Zevra Therapeutics (NASDAQ:ZVRA) vs. Cocrystal Pharma (NASDAQ:COCP) Critical Contrast

Zevra Therapeutics (NASDAQ:ZVRA) and Cocrystal Pharma (NASDAQ:COCP) are both small-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Profitability

This table compares Zevra Therapeutics and Cocrystal Pharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zevra Therapeutics	42.82%	54.54%	34.15%
Cocrystal Pharma	N/A	-150.61%	-97.86%

Volatility & Risk

Zevra Therapeutics has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Cocrystal Pharma has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.

Valuation and Earnings

This table compares Zevra Therapeutics and Cocrystal Pharma”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zevra Therapeutics	$106.47 million	6.30	$83.23 million	$0.92	12.28
Cocrystal Pharma	N/A	N/A	-$8.83 million	($0.73)	-1.53

Zevra Therapeutics has higher revenue and earnings than Cocrystal Pharma. Cocrystal Pharma is trading at a lower price-to-earnings ratio than Zevra Therapeutics, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Zevra Therapeutics and Cocrystal Pharma, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zevra Therapeutics	0	2	9	0	2.82
Cocrystal Pharma	1	0	0	0	1.00

Zevra Therapeutics presently has a consensus target price of $27.14, indicating a potential upside of 140.20%. Given Zevra Therapeutics’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Zevra Therapeutics is more favorable than Cocrystal Pharma.

Institutional and Insider Ownership

35.0% of Zevra Therapeutics shares are held by institutional investors. Comparatively, 6.7% of Cocrystal Pharma shares are held by institutional investors. 3.7% of Zevra Therapeutics shares are held by insiders. Comparatively, 39.4% of Cocrystal Pharma shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Zevra Therapeutics beats Cocrystal Pharma on 11 of the 13 factors compared between the two stocks.

About Zevra Therapeutics

Zevra Therapeutics, Inc. discovers and develops various proprietary prodrugs to treat serious medical conditions in the United States. The company develops its products through Ligand Activated Therapy platform. Its lead product candidate is KP1077, consisting of KP1077IH, which is under Phase 2 clinical trial for the treatment of idiopathic hypersomnia, and KP1077N, which is under Phase ½ clinical trial to treat narcolepsy. The company is also developing Celiprolol, a prodrug product candidate that is under Phase 1/2 clinical trial for the treatment of vascular Ehlers Danlos syndrome. In addition, it offers AZSTARYS, a once-daily treatment for attention deficit hyperactivity disorder in patients aged six years and older; OLPRUVA to treat urea cycle disorders; and Arimoclomol for the treatment of niemann pick disease type C, an ultra-rare neurodegenerative lysosomal storage disorder. The company has collaboration and license agreement with Commave Therapeutics SA to develop, manufacture and commercialize the company’s product candidates containing SDX and d-methylphenidate; and license agreement with Acer and Relief Therapeutics, Inc. to develop and commercialize rights for OLPRUVA. The company was formerly known as KemPharm, Inc. and changed its name to Zevra Therapeutics, Inc. in February 2023. Zevra Therapeutics, Inc. was incorporated in 2006 and is headquartered in Celebration, Florida.

About Cocrystal Pharma

Cocrystal Pharma, Inc., a biotechnology company, focuses on the discovery and development of antiviral therapeutic treatments for serious and/or chronic viral diseases. It employs structure-based technologies to create antiviral drugs primarily to treat hepatitis C virus (HCV), influenza virus, coronavirus, norovirus, and respiratory virus infections. The company develops CC-31244, a HCV non-nucleoside polymerase inhibitor that has completed Phase II a clinical trial to treat HCV infection; and CC-42344, a PB2 inhibitor that has completed Phase I clinical trial for treating influenza infection. It is also involved in identifying and developing non-nucleoside polymerase inhibitors for norovirus infections. Cocrystal Pharma, Inc. has a license and research collaboration agreement with Merck Sharp & Dohme Corp. to discover and develop proprietary influenza A/B antiviral agents; and a license agreement with Kansas State University Research Foundation to develop antiviral compounds for the treatment of norovirus and coronavirus infections. The company is headquartered in Bothell, Washington.