Head to Head Comparison: 60 Degrees Pharmaceuticals (NASDAQ:SXTP) versus Innoviva (NASDAQ:INVA)

Innoviva (NASDAQ:INVA) and 60 Degrees Pharmaceuticals (NASDAQ:SXTP) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.

Earnings & Valuation

This table compares Innoviva and 60 Degrees Pharmaceuticals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innoviva	$411.33 million	3.63	$271.17 million	$4.10	5.04
60 Degrees Pharmaceuticals	$1.41 million	2.25	-$7.36 million	($4.82)	-0.19

Innoviva has higher revenue and earnings than 60 Degrees Pharmaceuticals. 60 Degrees Pharmaceuticals is trading at a lower price-to-earnings ratio than Innoviva, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

99.1% of Innoviva shares are held by institutional investors. Comparatively, 8.0% of 60 Degrees Pharmaceuticals shares are held by institutional investors. 2.0% of Innoviva shares are held by insiders. Comparatively, 1.7% of 60 Degrees Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Innoviva and 60 Degrees Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innoviva	81.19%	28.03%	20.19%
60 Degrees Pharmaceuticals	-650.21%	N/A	-136.81%

Analyst Ratings

This is a breakdown of current recommendations for Innoviva and 60 Degrees Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innoviva	1	1	4	0	2.50
60 Degrees Pharmaceuticals	1	2	1	0	2.00

Innoviva presently has a consensus target price of $34.75, indicating a potential upside of 68.20%. 60 Degrees Pharmaceuticals has a consensus target price of $13.85, indicating a potential upside of 1,438.89%. Given 60 Degrees Pharmaceuticals’ higher probable upside, analysts plainly believe 60 Degrees Pharmaceuticals is more favorable than Innoviva.

Volatility and Risk

Innoviva has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, 60 Degrees Pharmaceuticals has a beta of 2.54, indicating that its share price is 154% more volatile than the S&P 500.

Summary

Innoviva beats 60 Degrees Pharmaceuticals on 12 of the 14 factors compared between the two stocks.

About Innoviva

Innoviva, Inc. engages in the development and commercialization of pharmaceutical products in the United States and internationally. The company’s products include RELVAR/BREO ELLIPTA, a once-daily combination medicine consisting of a LABA, vilanterol (VI), an inhaled corticosteroid (ICS), and fluticasone furoate; ANORO ELLIPTA, a once-daily medicine combining a long-acting muscarinic antagonist (LAMA) and umeclidinium bromide (UMEC) with a LABA, VI; GIAPREZA (angiotensin II), a vasoconstrictor to increase blood pressure in adults with septic or other distributive shock; XERAVA (eravacycline) for the treatment of complicated intra-abdominal infections in adults; and XACDURO, a beta lactamase inhibitor for the treatment of hospital-acquired bacterial pneumonia and ventilator-associated bacterial pneumonia. Its development pipeline includes zoliflodacin, a late-stage product candidate, a potential single oral dose cure for the treatment of uncomplicated gonorrhea. Innoviva, Inc. has a strategic partnership with Sarissa Capital Management LP. It has long-acting beta2 agonist (LABA) collaboration agreement with Glaxo Group Limited to develop and commercialize once-daily products for the treatment of chronic obstructive pulmonary disease and asthma. The company was formerly known as Theravance, Inc. and changed its name to Innoviva, Inc. in January 2016. Innoviva, Inc. was incorporated in 1996 and is headquartered in Burlingame, California.

About 60 Degrees Pharmaceuticals

60 Degrees Pharmaceuticals, Inc., a specialty pharmaceutical company, engages in the development and commercialization of therapies for the prevention and treatment of infectious diseases in the United States. The company offers Arakoda for malaria preventative treatment. It also engages in the development of Tafenoquine (Arakoda regimen) that is in Phase IIb clinical trial for COVID-19 indications; Tafenoquine, which is in phase IIA clinical trials for babesiosis, fungal pneumonias, and candidiasis disease; and Celgosivir for respiratory viruses and dengue. The company was founded in 2010 and is headquartered in Washington, the District of Columbia.