Financial Survey: Cumberland Pharmaceuticals (NASDAQ:CPIX) versus Skye Bioscience (NASDAQ:SKYE)

Cumberland Pharmaceuticals (NASDAQ:CPIX) and Skye Bioscience (NASDAQ:SKYE) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Institutional and Insider Ownership

15.5% of Cumberland Pharmaceuticals shares are owned by institutional investors. Comparatively, 21.1% of Skye Bioscience shares are owned by institutional investors. 43.3% of Cumberland Pharmaceuticals shares are owned by insiders. Comparatively, 3.0% of Skye Bioscience shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Cumberland Pharmaceuticals and Skye Bioscience’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cumberland Pharmaceuticals	-29.54%	-9.50%	-3.19%
Skye Bioscience	N/A	-45.78%	-37.44%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Cumberland Pharmaceuticals and Skye Bioscience, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cumberland Pharmaceuticals	0	0	0	0	0.00
Skye Bioscience	0	0	6	0	3.00

Skye Bioscience has a consensus price target of $18.67, suggesting a potential upside of 526.40%. Given Skye Bioscience’s stronger consensus rating and higher probable upside, analysts clearly believe Skye Bioscience is more favorable than Cumberland Pharmaceuticals.

Volatility & Risk

Cumberland Pharmaceuticals has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500. Comparatively, Skye Bioscience has a beta of 1.88, suggesting that its stock price is 88% more volatile than the S&P 500.

Valuation and Earnings

This table compares Cumberland Pharmaceuticals and Skye Bioscience”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cumberland Pharmaceuticals	$39.55 million	1.90	-$6.28 million	($0.77)	-6.94
Skye Bioscience	N/A	N/A	-$37.65 million	N/A	N/A

Cumberland Pharmaceuticals has higher revenue and earnings than Skye Bioscience.

Summary

Skye Bioscience beats Cumberland Pharmaceuticals on 6 of the 11 factors compared between the two stocks.

About Cumberland Pharmaceuticals

Cumberland Pharmaceuticals Inc., a specialty pharmaceutical company, focuses on the acquisition, development, and commercialization of prescription products for hospital acute care, gastroenterology, and oncology in the United States and internationally. The company offers Acetadote, an injection for the treatment of acetaminophen poisoning; Caldolor, an injection for the treatment of pain and fever; Kristalose, a prescription laxative oral solution for the treatment of constipation; Omeclamox-Pak for the treatment of Helicobacter pylori infection and duodenal ulcer disease; Vaprisol, an injection for treating euvolemic and hypervolemic hyponatremia; Sancuso, an injection for the treatment of chemotherapy treatment; and Vibativ, an injection for the treatment of certain serious bacterial infections, including hospital-acquired and ventilator-associated bacterial pneumonia, as well as complicated skin and skin structure infections. It develops RediTrex injection for the treatment of active rheumatoid, juvenile idiopathic, and severe psoriatic arthritis, as well as disabling psoriasis. In addition, the company is developing ifetroban, a product candidate that is in phase II clinical trial for the treatment of aspirin-exacerbated respiratory disease, systemic sclerosis, and duchenne muscular dystrophy; and has completed phase II clinical trial for the treatment of hepatorenal syndrome and portal hypertension. Further, it develops a clinical program for the use of ifetroban to treat progressive fibrosing interstitial lung diseases. The company was incorporated in 1999 and is headquartered in Nashville, Tennessee.

About Skye Bioscience

Skye Bioscience, Inc., a clinical stage pharmaceutical company, discovers, develops, and commercializes cannabinoid-based molecules for the treatment of infectious diseases. The company's lead product candidate is SBI-100 used in the treatment of glaucoma and ocular hypertension. It is also developing SBI-200 to treat and manage various eye diseases, including uveitis, dry eye syndrome, macular degeneration and diabetic retinopathy. It has license agreement with university of Mississippi. The company was formerly known as Emerald Bioscience, Inc. and changed its name to Skye Bioscience, Inc. in January 2021. The company is headquartered in San Diego, California.