Head-To-Head Analysis: CervoMed (NASDAQ:CRVO) & Elanco Animal Health (NYSE:ELAN)
by Mitch Edgeman · The Markets DailyCervoMed (NASDAQ:CRVO – Get Free Report) and Elanco Animal Health (NYSE:ELAN – Get Free Report) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.
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% |
Valuation and Earnings
This table compares CervoMed and Elanco Animal Health”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CervoMed | $4.01 million | 9.65 | -$26.97 million | ($3.22) | -0.80 |
| Elanco Animal Health | $4.71 billion | 2.59 | -$232.00 million | ($0.41) | -59.71 |
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.
Analyst Ratings
This is a summary of current ratings and recommmendations for CervoMed and Elanco Animal Health, as reported 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 price target of $21.00, indicating a potential upside of 720.31%. Elanco Animal Health has a consensus price target of $29.09, indicating a potential upside of 18.84%. Given CervoMed’s higher possible upside, equities research analysts clearly believe CervoMed is more favorable than Elanco Animal Health.
Risk and Volatility
CervoMed has a beta of -0.64, suggesting that its stock price is 164% less volatile than the S&P 500. Comparatively, Elanco Animal Health has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.
Insider and 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 insiders. Comparatively, 1.1% of Elanco Animal Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
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.