose. It has a strategic partnership with Aelis Farma to develop AEF0117, a synthetic CB1 specific signaling inhibitor that is in phase 2B clinical trial for the treatment of cannabis use disorder. The company was incorporated in 2014 and is headquartered in North Chesterfield, Virginia.

About Lyell Immunopharma

Lyell Immunopharma, Inc., a clinical-stage cell therapy company, develops T cell reprogramming technologies for patients with solid tumors. The company develops therapies using an ex vivo genetic reprogramming technologies, such as c Jun overexpression and NR4A3 gene knockout, to endow resistance to T cell exhaustion; and an ex vivo epigenetic reprogramming technologies, including Epi R to generate population of T cells with durable stemness, and Stim R, a proprietary synthetic cell mimetic. It is also developing LYL797, a genetically and epigenetically reprogrammed ROR1 chimeric antigen receptor (CAR) T cell product candidate that is in Phase 1 clinical trial for the treatment of various solid tumors; and LYL845, a novel epigenetically reprogrammed tumor-infiltrating lymphocytes product candidate, which is in Phase 1 clinical trial targeting multiple solid tumor indications. In addition, the company's preclinical product candidates include LYL119, a ROR1 CAR T-cell product for the treatment of enhanced cytotoxicity; and second generation TIL product. Lyell Immunopharma, Inc. was incorporated in 2018 and is headquartered in South San Francisco, California.