Verona Pharma (NASDAQ:VRNA – Get Free Report) and Addex Therapeutics (NASDAQ:ADXN – Get Free Report) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.
Risk and Volatility
Verona Pharma has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, Addex Therapeutics has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500.
Earnings & Valuation
This table compares Verona Pharma and Addex Therapeutics”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Verona Pharma | $5.62 million | 660.80 | -$54.37 million | ($1.92) | -24.06 |
| Addex Therapeutics | $556,045.00 | 15.42 | -$11.76 million | ($0.34) | -23.79 |
Profitability
This table compares Verona Pharma and Addex Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Verona Pharma | N/A | -79.54% | -43.49% |
| Addex Therapeutics | 850.30% | -112.43% | -77.95% |
Insider and Institutional Ownership
85.9% of Verona Pharma shares are held by institutional investors. Comparatively, 16.1% of Addex Therapeutics shares are held by institutional investors. 4.8% of Verona Pharma shares are held by insiders. Comparatively, 15.0% of Addex Therapeutics 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.
Analyst Ratings
This is a breakdown of recent recommendations for Verona Pharma and Addex Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Verona Pharma | 0 | 0 | 6 | 0 | 3.00 |
| Addex Therapeutics | 0 | 0 | 1 | 0 | 3.00 |
Verona Pharma presently has a consensus target price of $47.67, indicating a potential upside of 3.17%. Addex Therapeutics has a consensus target price of $30.00, indicating a potential upside of 270.83%. Given Addex Therapeutics’ higher possible upside, analysts clearly believe Addex Therapeutics is more favorable than Verona Pharma.
Summary
Addex Therapeutics beats Verona Pharma on 7 of the 13 factors compared between the two stocks.
About Verona Pharma
Verona Pharma plc, a clinical stage biopharmaceutical company, focuses on development and commercialization of therapies for the treatment of respiratory diseases with unmet medical needs. The company's product candidate is ensifentrine, an inhaled and dual inhibitor of the phosphodiesterase (PDE) 3 and PDE4 enzymes that acts as both a bronchodilator and an anti-inflammatory agent in a single compound, which is in Phase 3 clinical trials for the treatment of chronic obstructive pulmonary disease, asthma, and cystic fibrosis. It is developing ensifentrine in three formulations, including nebulizer, dry powder inhaler, and pressurized metered-dose inhaler. The company was incorporated in 2005 and is headquartered in London, the United Kingdom.
About Addex Therapeutics
Addex Therapeutics Ltd discovers, develops, and commercializes small-molecule pharmaceutical products for central nervous system (CNS) disorders in Switzerland. The company focuses on the discovery of G-protein coupled receptors and enzymes. Its lead programs include Dipraglurant for the treatment of Parkinson's disease levodopa-induced dyskinesia and dystonia, and post-stroke/TBI recovery; ADX71149, a novel orally active metabotropic glutamate receptor subtype 2 positive allosteric modulator (mGlu2 PAM) for the treatment of epilepsy; and GABAB PAM for the treatment of pain, anxiety, overactive bladder, and addiction, as well as substance use disorder. Addex Therapeutics Ltd has license and collaboration agreement with Janssen Pharmaceuticals Inc. for the discovery, development, and commercialization of novel mGlu2 PAM compounds for the treatment of CNS and related diseases; license and research agreement with Indivior PLC discovery, development, and commercialization of novel GABAB PAM compounds for the treatment of addiction and other CNS diseases; and The CharcotMarieTooth Association to evaluate the role of GABAB PAM compounds in preclinical models of CMT1A. The company was formerly known as Addex Pharmaceuticals Ltd. Addex Therapeutics Ltd was founded in 2002 and is based in Geneva, Switzerland.
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