Reviewing Nkarta (NASDAQ:NKTX) & Innovus Pharmaceuticals (OTCMKTS:INNVD)

Nkarta (NASDAQ:NKTX) and Innovus Pharmaceuticals (OTCMKTS:INNVD) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Earnings & Valuation

This table compares Nkarta and Innovus Pharmaceuticals”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nkarta	N/A	N/A	-$117.50 million	($1.88)	-0.86
Innovus Pharmaceuticals	$23.99 million	0.00	-$8.28 million	($4.16)	N/A

Innovus Pharmaceuticals has higher revenue and earnings than Nkarta. Nkarta is trading at a lower price-to-earnings ratio than Innovus Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Nkarta has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Innovus Pharmaceuticals has a beta of 2.89, suggesting that its share price is 189% more volatile than the S&P 500.

Profitability

This table compares Nkarta and Innovus Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nkarta	N/A	-27.13%	-21.67%
Innovus Pharmaceuticals	-34.51%	-682.54%	-78.57%

Insider and Institutional Ownership

80.5% of Nkarta shares are owned by institutional investors. Comparatively, 10.4% of Innovus Pharmaceuticals shares are owned by institutional investors. 8.7% of Nkarta shares are owned by insiders. Comparatively, 16.4% of Innovus Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Nkarta and Innovus Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nkarta	0	0	5	2	3.29
Innovus Pharmaceuticals	0	0	0	0	0.00

Nkarta currently has a consensus price target of $15.00, indicating a potential upside of 825.93%. Given Nkarta’s stronger consensus rating and higher probable upside, equities analysts plainly believe Nkarta is more favorable than Innovus Pharmaceuticals.

Summary

Nkarta beats Innovus Pharmaceuticals on 9 of the 14 factors compared between the two stocks.

About Nkarta

Nkarta, Inc., a clinical-stage biopharmaceutical company, develops and commercializes natural killer cell therapies for cancer and autoimmune disease treatment. The company's lead product candidate is NKX019, a chimeric antigen receptor-natural killer (CAR NK) targeting the CD19 antigen that is in Phase 1 clinical trial for the treatment of relapsed/refractory (r/r) non-hodgkin lymphoma, as well as for lupus nephritis. It also develops NKX101, a CAR NK product candidate targeting cells that display NKG2D ligands, which is in Phase I clinical trial for the treatment of r/r acute myeloid leukemia or higher risk myelodysplastic syndromes, as well as for solid tumors. In addition, the company develops NKX070, targeting the CD70 tumor antigen to treat solid and liquid tumors; and NK+T cell therapy for use in the treatment of oncology, autoimmune disease, or infectious disease. It has a research collaboration agreement with CRISPR Therapeutics AG. Nkarta, Inc. was incorporated in 2015 and is based in South San Francisco, California.

About Innovus Pharmaceuticals

Innovus Pharmaceuticals, Inc., a pharmaceutical company, engages in the development, licensing, and commercialization of non-prescription medicines and consumer care products in the United States. Its products include Zestra, a proprietary blend of essential oils to enhance desire, arousal, and satisfaction in women; EjectDelay, an over-the-counter monograph compliant benzocaine gel for premature ejaculation; Sensum+, a non-medicated cream for penile sensitivity; Zestra Glide, a water-based longer lasting lubricant; Vesele, a proprietary oral supplement for promoting sexual health; and Androferti, a natural supplement to support male reproductive health and sperm quality. The company also offers Beyond Human testosterone booster, ketones, krill oil, omega 3 fish oil, Vision Formula, blood sugar, colon cleanse, green coffee extract, and growth agent; RecalMax for brain health; UriVarx, a supplement for overactive bladder and urinary incontinence; PEVarx, a supplement for peak sexual performance; ProstaGorx, a supplement for prostate support; and FlutiCare, a nasal spray. In addition, its products include Apeaz for pain relief; AllerVarx for allergy relief; ArthriVarx for joint pain; Xyralid, a hemorrhoid cream; Can-C eye drop and eye care capsule; MZS, a melatonin formula to enhance sleep patterns; and Diabasens, a diabetic foot cream. The company's pipeline products comprise UriVarx for urinary tract infection; Xyralid suppositories for hemorrhoidal symptoms; GlucoGorx supplement, glucometer, lancing device, and GlucoGorx strip for blood sugar levels; Vesele and RecalMax nitric oxide strips. It markets and sells its products through commercial partners to primary care physicians, urologists, gynecologists, and therapists, as well as to other healthcare providers; and directly to consumers through online channels, retailers, and wholesalers. Innovus Pharmaceuticals, Inc. was founded in 2008 and is headquartered in San Diego, California.