Head-To-Head Comparison: Ovid Therapeutics (NASDAQ:OVID) vs. Enanta Pharmaceuticals (NASDAQ:ENTA)

Enanta Pharmaceuticals (NASDAQ:ENTA) and Ovid Therapeutics (NASDAQ:OVID) are both small-cap healthcare companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Institutional & Insider Ownership

95.0% of Enanta Pharmaceuticals shares are owned by institutional investors. Comparatively, 72.2% of Ovid Therapeutics shares are owned by institutional investors. 11.5% of Enanta Pharmaceuticals shares are owned by insiders. Comparatively, 7.0% of Ovid Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Enanta Pharmaceuticals and Ovid Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enanta Pharmaceuticals	1	0	3	0	2.50
Ovid Therapeutics	1	0	11	1	2.92

Enanta Pharmaceuticals presently has a consensus price target of $19.00, suggesting a potential upside of 64.50%. Ovid Therapeutics has a consensus price target of $6.00, suggesting a potential upside of 144.90%. Given Ovid Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Ovid Therapeutics is more favorable than Enanta Pharmaceuticals.

Profitability

This table compares Enanta Pharmaceuticals and Ovid Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enanta Pharmaceuticals	-96.89%	-61.84%	-20.70%
Ovid Therapeutics	N/A	-23.64%	-20.52%

Volatility and Risk

Enanta Pharmaceuticals has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Ovid Therapeutics has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500.

Valuation and Earnings

This table compares Enanta Pharmaceuticals and Ovid Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enanta Pharmaceuticals	$65.26 million	5.15	-$81.89 million	($2.41)	-4.79
Ovid Therapeutics	$7.25 million	66.00	-$17.41 million	($0.31)	-7.90

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

Summary

Ovid Therapeutics beats Enanta Pharmaceuticals on 10 of the 15 factors compared between the two stocks.

About Enanta Pharmaceuticals

Enanta Pharmaceuticals, Inc., a biotechnology company, discovers and develops small molecule drugs for the treatment of viral infections and liver diseases. Its product pipeline comprises EDP-514, which is in phase 1b clinical development for the treatment of chronic infection with hepatitis B virus or HBV; EDP-938 and EDP-323, which is in phase II clinical development for the treatment of respiratory syncytial virus; EDP-235, which is in phase II clinical development for the treatment of human coronaviruses; and Glecaprevir, which is in the market for the treatment of chronic infection with hepatitis C virus or HCV. The company has a collaborative development and license agreement with Abbott Laboratories to develop, manufacture, and commercialize HCV NS3 and NS3/4A protease inhibitor compounds, including paritaprevir and glecaprevir. Enanta Pharmaceuticals, Inc. was incorporated in 1995 and is headquartered in Watertown, Massachusetts.

About Ovid Therapeutics

Ovid Therapeutics Inc., a biopharmaceutical company, engages in the development of impactful medicines for patients and families with epilepsies and seizure-related neurological disorders in the United States. The company is developing soticlestat, a novel cholesterol 24 hydroxylase inhibitor, which is in Phase 3 clinical trials for the potential treatment of patients with resistant epilepsies; OV329, a GABA aminotransferase inhibitor which is in Phase 1 clinical trials for the treatment of seizures associated with tuberous sclerosis complex and infantile spasms; and OV350, a small molecule direct activator of the KCC2 transporter, which is in Phase 1 clinical trials for treating epilepsies. It also develops OV815, that focuses on the mutations associated with KIF1A-associated neurological disorder (KAND); OV888 (GV101), a highly selective rock2 inhibitor which is in Phase 1 double-blind multiple-ascending dose trial; OV825, has advanced to potential candidate lead identification for the rare neurodevelopmental condition HNRNPH2 (Bain Syndrome); and OV882, a short hairpin RNA gene therapy for the treatment of Angelman syndrome. The company has license and collaboration agreements with Healx, AstraZeneca AB, H. Lundbeck A/S, Northwestern University, and Graviton, as well as Marinus Pharmaceuticals, Inc. The company was incorporated in 2014 and is headquartered in New York, New York.