Evoke Pharma (NASDAQ:EVOK) vs. Avadel Pharmaceuticals (NASDAQ:AVDL) Financial Survey

Evoke Pharma (NASDAQ:EVOK) and Avadel Pharmaceuticals (NASDAQ:AVDL) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.

Profitability

This table compares Evoke Pharma and Avadel Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Evoke Pharma N/A -160.44% -119.58%
Avadel Pharmaceuticals -136.46% -608.01% -27.69%

Valuation & Earnings

This table compares Evoke Pharma and Avadel Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Evoke Pharma N/A N/A -$7.57 million ($0.46) -3.15
Avadel Pharmaceuticals $103.27 million 2.57 -$95.30 million ($1.99) -3.57

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

Risk & Volatility

Evoke Pharma has a beta of 1.96, meaning that its stock price is 96% more volatile than the S&P 500. Comparatively, Avadel Pharmaceuticals has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500.

Institutional & Insider Ownership

6.1% of Evoke Pharma shares are owned by institutional investors. Comparatively, 51.7% of Avadel Pharmaceuticals shares are owned by institutional investors. 13.2% of Evoke Pharma shares are owned by insiders. Comparatively, 15.2% of Avadel Pharmaceuticals shares are owned by 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Evoke Pharma and Avadel Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Evoke Pharma 0 1 1 0 2.50
Avadel Pharmaceuticals 0 0 3 0 3.00

Evoke Pharma presently has a consensus price target of $3.17, suggesting a potential upside of 118.28%. Avadel Pharmaceuticals has a consensus price target of $9.00, suggesting a potential upside of 26.76%. Given Evoke Pharma’s higher possible upside, equities research analysts plainly believe Evoke Pharma is more favorable than Avadel Pharmaceuticals.

Summary

Avadel Pharmaceuticals beats Evoke Pharma on 7 of the 13 factors compared between the two stocks.

Evoke Pharma Company Profile

Evoke Pharma, Inc., a specialty pharmaceutical company, primarily focuses on the development of drugs for the treatment of gastroenterological disorders and diseases. It is developing Gimoti, a metoclopramide nasal spray, which is completed Phase III clinical trials for the relief of symptoms associated with acute and recurrent diabetic gastroparesis in women. The company was founded in 2007 and is headquartered in Solana Beach, California.

Avadel Pharmaceuticals Company Profile

Avadel Pharmaceuticals plc operates as a specialty pharmaceutical company in the United States, France, and Ireland. The company primarily develops FT218, which is in a Phase 3 clinical trial for the treatment of narcolepsy patients suffering from excessive daytime sleepiness (EDS) and cataplexy. It also markets three sterile injectable drugs used in the hospital setting, including Akovaz that is indicated for the treatment of clinically important hypotension occurring in the setting of anesthesia; Bloxiverz, a cholinesterase inhibitor indicated for the reversal of the effects of non-depolarizing neuromuscular blocking agents after surgery; and Vazculep, a phenylephrine hydrochloride injection indicated for the treatment of clinically important hypotension. The company was formerly known as Flamel Technologies SA and changed its name to Avadel Pharmaceuticals PLC in January 2017. Avadel Pharmaceuticals plc was incorporated in 2015 and is headquartered in Dublin, Ireland.

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