Comparing CervoMed (NASDAQ:CRVO) and Elanco Animal Health (NYSE:ELAN)

CervoMed (NASDAQ:CRVO) and Elanco Animal Health (NYSE:ELAN) are both healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Earnings and Valuation

This table compares CervoMed and Elanco Animal Health”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CervoMed	$4.01 million	9.62	-$26.97 million	($3.22)	-0.79
Elanco Animal Health	$4.71 billion	2.48	-$232.00 million	($0.41)	-57.08

CervoMed has higher earnings, but lower revenue than Elanco Animal Health. Elanco Animal Health is trading at a lower price-to-earnings ratio than CervoMed, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CervoMed and Elanco Animal Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CervoMed	-672.80%	-156.02%	-128.34%
Elanco Animal Health	-3.96%	8.13%	3.99%

Insider & Institutional Ownership

25.2% of CervoMed shares are owned by institutional investors. Comparatively, 97.5% of Elanco Animal Health shares are owned by institutional investors. 35.8% of CervoMed shares are owned by company insiders. Comparatively, 1.1% of Elanco Animal Health shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

CervoMed has a beta of -0.64, indicating that its stock price is 164% less volatile than the S&P 500. Comparatively, Elanco Animal Health has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for CervoMed and Elanco Animal Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CervoMed	1	1	4	1	2.71
Elanco Animal Health	1	2	9	1	2.77

CervoMed presently has a consensus target price of $21.00, suggesting a potential upside of 722.88%. Elanco Animal Health has a consensus target price of $29.09, suggesting a potential upside of 24.30%. Given CervoMed’s higher possible upside, equities analysts clearly believe CervoMed is more favorable than Elanco Animal Health.

Summary

Elanco Animal Health beats CervoMed on 9 of the 14 factors compared between the two stocks.

About CervoMed

CervoMed Inc., a biotechnology company, engages in the development and commercialization of treatments for age-related neurologic disorders. Its lead drug candidate is neflamapimod, an orally administered small molecule brain penetrant for the treatment of dementia with Lewy bodies (DLB), Alzheimer's diseases, frontotemporal dementia, and ischemic stroke recovery. The company also develops EIP200 for central nervous system which is in preclinical trials. CervoMed Inc. was founded in 2010 and is headquartered in Boston, Massachusetts.

About Elanco Animal Health

Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals. It offers pet health disease prevention products, such as parasiticide and vaccine products that protect pets from worms, fleas, and ticks under the Seresto, Advantage, Advantix, and Advocate brands; pet health therapeutics for pain, osteoarthritis, ear infections, cardiovascular, and dermatology indications in canines and felines under the Galliprant and Claro brands; vaccines, antibiotics, parasiticides, and other products for use in poultry and aquaculture production, as well as nutritional health products, including enzymes, probiotics, and prebiotics; and a range of vaccines, antibiotics, implants, parasiticides, and other products used in ruminant and swine production under the Rumensin and Baytril brands. The company sells its products to third-party distributors; veterinarians; and farm animal producers, including beef and dairy farmers, as well as pork, poultry, and aquaculture operations. Elanco Animal Health Incorporated was founded in 1954 and is headquartered in Greenfield, Indiana.