Anavex Life Sciences (NASDAQ:AVXL) and US Stem Cell (OTCMKTS:USRM) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for Anavex Life Sciences and US Stem Cell, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anavex Life Sciences 0 0 4 0 3.00
US Stem Cell 0 0 0 0 N/A

Anavex Life Sciences currently has a consensus target price of $7.50, suggesting a potential upside of 240.14%. Given Anavex Life Sciences’ higher possible upside, analysts plainly believe Anavex Life Sciences is more favorable than US Stem Cell.

Earnings and Valuation

This table compares Anavex Life Sciences and US Stem Cell’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Anavex Life Sciences N/A N/A -$13.46 million ($0.33) -6.68
US Stem Cell $5.52 million 1.36 -$3.48 million N/A N/A

US Stem Cell has higher revenue and earnings than Anavex Life Sciences.

Risk and Volatility

Anavex Life Sciences has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, US Stem Cell has a beta of 6.26, meaning that its share price is 526% more volatile than the S&P 500.

Profitability

This table compares Anavex Life Sciences and US Stem Cell’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Anavex Life Sciences N/A -70.18% -61.79%
US Stem Cell -21.01% N/A -66.41%

Insider & Institutional Ownership

18.1% of Anavex Life Sciences shares are held by institutional investors. 12.1% of Anavex Life Sciences shares are held by insiders. Comparatively, 16.7% of US Stem Cell shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

About Anavex Life Sciences

Anavex Life Sciences Corp., a clinical stage biopharmaceutical company, engages in the development of drug candidates for the treatment of Alzheimer's disease, other central nervous system diseases, pain, and various cancers. The company's lead drug candidates include ANAVEX 2-73, which has completed Phase IIa clinical trials for the treatment of Alzheimer's disease; and in preclinical clinical trials to treat Parkinson's disease, epilepsy, Rett syndrome, Angelman syndrome, multiple sclerosis, and Fragile X syndrome. Its preclinical drug candidates include ANAVEX 3-71 to treat Alzheimer's disease; ANAVEX 1-41, a sigma-1 agonist; ANAVEX 1037 for the treatment of prostate cancer; and ANAVEX 1066, a mixed sigma-1/sigma-2 ligand for the treatment of neuropathic and visceral pain. The company was founded in 2006 and is based in New York, New York.

About US Stem Cell

U.S. Stem Cell, Inc., a biotechnology company, focuses on the discovery, development, and commercialization of autologous cellular therapies for the treatment of chronic and acute heart damage, and vascular and autoimmune diseases in the United States. Its lead product candidates include MyoCell, a clinical therapy designed to populate regions of scar tissue within a patient's heart with autologous muscle cells or cells from a patient's body for enhancing cardiac function in chronic heart failure patients; and AdipoCell, a patient-derived cell therapy for the treatment of acute myocardial infarction, chronic heart ischemia, and lower limb ischemia. The company's product development pipeline includes MyoCell SDF-1, an autologous muscle-derived cellular therapy for improving cardiac function in chronic heart failure patients. It is also developing MyoCath, a deflecting tip needle injection catheter that is used to inject cells into cardiac tissue in therapeutic procedures to treat chronic heart ischemia and congestive heart failure. In addition, the company provides physician and patient based regenerative medicine/cell therapy training services, cell collection, and cell storage services; and cell collection and treatment kits for humans and animals, as well operates a cell therapy clinic. The company was formerly known as Bioheart, Inc. and changed its name to U.S. Stem Cell, Inc. in October 2015. U.S. Stem Cell, Inc. was founded in 1999 and is headquartered in Sunrise, Florida.

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