Critical Comparison: Universe Pharmaceuticals (NASDAQ:UPC) versus NRx Pharmaceuticals (NASDAQ:NRXP)

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

Institutional & Insider Ownership

4.3% of NRx Pharmaceuticals shares are owned by institutional investors. Comparatively, 0.2% of Universe Pharmaceuticals shares are owned by institutional investors. 19.0% of NRx Pharmaceuticals shares are owned by company insiders. Comparatively, 57.4% of Universe Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

NRx Pharmaceuticals has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, Universe Pharmaceuticals has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NRx Pharmaceuticals	1	1	4	0	2.50
Universe Pharmaceuticals	1	0	0	0	1.00

NRx Pharmaceuticals presently has a consensus target price of $36.75, suggesting a potential upside of 1,518.94%. Given NRx Pharmaceuticals’ stronger consensus rating and higher probable upside, research analysts plainly believe NRx Pharmaceuticals is more favorable than Universe Pharmaceuticals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NRx Pharmaceuticals	N/A	N/A	-395.06%
Universe Pharmaceuticals	N/A	N/A	N/A

Valuation & Earnings

This table compares NRx Pharmaceuticals and Universe Pharmaceuticals”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NRx Pharmaceuticals	N/A	N/A	-$25.13 million	($2.35)	-0.97
Universe Pharmaceuticals	$23.02 million	0.11	-$8.73 million	N/A	N/A

Universe Pharmaceuticals has higher revenue and earnings than NRx Pharmaceuticals.

Summary

NRx Pharmaceuticals beats Universe Pharmaceuticals on 5 of the 9 factors compared between the two stocks.

About NRx Pharmaceuticals

NRx Pharmaceuticals, Inc., a clinical-stage bio-pharmaceutical company, develops novel therapeutics for the treatment of central nervous system disorders, including suicidal depression, post-traumatic stress disorder, and chronic pain. Its products include NRX-101 (D-cycloserine/Lurasidone), an oral, fixed dosed combination of D-cycloserine and lurasidone that earned food and drug administration-designated breakthrough therapy for suicidal treatment-resistant bipolar depression; and NRX-100 (ketamine), which has been awarded FDA fast track designation for the treatment of severe bipolar depression with acute suicidal ideation and behavior. The company has a partnership with Alvogen Inc. and Lotus Pharmaceutical Company; development and manufacturing agreement with Nephron Pharmaceuticals, Inc. and Alcami; license agreement with Apkarian Technologies; development and license agreement with Glytech; license agreement with Sarah Herzog Memorial Hospital. The company was founded in 2015 and is based in Wilmington, Delaware.

About Universe Pharmaceuticals

Universe Pharmaceuticals INC, a pharmaceutical company, engages in the manufacture, marketing, distribution, and sale of traditional Chinese medicine derivative products in China. It offers products for the treatment of common chronic health conditions in the elderly for physical wellness and longevity; and cold and flu medications. The company also distributes and sells third-party producers, including biomedical drugs, medical instruments, traditional Chinese medicine pieces products, and dietary supplements. Its customers include pharmaceutical companies, hospitals, clinics, and drugstore chains. The company was incorporated in 2019 and is based in Ji’An, China. Universe Pharmaceuticals INC is a subsidiary of Sununion Holding Group Limited.