Head to Head Comparison: Anebulo Pharmaceuticals (NASDAQ:ANEB) & Stoke Therapeutics (NASDAQ:STOK)

Stoke Therapeutics (NASDAQ:STOK) and Anebulo Pharmaceuticals (NASDAQ:ANEB) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

28.4% of Anebulo Pharmaceuticals shares are owned by institutional investors. 9.5% of Stoke Therapeutics shares are owned by company insiders. Comparatively, 80.6% of Anebulo Pharmaceuticals shares are owned by company 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.

Volatility and Risk

Stoke Therapeutics has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Anebulo Pharmaceuticals has a beta of -0.87, meaning that its share price is 187% less volatile than the S&P 500.

Profitability

This table compares Stoke Therapeutics and Anebulo Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stoke Therapeutics	19.73%	13.28%	11.40%
Anebulo Pharmaceuticals	N/A	-67.78%	-64.08%

Earnings and Valuation

This table compares Stoke Therapeutics and Anebulo Pharmaceuticals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stoke Therapeutics	$36.56 million	49.78	-$88.98 million	$0.67	47.55
Anebulo Pharmaceuticals	N/A	N/A	-$8.48 million	($0.23)	-5.17

Anebulo Pharmaceuticals has lower revenue, but higher earnings than Stoke Therapeutics. Anebulo Pharmaceuticals is trading at a lower price-to-earnings ratio than Stoke Therapeutics, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Stoke Therapeutics and Anebulo Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stoke Therapeutics	0	2	6	2	3.00
Anebulo Pharmaceuticals	1	1	0	0	1.50

Stoke Therapeutics presently has a consensus price target of $34.78, indicating a potential upside of 9.16%. Anebulo Pharmaceuticals has a consensus price target of $3.00, indicating a potential upside of 152.10%. Given Anebulo Pharmaceuticals’ higher possible upside, analysts plainly believe Anebulo Pharmaceuticals is more favorable than Stoke Therapeutics.

Summary

Stoke Therapeutics beats Anebulo Pharmaceuticals on 10 of the 14 factors compared between the two stocks.

About Stoke Therapeutics

Stoke Therapeutics, Inc., an early-stage biopharmaceutical company, develops medicines to treat the underlying causes of severe genetic diseases in the United States. The company utilizes its proprietary targeted augmentation of nuclear gene output to develop antisense oligonucleotides to selectively restore protein levels. Its lead clinical candidate is STK-002, which is in preclinical stage for the treatment of autosomal dominant optic atrophy. The company also develops STK-001, which is in phase I/II clinical trial to treat Dravet syndrome; and programs focused on multiple targets, including haploinsufficiency diseases of the central nervous system and eye. The company has a license and collaboration agreement with Acadia Pharmaceuticals Inc. for the discovery, development, and commercialization of novel RNA-based medicines for the treatment of severe and rare genetic neurodevelopmental diseases of the central nervous system. The company was formerly known as ASOthera Pharmaceuticals, Inc. and changed its name to Stoke Therapeutics, Inc. in May 2016. Stoke Therapeutics, Inc. was incorporated in 2014 and is headquartered in Bedford, Massachusetts.

About Anebulo Pharmaceuticals

Anebulo Pharmaceuticals, Inc., a clinical-stage biotechnology company, engages in developing solutions for people suffering from acute cannabinoid intoxication (ACI) and substance addiction. The company's lead product candidate is ANEB-001, a small molecule cannabinoid receptor antagonist, which is in a Phase II clinical trial to address the unmet medical need for a specific antidote for ACI. Anebulo Pharmaceuticals, Inc. was incorporated in 2020 and is based in Lakeway, Texas.