Critical Analysis: Liminatus Pharma (NASDAQ:LIMN) and Athira Pharma (NASDAQ:LONA)

Liminatus Pharma (NASDAQ:LIMN) and Athira Pharma (NASDAQ:LONA) are both small-cap manufacturing companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.

Profitability

This table compares Liminatus Pharma and Athira Pharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Liminatus Pharma	N/A	N/A	N/A
Athira Pharma	N/A	-107.06%	-89.89%

Institutional and Insider Ownership

57.1% of Athira Pharma shares are owned by institutional investors. 19.8% of Athira Pharma shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Liminatus Pharma and Athira Pharma, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Liminatus Pharma	1	0	0	0	1.00
Athira Pharma	1	0	1	0	2.00

Athira Pharma has a consensus price target of $10.00, suggesting a potential upside of 68.35%. Given Athira Pharma’s stronger consensus rating and higher possible upside, analysts plainly believe Athira Pharma is more favorable than Liminatus Pharma.

Valuation & Earnings

This table compares Liminatus Pharma and Athira Pharma”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Liminatus Pharma	N/A	N/A	N/A	($0.12)	-1.94
Athira Pharma	N/A	N/A	-$96.94 million	($9.68)	-0.61

Liminatus Pharma is trading at a lower price-to-earnings ratio than Athira Pharma, indicating that it is currently the more affordable of the two stocks.

Summary

Athira Pharma beats Liminatus Pharma on 5 of the 8 factors compared between the two stocks.

About Liminatus Pharma

Liminatus Pharma, Inc. is a pre-clinical-stage immuno-oncology company, which engages in developing novel, immune-modulating cancer therapies. The company was founded on November 1, 2020 and is headquartered in La Palma, CA.

About Athira Pharma

Athira Pharma, Inc., a late clinical-stage biopharmaceutical company, focuses on developing small molecules to restore neuronal health and slow neurodegradation. The company’s lead product candidate is ATH-1017, a blood brain barrier-penetrating, small molecule HGF/MET positive modulator that is in LIFT-AD Phase 3 and ACT-AD Phase 2 clinical trials for the treatment of Alzheimer’s disease, as well as is in Phase 2 clinical trials to treat Parkinson’s disease. It also develops product candidates, which are in preclinical stage, including ATH-1019 for peripheral nervous system indications; and ATH-1020 for neuropsychiatric conditions. Athira Pharma, Inc. was formerly known as M3 Biotechnology, Inc. and changed its name to Athira Pharma, Inc. in April 2019. The company was incorporated in 2011 and is headquartered in Bothell, Washington.