Financial Review: Citius Pharmaceuticals (NASDAQ:CTXR) versus Evotec (NASDAQ:EVO)

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

Institutional & Insider Ownership

16.9% of Citius Pharmaceuticals shares are owned by institutional investors. Comparatively, 5.8% of Evotec shares are owned by institutional investors. 15.0% of Citius Pharmaceuticals shares are owned by company insiders. Comparatively, 1.0% of Evotec shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Citius Pharmaceuticals and Evotec, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Citius Pharmaceuticals	0	0	2	1	3.33
Evotec	1	2	2	0	2.20

Citius Pharmaceuticals currently has a consensus target price of $54.50, suggesting a potential upside of 1,461.60%. Evotec has a consensus target price of $5.93, suggesting a potential upside of 41.95%. Given Citius Pharmaceuticals’ stronger consensus rating and higher probable upside, equities analysts plainly believe Citius Pharmaceuticals is more favorable than Evotec.

Profitability

This table compares Citius Pharmaceuticals and Evotec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Citius Pharmaceuticals	N/A	-44.65%	-39.39%
Evotec	N/A	N/A	N/A

Volatility and Risk

Citius Pharmaceuticals has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Evotec has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Citius Pharmaceuticals	N/A	N/A	-$32.54 million	($6.00)	-0.58
Evotec	$777.05 million	1.91	-$90.82 million	N/A	N/A

Citius Pharmaceuticals has higher earnings, but lower revenue than Evotec.

Summary

Citius Pharmaceuticals beats Evotec on 7 of the 10 factors compared between the two stocks.

About Citius Pharmaceuticals

Citius Pharmaceuticals, Inc., a late-stage pharmaceutical company, engages in the development and commercialization of critical care products focusing on oncology products, anti-infectives products in adjunct cancer care, prescription products, and stem cell therapy. It is developing five proprietary products comprising LYMPHIR, an engineered IL-2 diphtheria toxin fusion protein for the treatment of patients with persistent or recurrent cutaneous T-cell lymphoma, which is in Phase 3 clinical trial; Mino-Lok, an antibiotic lock solution to treat patients with catheter-related bloodstream infections by salvaging the infected catheter, which is in Phase 3 clinical trial; Halo-Lido, a corticosteroid-lidocaine topical formulation that intends to provide anti-inflammatory and anesthetic relief to persons suffering from hemorrhoids that is in clinical Phase 2b trial; Mino-Wrap, a liquifying gel-based wrap for reduction of tissue expander infections following breast reconstructive surgeries; and NoveCite, a mesenchymal stem cell therapy for the treatment of acute respiratory disease syndrome. The company was founded in 2007 and is headquartered in Cranford, New Jersey.

About Evotec

Evotec SE operates as drug discovery and development partner for the pharmaceutical and biotechnology industry worldwide. The company is developing pharmaceutical products in various therapeutic areas, such as autoimmune diseases, cancer, CNS diseases, diabetes, fibrosis, immunology, infectious diseases, kidney diseases, liver diseases, pain and inflammation, rare diseases, respiratory diseases, tuberculosis, and women’s health. It has collaboration agreements with SK bioscience, JingXin, Carrick Therapeutics, Sernova, Topas Therapeutics, Exscientia, CONBA Group, Centrexion, Sanofi/NIH, Kazia Therapeutics, Bristol Myers Squibb, Topas Therapeutics, Immunitas, Exscientia, and Bayer; and Inserm, the French National Institute of Health and Medical Research, Lille University Hospital, and Inserm Transfert to identify novel therapeutic targets and diagnostic and prognostic markers in obesity and metabolic diseases, as well as collaboration with CHDI Foundation, Inc.; and a strategic partnership with Dewpoint Therapeutics to advance its portfolio targeting biomolecular condensates as a novel domain for therapeutic intervention towards the clinic, as well as research collaboration with Pfizer for metabolic and infectious diseases. The company was formerly known as Evotec AG and changed its name to Evotec SE in April 2019. Evotec SE was incorporated in 1993 and is headquartered in Hamburg, Germany.