TherapeuticsMD (NASDAQ:TXMD) & NRx Pharmaceuticals (NASDAQ:NRXP) Critical Analysis

TherapeuticsMD (NASDAQ:TXMD) and NRx Pharmaceuticals (NASDAQ:NRXP) are both small-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Volatility and Risk

TherapeuticsMD has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, NRx Pharmaceuticals has a beta of 2.11, meaning that its stock price is 111% more volatile than the S&P 500.

Earnings and Valuation

This table compares TherapeuticsMD and NRx Pharmaceuticals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TherapeuticsMD	$3.02 million	6.67	-$570,000.00	$0.02	87.00
NRx Pharmaceuticals	$1.23 million	82.20	-$28.62 million	($0.55)	-4.25

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

Analyst Ratings

This is a summary of recent ratings for TherapeuticsMD and NRx Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TherapeuticsMD	1	0	0	0	1.00
NRx Pharmaceuticals	2	0	6	0	2.50

NRx Pharmaceuticals has a consensus target price of $34.50, suggesting a potential upside of 1,377.52%. Given NRx Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe NRx Pharmaceuticals is more favorable than TherapeuticsMD.

Profitability

This table compares TherapeuticsMD and NRx Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TherapeuticsMD	-6.64%	-1.09%	-0.78%
NRx Pharmaceuticals	-691.81%	N/A	-63.92%

Institutional and Insider Ownership

30.7% of TherapeuticsMD shares are held by institutional investors. Comparatively, 4.3% of NRx Pharmaceuticals shares are held by institutional investors. 1.7% of TherapeuticsMD shares are held by company insiders. Comparatively, 4.9% of NRx Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

About TherapeuticsMD

TherapeuticsMD, Inc. was a pharmaceutical company focused on developing and commercializing products for women’s health. Its portfolio addressed contraception, menopause-related conditions, pregnancy-related nausea, and nutritional support, with products marketed primarily in the United States. The company’s principal products included ANNOVERA, a reusable, year-long vaginal contraceptive system; IMVEXXY, vaginal inserts containing estradiol for the treatment of moderate to severe vaginal symptoms associated with menopause; and BIJUVA, an oral hormone therapy combining estradiol and progesterone.

About NRx Pharmaceuticals

NRx Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on developing treatments for central nervous system disorders, particularly severe depression and suicidal ideation. The company’s research programs are designed to address conditions in which existing therapies may have limited effectiveness or delayed onset. NRx’s lead investigational product is NRX-101, an oral fixed-dose combination of D-cycloserine and lurasidone being developed for bipolar depression with acute suicidal ideation.