Financial Survey: Biomea Fusion (NASDAQ:BMEA) vs. Elite Pharmaceuticals (OTCMKTS:ELTP)

Elite Pharmaceuticals (OTCMKTS:ELTP) and Biomea Fusion (NASDAQ:BMEA) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Elite Pharmaceuticals and Biomea Fusion, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elite Pharmaceuticals	0	0	0	0	0.00
Biomea Fusion	0	2	9	2	3.00

Biomea Fusion has a consensus target price of $39.36, suggesting a potential upside of 891.53%. Given Biomea Fusion’s stronger consensus rating and higher probable upside, analysts clearly believe Biomea Fusion is more favorable than Elite Pharmaceuticals.

Institutional & Insider Ownership

0.0% of Elite Pharmaceuticals shares are held by institutional investors. Comparatively, 96.7% of Biomea Fusion shares are held by institutional investors. 14.4% of Elite Pharmaceuticals shares are held by insiders. Comparatively, 27.6% of Biomea Fusion shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Elite Pharmaceuticals and Biomea Fusion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elite Pharmaceuticals	-8.98%	15.55%	9.74%
Biomea Fusion	N/A	-118.90%	-93.66%

Earnings and Valuation

This table compares Elite Pharmaceuticals and Biomea Fusion”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elite Pharmaceuticals	$56.62 million	9.30	$20.11 million	($0.01)	-49.27
Biomea Fusion	N/A	N/A	-$117.25 million	($4.01)	-0.99

Elite Pharmaceuticals has higher revenue and earnings than Biomea Fusion. Elite Pharmaceuticals is trading at a lower price-to-earnings ratio than Biomea Fusion, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Elite Pharmaceuticals has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500. Comparatively, Biomea Fusion has a beta of -0.35, suggesting that its share price is 135% less volatile than the S&P 500.

Summary

Biomea Fusion beats Elite Pharmaceuticals on 8 of the 14 factors compared between the two stocks.

About Elite Pharmaceuticals

Elite Pharmaceuticals, Inc., a specialty pharmaceutical company, engages in the development, manufacture, and sale of oral, controlled-release products, and generic pharmaceuticals. The company operates in two segments, Abbreviated New Drug Applications for Generic Pharmaceuticals and New Drug Applications for Branded Pharmaceuticals. It owns, licenses, manufactures, and sells various generic and oral dose pharmaceuticals products, such as Phentermine HCl 37.5mg tablets, and 15mg and 30mg capsules for the treatment of bariatrics under Adipex-P brand; Phendimetrazine Tartrate 35mg tablets for bariatrics under the Bontril brand; Naltrexone HCl 50mg tablets for the treatment of pains under the Revia brand; and Isradipine 2.5mg and 5mg capsules for cardiovascular diseases. The company also provides Trimipramine Maleate Immediate Release antidepressant capsules under the Surmontil brand; Dextroamphetamine Saccharate, Amphetamine Aspartate, Dextroamphetamine Sulfate, and Amphetamine Sulfate Immediate Release tablets under the Adderall brand, as well as Dextroamphetamine Saccharate, Amphetamine Aspartate, Dextroamphetamine Sulfate, Amphetamine Sulfate Extended Release capsules under the Adderall XR brand for central nervous system diseases; Dantrolene Sodium capsules for muscle relaxant under the Dantrium brand; SequestOX, an immediate release Oxycodone with Naltrexone; Loxapine Succinate capsules for treating antipsychotic under the Loxapine brand; Acetaminophen and Codeine Phosphate for the management of mild to moderate pain; and antibiotic products. In addition, it manufactures controlled-release products on a contract basis for third parties in the areas of pain, allergy, bariatric, attention deficit, and infection. Further, the company is developing a range of abuse deterrent opioid products. Elite Pharmaceuticals, Inc. was incorporated in 1997 and is headquartered in Northvale, New Jersey.

About Biomea Fusion

Biomea Fusion, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery and development of covalent small molecule drugs to treat patients with genetically defined cancers and metabolic diseases. Its lead product candidate is BMF-219, a covalent inhibitor of menin for treating patients with liquid and solid tumors and type 2 diabetes. The company was incorporated in 2017 and is headquartered in Redwood City, California.