Contrasting Ensysce Biosciences (NASDAQ:ENSC) & InflaRx (NASDAQ:IFRX)
by Kim Johansen · The Markets DailyEnsysce Biosciences (NASDAQ:ENSC – Get Free Report) and InflaRx (NASDAQ:IFRX – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.
Profitability
This table compares Ensysce Biosciences and InflaRx’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ensysce Biosciences | -244.47% | -437.31% | -231.45% |
| InflaRx | N/A | -75.17% | -57.46% |
Valuation and Earnings
This table compares Ensysce Biosciences and InflaRx”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ensysce Biosciences | $5.21 million | 0.41 | -$7.99 million | ($6.37) | -0.09 |
| InflaRx | $30,000.00 | 2,122.83 | -$49.85 million | ($0.76) | -1.24 |
Ensysce Biosciences has higher revenue and earnings than InflaRx. InflaRx is trading at a lower price-to-earnings ratio than Ensysce Biosciences, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
5.6% of Ensysce Biosciences shares are held by institutional investors. Comparatively, 42.4% of InflaRx shares are held by institutional investors. 2.8% of Ensysce Biosciences shares are held by company insiders. Comparatively, 16.3% of InflaRx shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
Ensysce Biosciences has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, InflaRx has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings for Ensysce Biosciences and InflaRx, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ensysce Biosciences | 1 | 0 | 0 | 0 | 1.00 |
| InflaRx | 1 | 1 | 5 | 0 | 2.57 |
InflaRx has a consensus price target of $6.17, suggesting a potential upside of 556.03%. Given InflaRx’s stronger consensus rating and higher possible upside, analysts clearly believe InflaRx is more favorable than Ensysce Biosciences.
Summary
InflaRx beats Ensysce Biosciences on 11 of the 14 factors compared between the two stocks.
About Ensysce Biosciences
Ensysce Biosciences, Inc., a clinical-stage pharmaceutical company, engages in developing various prescription drugs for severe pain relief in opioid misuse, abuse, and overdose in the United States. It develops products using Trypsin Activated Abuse Protection (TAAP) platform, an abuse-resistant opioid prodrug technology; and Multi-Pill Abuse Resistance (MPAR) platform, an over-dose protection opioid prodrug technology. The company is developing PF614, a TAAP oxycodone prodrug candidate for the treatment of acute or chronic pain; and PF614-MPAR, a combination product of PF614 and nafamostat for overdose protection against excessive oral ingestion, as well as an oral and inhalation drug product of nafamostat for use against coronaviral infections and other pulmonary diseases, such as cystic fibrosis. It is also developing PF614, an extended-release oxycodone-derivative that releases clinically effective oxycodone; PF329 for pain with abuse protection; PF8001 and PF8026 are extended and immediate-release prodrugs of amphetamine for ADHD; and PF9001 to treat Opioid use disorder. The company was founded in 2003 and is based in La Jolla, California.
About InflaRx
InflaRx N.V., a clinical-stage biopharmaceutical company, discovers and develops inhibitors using C5a technology in Germany and the United States. The company's C5a is an inflammatory mediator that is involved in the progression of a variety of autoimmune and other inflammatory diseases. Its lead product candidate is vilobelimab, a novel intravenously delivered first-in-class anti-C5a monoclonal antibody, which completed the Phase III clinical trial for the treatment of hidradenitis suppurativa, a rare and chronic debilitating systemic inflammatory skin disease; for the treatment of anti-neutrophil cytoplasm antibody associated vasculitis, a rare and life-threatening autoimmune disease that is in Phase II trial; to treat pyoderma gangraenosum, a chronic inflammatory skin disorder that is in Phase IIa exploratory study; and for the treatment of PD-1/PD-L1 inhibitor resistant/refractory locally advanced or metastatic cutaneous squamous cell carcinoma that is in Phase II clinical development stage. The company develops INF904, an oral, small molecule drug candidate for the chronic inflammatory and autoimmune diseases; IFX002 that is in pre-clinical development stage for the treatment of chronic inflammation and autoimmune diseases; and Gohibic (vilobelimab) for the treatment of COVID-19 and broader ARDS. It has co-development agreement with Beijing Defengrei Biotechnology Co. Ltd.; and clinical trial collaboration and supply agreement with Merck & Co. Inc. The company was formerly known as Fireman B.V. and changed its name to InflaRx N.V. in 2017. InflaRx N.V. was founded in 2007 and is headquartered in Jena, Germany.