Hoth Therapeutics (NASDAQ:HOTH – Get Free Report) and Lipella Pharmaceuticals (NASDAQ:LIPO – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Profitability
This table compares Hoth Therapeutics and Lipella Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hoth Therapeutics | N/A | -89.68% | -82.61% |
| Lipella Pharmaceuticals | -882.82% | -192.33% | -154.24% |
Insider and Institutional Ownership
7.1% of Hoth Therapeutics shares are owned by institutional investors. Comparatively, 74.3% of Lipella Pharmaceuticals shares are owned by institutional investors. 10.6% of Hoth Therapeutics shares are owned by insiders. Comparatively, 32.1% of Lipella Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hoth Therapeutics | N/A | N/A | -$7.84 million | ($1.32) | -1.03 |
| Lipella Pharmaceuticals | $450,000.00 | 7.61 | -$4.62 million | ($4.25) | -0.67 |
Lipella Pharmaceuticals has higher revenue and earnings than Hoth Therapeutics. Hoth Therapeutics is trading at a lower price-to-earnings ratio than Lipella Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Hoth Therapeutics and Lipella Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hoth Therapeutics | 0 | 0 | 3 | 1 | 3.25 |
| Lipella Pharmaceuticals | 0 | 0 | 1 | 0 | 3.00 |
Hoth Therapeutics currently has a consensus price target of $4.00, suggesting a potential upside of 194.12%. Lipella Pharmaceuticals has a consensus price target of $16.00, suggesting a potential upside of 465.37%. Given Lipella Pharmaceuticals’ higher possible upside, analysts plainly believe Lipella Pharmaceuticals is more favorable than Hoth Therapeutics.
Risk & Volatility
Hoth Therapeutics has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Lipella Pharmaceuticals has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500.
Summary
Hoth Therapeutics beats Lipella Pharmaceuticals on 8 of the 14 factors compared between the two stocks.
About Hoth Therapeutics
Hoth Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing therapies for unmet medical needs. It is involved in the development of HT-001, a topical formulation, which is in Phase II clinical trial for the treatment of patients with rash and skin disorders associated with initial and repeat courses of tyrosine kinase epidermal growth factor receptor inhibitor therapy; HT-KIT to treat mast-cell derived cancers and anaphylaxis; HT-TBI to treat traumatic brain injury and ischemic stroke; HT-ALZ for the treatment and/or prevention of Alzheimer's or other neuroinflammatory diseases; HT-004 for treatment of asthma and allergies using inhalational administration; HT-003 for the treatment of acne and psoriasis, as well as inflammatory bowel diseases; and HT-002, a novel peptide for treating COVID-19. The company is also developing BioLexa Platform, a proprietary, patented, drug compound platform which is in Phase I clinical trial for the treatment of eczema; and HT-005 for treating patients with lupus, as well as a diagnostic device through a mobile device. The company has license agreements with the George Washington University; Isoprene Pharmaceuticals, Inc.; Virginia Commonwealth University; the North Carolina State University; Chelexa BioSciences, Inc. and the University of Cincinnati; Zylö Therapeutics, Inc.; and Voltron Therapeutics, Inc. It also has a research collaboration agreement with Weill Cornell Medicine to develop HT-003. Hoth Therapeutics, Inc. was incorporated in 2017 and is based in New York, New York.
About Lipella Pharmaceuticals
Lipella Pharmaceuticals Inc., a biotechnology company, focuses on developing drugs by reformulating the active agents in existing generic drugs and optimizing these reformulations for various applications. The company develops LP-10, a formulation of tacrolimus that has completed Phase 2a clinical trial for patients with radiation-induced hemorrhagic cystitis; LP-310, a formulation of tacrolimus for the treatment of oral lichen planus; and LP-410, an oral liposomal formulation of tacrolimus for the treatment of oral graft-versus-host disease (GVHD). Lipella Pharmaceuticals Inc. was incorporated in 2005 and is headquartered in Pittsburgh, Pennsylvania.
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