Financial Analysis: Verona Pharma (NASDAQ:TARA) & INmune Bio (NASDAQ:INMB)

Verona Pharma (NASDAQ:TARA) and INmune Bio (NASDAQ:INMB) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of current ratings for Verona Pharma and INmune Bio, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verona Pharma 0 0 1 0 3.00
INmune Bio 0 0 3 0 3.00

INmune Bio has a consensus target price of $11.33, suggesting a potential upside of 87.33%. Given INmune Bio’s higher possible upside, analysts plainly believe INmune Bio is more favorable than Verona Pharma.

Valuation & Earnings

This table compares Verona Pharma and INmune Bio’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Verona Pharma N/A N/A -$14.99 million N/A N/A
INmune Bio N/A N/A -$7.68 million ($0.75) -8.07

Insider and Institutional Ownership

3.0% of INmune Bio shares are owned by institutional investors. 45.7% of Verona Pharma shares are owned by company insiders. Comparatively, 67.7% of INmune Bio shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Verona Pharma and INmune Bio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Verona Pharma N/A -338.27% -95.71%
INmune Bio N/A -32.17% -31.05%

Volatility and Risk

Verona Pharma has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, INmune Bio has a beta of 2.4, meaning that its share price is 140% more volatile than the S&P 500.

Summary

INmune Bio beats Verona Pharma on 8 of the 8 factors compared between the two stocks.

Verona Pharma Company Profile

ArTara Therapeutics, Inc. develops rare diseases therapeutics for patients suffering from gastrointestinal, metabolic, circulatory, and neurological disorders. It offers IV Choline Chloride, a drug for the orphan disease intestinal failure associated liver disease (IFALD). The company was incorporated in 2017 and is headquartered in New York, New York.

INmune Bio Company Profile

INmune Bio Inc., a clinical-stage immunotherapy company, focuses on engineering and harnessing the innate immune system to treat the patient's cancer. The company intends to develop and commercialize product candidates to treat diseases comprising hematologic malignancies and solid tumors. Its development programs include INKmune, which focuses on treating women with relapse refractory ovarian carcinoma; and INB03 that treats patients with advanced cancers with elevated biomarkers of inflammation, including elevated levels of myeloid derived suppressor cells in their blood. The company was founded in 2015 and is based in La Jolla, California.

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