Dova Pharmaceuticals (NASDAQ: FLKS) and Flex Pharma (NASDAQ:FLKS) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Valuation and Earnings

This table compares Dova Pharmaceuticals and Flex Pharma’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dova Pharmaceuticals N/A N/A -$29.95 million ($1.40) -16.74
Flex Pharma $1.27 million 7.26 -$34.43 million ($1.99) -0.26

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Dova Pharmaceuticals and Flex Pharma, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dova Pharmaceuticals 0 1 2 0 2.67
Flex Pharma 0 3 2 0 2.40

Dova Pharmaceuticals currently has a consensus target price of $33.67, indicating a potential upside of 43.63%. Flex Pharma has a consensus target price of $17.50, indicating a potential upside of 3,331.37%. Given Flex Pharma’s higher probable upside, analysts clearly believe Flex Pharma is more favorable than Dova Pharmaceuticals.

Insider & Institutional Ownership

36.2% of Dova Pharmaceuticals shares are held by institutional investors. Comparatively, 24.7% of Flex Pharma shares are held by institutional investors. 55.5% of Dova Pharmaceuticals shares are held by company insiders. Comparatively, 7.6% of Flex Pharma shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Dova Pharmaceuticals and Flex Pharma’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dova Pharmaceuticals N/A -57.70% -44.85%
Flex Pharma -3,092.50% -137.76% -116.00%

Risk and Volatility

Dova Pharmaceuticals has a beta of -0.31, suggesting that its share price is 131% less volatile than the S&P 500. Comparatively, Flex Pharma has a beta of 2.81, suggesting that its share price is 181% more volatile than the S&P 500.

Summary

Dova Pharmaceuticals beats Flex Pharma on 8 of the 12 factors compared between the two stocks.

Dova Pharmaceuticals Company Profile

Dova Pharmaceuticals, Inc., a pharmaceutical company, focuses on acquiring, developing, and commercializing drug candidates for thrombocytopenia disease. The company's lead drug candidate is avatrombopag that has completed Phase III clinical trials for the treatment of thrombocytopenia in patients with chronic liver disease. Dova Pharmaceuticals, Inc. was founded in 2016 and is headquartered in Durham, North Carolina.

Flex Pharma Company Profile

Flex Pharma, Inc., a biotechnology company, develops and commercializes products for the treatment of muscle cramps, spasms, and spasticity associated with neurological conditions and exercise in the United States. It operates in two segments, Consumer Operations and Drug Development. The company's lead drug candidate is FLX-787, a single molecule, chemically synthesized, and dual transient receptor potential V1/A1 ion channel activator, which is in exploratory Phase 2 clinical trial in Australia for the treatment of patients with multiple sclerosis; and two Phase 2 clinical trials in the United States for the treatment of patients with motor neuron disease in amyotrophic lateral sclerosis. It also offers HOTSHOT, a consumer beverage to prevent and treat exercise associated muscle cramps. The company markets and sells its HOTSHOT product online through its e-commerce Website, as well as through specialty retailers. Flex Pharma, Inc. was founded in 2014 and is headquartered in Boston, Massachusetts.

Receive News & Ratings for Dova Pharmaceuticals Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dova Pharmaceuticals and related companies with MarketBeat.com's FREE daily email newsletter.