InMed Pharmaceuticals (NASDAQ:INM – Get Free Report) and Aquestive Therapeutics (NASDAQ:AQST – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.
Risk and Volatility
InMed Pharmaceuticals has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500. Comparatively, Aquestive Therapeutics has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500.
Profitability
This table compares InMed Pharmaceuticals and Aquestive Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| InMed Pharmaceuticals | -171.13% | -85.91% | -70.29% |
| Aquestive Therapeutics | -158.95% | N/A | -59.86% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| InMed Pharmaceuticals | $4.94 million | 0.81 | -$8.16 million | ($6.02) | -0.24 |
| Aquestive Therapeutics | $57.56 million | 13.16 | -$44.14 million | ($0.71) | -8.75 |
InMed Pharmaceuticals has higher earnings, but lower revenue than Aquestive Therapeutics. Aquestive Therapeutics is trading at a lower price-to-earnings ratio than InMed Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings for InMed Pharmaceuticals and Aquestive Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| InMed Pharmaceuticals | 1 | 0 | 0 | 0 | 1.00 |
| Aquestive Therapeutics | 1 | 0 | 8 | 2 | 3.00 |
Aquestive Therapeutics has a consensus target price of $10.00, suggesting a potential upside of 61.03%. Given Aquestive Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Aquestive Therapeutics is more favorable than InMed Pharmaceuticals.
Institutional & Insider Ownership
20.1% of InMed Pharmaceuticals shares are held by institutional investors. Comparatively, 32.5% of Aquestive Therapeutics shares are held by institutional investors. 0.9% of InMed Pharmaceuticals shares are held by insiders. Comparatively, 7.9% of Aquestive Therapeutics shares are held by 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.
Summary
Aquestive Therapeutics beats InMed Pharmaceuticals on 13 of the 15 factors compared between the two stocks.
About InMed Pharmaceuticals
InMed Pharmaceuticals Inc., a clinical stage pharmaceutical company, develops a pipeline of prescription-based products. The company operates through two segments, the InMed and the BayMedica. The InMed segment researches and develops cannabinoid-based pharmaceuticals products. The BayMedica segment develops proprietary manufacturing technologies to produce and sell rare cannabinoids for the health and wellness industry. Its prescription-based products include rare cannabinoids and novel cannabinoid analogs for the treatment of diseases with high unmet medical needs. The company’s lead product is INM-755, a cannabinol topical skin cream, completed Phase 2 clinical trial for the treatment of epidermolysis bullosa. It also develops INM-088, which is in preclinical studies for the treatment of glaucoma; and INM-900 for neurodegenerative diseases. In addition, the company offers IntegraSyn, an integrated biosynthesis-based manufacturing approach, for pharmaceutical-grade cannabinoids; and cannabichromene, cannabicitran, cannabidivarin, and tetrahydrocannabivarin. The company was formerly known as Cannabis Technologies Inc. and changed its name to InMed Pharmaceuticals Inc. in October 2014. InMed Pharmaceuticals Inc. was incorporated in 1981 and is headquartered in Vancouver, Canada.
About Aquestive Therapeutics
Aquestive Therapeutics, Inc. operates as a pharmaceutical company in the United States and internationally. The company markets Sympazan, an oral soluble film formulation of clobazam for the treatment of lennox-gastaut syndrome; Suboxone, a sublingual film formulation of buprenorphine and naloxone for the treatment of opioid dependence; Zuplenz, an oral soluble film formulation of ondansetron for the treatment of nausea and vomiting associated with chemotherapy and post-operative recovery; and Azstarys, a once-daily product for the treatment of attention deficit hyperactivity disorder. Its proprietary product candidates comprise Libervant, a buccal soluble film formulation of diazepam for the treatment of seizures; KYNMOBI, a sublingual film formulation of apomorphine for the treatment of episodic off-periods in Parkinson's disease; and Exservan, an oral soluble film formulation of riluzole for the treatment of amyotrophic lateral sclerosis. The company's proprietary pipeline of complex molecule product includes AQST-108, a sublingual film formulation delivering systemic epinephrine for the treatment of conditions other than anaphylaxis; and Anaphylm, an epinephrine sublingual film for the emergency treatment of allergic reactions, including anaphylaxis. In addition, it develops Adrenaverse, an epinephrine prodrug platform. The company was incorporated in 2004 and is headquartered in Warren, New Jersey.
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