Reviewing Allarity Therapeutics (NASDAQ:ALLR) & Bright Minds Biosciences (NASDAQ:DRUG)

Bright Minds Biosciences (NASDAQ:DRUG) and Allarity Therapeutics (NASDAQ:ALLR) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and price targets for Bright Minds Biosciences and Allarity Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bright Minds Biosciences	0	0	4	1	3.20
Allarity Therapeutics	0	0	0	0	0.00

Bright Minds Biosciences currently has a consensus target price of $84.33, indicating a potential upside of 138.84%. Given Bright Minds Biosciences’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Bright Minds Biosciences is more favorable than Allarity Therapeutics.

Risk & Volatility

Bright Minds Biosciences has a beta of -6.45, indicating that its share price is 745% less volatile than the S&P 500. Comparatively, Allarity Therapeutics has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500.

Profitability

This table compares Bright Minds Biosciences and Allarity Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bright Minds Biosciences	N/A	-5.85%	-5.68%
Allarity Therapeutics	N/A	-369.67%	-100.06%

Insider and Institutional Ownership

40.5% of Bright Minds Biosciences shares are owned by institutional investors. Comparatively, 11.5% of Allarity Therapeutics shares are owned by institutional investors. 42.7% of Bright Minds Biosciences shares are owned by insiders. Comparatively, 0.1% of Allarity Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Bright Minds Biosciences and Allarity Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bright Minds Biosciences	N/A	N/A	-$2.06 million	($0.17)	-207.71
Allarity Therapeutics	N/A	N/A	-$11.90 million	N/A	N/A

Summary

Bright Minds Biosciences beats Allarity Therapeutics on 9 of the 10 factors compared between the two stocks.

About Bright Minds Biosciences

Bright Minds Biosciences Inc., a biotechnology company, develops therapeutics to improve the lives of patients with severe and life-altering diseases in the United States. Its portfolio of selective 5-HT receptor agonists includes 5-HT2C, 5-HT2A, and 5-HT2C/A for the treatment of epilepsy, pain, and neuropsychiatry; and BMB-101 which completes phase 1 trial for undisclosed seizure disorder. The company also developing BMB-202 for the treatment of depression, anxiety, and PTSD; and BMB-201 for the treatment of anxiety. It has collaboration with National Institutes of Health for the treatment of epilepsy; University of Texas Medical Branch to treat impulse control disorders, such as binge eating; and Medical College of Wisconsin. Bright Minds Biosciences Inc. was founded in 2017 and is headquartered in New York, New York.

About Allarity Therapeutics

Allarity Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in developing oncology therapeutics using drug-specific companion diagnostics generated by its drug response predictor technology. Its drug candidates include Stenoparib, a poly-ADP-ribose polymerase inhibitor that is in Phase 2 clinical trials for ovarian cancer; Dovitinib, a pan- tyrosine kinase inhibitor for the treatment of renal cell carcinoma; IXEMPRA (ixabepilone), a selective microtubule inhibitor in phase 2 for the treatment of metastatic breast cancer; LiPlaCis, a liposomal formulation of cisplatin, which is in Phase 2 clinical trials for metastatic breast cancer; and 2X-111, a liposomal formulation of doxorubicin that is in Phase 2 clinical trials for metastatic breast cancer and glioblastoma multiforme. Allarity Therapeutics, Inc. has a collaboration with Detsamma Investments Pty. Ltd. to develop Deflexifol for the treatment of solid tumors. The company was incorporated in 2004 and is headquartered in Boston, Massachusetts.