Critical Survey: IDEAYA Biosciences (NASDAQ:IDYA) & Lipella Pharmaceuticals (NASDAQ:LIPO)

IDEAYA Biosciences (NASDAQ:IDYA) and Lipella Pharmaceuticals (NASDAQ:LIPO) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Valuation & Earnings

This table compares IDEAYA Biosciences and Lipella Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IDEAYA Biosciences	$7.00 million	268.59	-$274.48 million	($3.30)	-6.59
Lipella Pharmaceuticals	$450,000.00	9.20	-$4.62 million	($4.25)	-0.80

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

Insider & Institutional Ownership

98.3% of IDEAYA Biosciences shares are owned by institutional investors. Comparatively, 74.3% of Lipella Pharmaceuticals shares are owned by institutional investors. 3.5% of IDEAYA Biosciences shares are owned by insiders. Comparatively, 32.1% of Lipella Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for IDEAYA Biosciences and Lipella Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IDEAYA Biosciences	0	2	13	1	2.94
Lipella Pharmaceuticals	0	0	1	0	3.00

IDEAYA Biosciences presently has a consensus price target of $53.58, indicating a potential upside of 146.33%. Lipella Pharmaceuticals has a consensus price target of $16.00, indicating a potential upside of 367.84%. Given Lipella Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Lipella Pharmaceuticals is more favorable than IDEAYA Biosciences.

Profitability

This table compares IDEAYA Biosciences and Lipella Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IDEAYA Biosciences	N/A	-27.02%	-25.93%
Lipella Pharmaceuticals	-882.82%	-192.33%	-154.24%

Volatility & Risk

IDEAYA Biosciences has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Lipella Pharmaceuticals has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500.

Summary

IDEAYA Biosciences beats Lipella Pharmaceuticals on 10 of the 15 factors compared between the two stocks.

About IDEAYA Biosciences

IDEAYA Biosciences, Inc., a synthetic lethality-focused precision medicine oncology company, discovers and develops targeted therapeutics for patient populations selected using molecular diagnostics in the United States. The company's products in development include IDE196, a protein kinase C inhibitor that is in Phase 2/3 clinical trials for genetically defined cancers having GNAQ or GNA11 gene mutations; IDE397, a methionine adenosyltransferase 2a inhibitor that is in Phase 1/2 clinical trials for patients with solid tumors having methylthioadenosine phosphorylase gene deletions, such as non-small cell lung, bladder, gastric, and esophageal cancers; IDE161, a poly ADP-ribose glycohydrolase inhibitor that is in Phase 1 clinical trial to treat tumors with homologous recombination deficiency (HRD), and other genetic or molecular signatures; GSK101, a Pol Theta Helicase inhibitor that is in Phase 1 clinical trial for the treatment of tumors with BRCA or other homologous recombination, and HRD mutations; and Werner Helicase inhibitors for tumors with high microsatellite instability. It offers preclinical research programs focused on pharmacological inhibition; DECIPHER dual CRISPR library for synthetic lethality target and biomarker discovery; and INQUIRE chemical library and HARMONY machine-learning engines to enhance its drug discovery platform. The company has strategic alliances with GlaxoSmithKline, Pfizer Inc., Novartis International Pharmaceuticals Ltd., Amgen Inc., Gilead Sciences, Inc., Cancer Research UK, and the University of Manchester. IDEAYA Biosciences, Inc. was incorporated in 2015 and is headquartered in South San Francisco, California.

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.