Analyzing Elevation Oncology (NASDAQ:ELEV) & Opthea (NASDAQ:OPT)

Opthea (NASDAQ:OPT) and Elevation Oncology (NASDAQ:ELEV) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Volatility and Risk

Opthea has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Elevation Oncology has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

Profitability

This table compares Opthea and Elevation Oncology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Opthea	N/A	N/A	N/A
Elevation Oncology	N/A	-59.73%	-40.05%

Insider & Institutional Ownership

56.0% of Opthea shares are owned by institutional investors. Comparatively, 83.7% of Elevation Oncology shares are owned by institutional investors. 3.2% of Opthea shares are owned by company insiders. Comparatively, 8.1% of Elevation Oncology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Opthea and Elevation Oncology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Opthea	$124,666.00	1,527.02	-$220.24 million	N/A	N/A
Elevation Oncology	N/A	N/A	-$45.70 million	($0.82)	-0.71

Elevation Oncology has lower revenue, but higher earnings than Opthea.

Analyst Recommendations

This is a breakdown of recent ratings for Opthea and Elevation Oncology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Opthea	0	0	1	0	3.00
Elevation Oncology	0	0	5	0	3.00

Opthea presently has a consensus target price of $12.00, indicating a potential upside of 268.10%. Elevation Oncology has a consensus target price of $7.80, indicating a potential upside of 1,244.83%. Given Elevation Oncology’s higher possible upside, analysts clearly believe Elevation Oncology is more favorable than Opthea.

Summary

Elevation Oncology beats Opthea on 6 of the 9 factors compared between the two stocks.

About Opthea

Opthea Limited, a clinical stage biopharmaceutical company, engages in the development and commercialization of therapies primarily for eye disease in Australia. The company's development activities are based on the intellectual property portfolio covering Vascular Endothelial Growth Factors (VEGF) VEGF-C, VEGF-D, and VEGF Receptor-3 for the treatment of diseases associated with blood and lymphatic vessel growth, as well as vascular leakage. Its lead product candidate is Sozinibercept (OPT 302), a soluble form of vascular endothelial growth factor receptor-3 VEGFR-3, currently under Phase 3 clinical development as a novel therapy for wet age-related macular degeneration and diabetic macular edema. The company was formerly known as Circadian Technologies Limited and changed its name to Opthea Limited in December 2015. Opthea Limited was incorporated in 1984 and is based in South Yarra, Australia.

About Elevation Oncology

Elevation Oncology, Inc., an oncology company, focuses on the discovery and development of cancer therapies to treat patients across a range of solid tumors with significant unmet medical needs. The company's lead candidate is EO-3021, an antibody-drug conjugate designed to target Claudin 18.2, a clinically validated molecular target. Its EO-3021 selectively delivers a cytotoxic payload directly to cancer cells expressing Claudin 18.2. Elevation Oncology, Inc. has a license agreement with CSPC Megalith Biopharmaceutical Co., Ltd. to develop and commercialize EO-3021. The company was formerly known as 14ner Oncology, Inc. and changed its name to Elevation Oncology, Inc. in February 2020. The company was incorporated in 2019 and is based in Boston, Massachusetts.