Inotiv (NASDAQ:NOTV – Get Free Report) and Summit Therapeutics (NASDAQ:SMMT – Get Free Report) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Inotiv and Summit Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Inotiv | 1 | 0 | 1 | 0 | 2.00 |
| Summit Therapeutics | 2 | 5 | 9 | 2 | 2.61 |
Inotiv presently has a consensus target price of $1.50, suggesting a potential upside of 441.52%. Summit Therapeutics has a consensus target price of $31.00, suggesting a potential upside of 23.26%. Given Inotiv’s higher possible upside, equities analysts clearly believe Inotiv is more favorable than Summit Therapeutics.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Inotiv | $513.02 million | 0.02 | -$68.62 million | ($2.03) | -0.14 |
| Summit Therapeutics | N/A | N/A | -$1.08 billion | ($1.45) | -17.34 |
Inotiv has higher revenue and earnings than Summit Therapeutics. Summit Therapeutics is trading at a lower price-to-earnings ratio than Inotiv, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Inotiv and Summit Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Inotiv | -13.50% | -28.95% | -5.22% |
| Summit Therapeutics | N/A | -296.82% | -250.96% |
Volatility & Risk
Inotiv has a beta of 4.07, indicating that its share price is 307% more volatile than the S&P 500. Comparatively, Summit Therapeutics has a beta of -1.36, indicating that its share price is 236% less volatile than the S&P 500.
Insider & Institutional Ownership
18.2% of Inotiv shares are held by institutional investors. Comparatively, 4.6% of Summit Therapeutics shares are held by institutional investors. 7.8% of Inotiv shares are held by insiders. Comparatively, 84.9% of Summit Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Inotiv beats Summit Therapeutics on 8 of the 14 factors compared between the two stocks.
About Inotiv
Inotiv, Inc. provides nonclinical and analytical drug discovery and development services to the pharmaceutical and medical device industries. It operates through two segment: Discovery and Safety Assessment (DSA), and Research Models and Services (RMS). The DMS segment manufactured scientific instruments for life sciences research and the related software for use by pharmaceutical companies, universities, government research centers, and medical research institutions under the Company's BASi product line. The RMS segment engages in commercial production and sales of research models, diets, bedding, and bioproducts. The company offers research and discovery services, including computational toxicology, disease pharmacology, DMPK, safety pharmacology, discovery bioanalysis, exploratory, surgical models and medical device, and cell and molecular biology; non-clinical safety assessment includes general and genetic toxicology, regulated bioanalysis, carcinogenicity studies, and development and reproductive toxicology; pathology services, such as histology, digital, clinical, and medical device pathology; bioanalysis includes nonregulated discovery bioanalysis, biotherapeutics, and regulated preclinical and clinical bioanalysis; proteomics; and consulting services, as well as model and research services. The company operates in the United States, the Netherlands, and internationally. The company was formerly known as Bioanalytical Systems, Inc. and changed its name to Inotiv, Inc. in March 2021. Inotiv, Inc. was incorporated in 1974 and is headquartered in West Lafayette, Indiana.
About Summit Therapeutics
Summit Therapeutics Inc., a biopharmaceutical company, focuses on discovery, development, and commercialization of patient, physician, caregiver, and societal friendly medicinal therapies in the United States, and the United Kingdom. The company’s lead development candidate is Ivonescimab, a bispecific antibody for immunotherapy through blockade of PD-1 with the anti-angiogenesis; and anti-infectives portfolio includes SMT-738, a novel class of precision antibiotics for the treatment of multidrug resistant infections, which primarily includes carbapenem-resistant Enterobacteriaceae infections. It has a collaboration and license agreement with Akeso, Inc. and its affiliates to develop and commercialize ivonescimab, as well as strategic collaboration with The University of Texas MD Anderson Cancer Center for the purpose of accelerating the development of ivonescimab. The company was founded in 2003 and is headquartered in Miami, Florida.
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