Analyzing Lexaria Bioscience (NASDAQ:LEXX) & Xeris Biopharma (NASDAQ:XERS)

Xeris Biopharma (NASDAQ:XERS) and Lexaria Bioscience (NASDAQ:LEXX) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Analyst Ratings

This is a breakdown of current ratings for Xeris Biopharma and Lexaria Bioscience, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xeris Biopharma	0	0	3	0	3.00
Lexaria Bioscience	0	0	2	0	3.00

Xeris Biopharma presently has a consensus price target of $4.67, suggesting a potential upside of 59.27%. Lexaria Bioscience has a consensus price target of $11.00, suggesting a potential upside of 237.42%. Given Lexaria Bioscience’s higher probable upside, analysts clearly believe Lexaria Bioscience is more favorable than Xeris Biopharma.

Insider & Institutional Ownership

42.8% of Xeris Biopharma shares are owned by institutional investors. Comparatively, 13.1% of Lexaria Bioscience shares are owned by institutional investors. 4.6% of Xeris Biopharma shares are owned by insiders. Comparatively, 7.6% of Lexaria Bioscience shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Xeris Biopharma and Lexaria Bioscience’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xeris Biopharma	-32.83%	-16,662.63%	-18.07%
Lexaria Bioscience	N/A	-88.39%	-84.05%

Risk and Volatility

Xeris Biopharma has a beta of 2.76, meaning that its share price is 176% more volatile than the S&P 500. Comparatively, Lexaria Bioscience has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Valuation and Earnings

This table compares Xeris Biopharma and Lexaria Bioscience”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xeris Biopharma	$181.41 million	2.39	-$62.26 million	($0.47)	-6.23
Lexaria Bioscience	$411,019.00	102.21	-$6.66 million	($0.44)	-7.41

Lexaria Bioscience has lower revenue, but higher earnings than Xeris Biopharma. Lexaria Bioscience is trading at a lower price-to-earnings ratio than Xeris Biopharma, indicating that it is currently the more affordable of the two stocks.

Summary

Lexaria Bioscience beats Xeris Biopharma on 7 of the 13 factors compared between the two stocks.

About Xeris Biopharma

Xeris Biopharma Holdings, Inc., a biopharmaceutical company, engages in developing and commercializing therapies in Illinois. The company offers Gvoke, a ready-to-use liquid-stable glucagon for the treatment of severe hypoglycemia pediatric and adult patients; Keveyis, a therapy for the treatment of hyperkalemic, hypokalemic, and related variants of primary periodic paralysis; and Recorlev, a cortisol synthesis inhibitor proved for the treatment of endogenous hypercortisolemia in adult patients with Cushing's syndrome. It is also developing XP-8121, a once-weekly subcutaneous injection of levothyroxine that is in phase I clinical trial for the treatment of hypothyroidism; and non-aqueous XeriSol and XeriJect technologies for various therapies. The company was incorporated in 2005 and is headquartered in Chicago, Illinois.

About Lexaria Bioscience

Lexaria Bioscience Corp. operates as a biotechnology company. It develops and out-licenses its patented drug delivery technology, DehydraTECH, which combines lipophilic molecules or active pharmaceutical ingredients with specific long-chain fatty acids and carrier compounds that improve the way they enter the bloodstream, increasing their effectiveness and allowing for lower overall dosing while promoting healthier oral ingestion methods. The company's DehydraTECH is used with a range of active molecules encompassing fat-soluble vitamins, pain medications, hormones, PDE5 inhibitors, antivirals, oral nicotine and its analogs, and cannabinoids. Its DehydraTECH technology evaluates therapeutic indications, including hypertension, heart disease, and diabetes; and is suitable for a variety of product formats, such as pharmaceuticals, nutraceuticals, over the counter, and consumer packaged goods. Lexaria Bioscience Corp. was incorporated in 2004 and is headquartered in Kelowna, Canada.