Critical Survey: Aytu BioPharma (NASDAQ:AYTU) & Praxis Precision Medicines (NASDAQ:PRAX)

Aytu BioPharma (NASDAQ:AYTU) and Praxis Precision Medicines (NASDAQ:PRAX) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Volatility and Risk

Aytu BioPharma has a beta of -1.4, indicating that its share price is 240% less volatile than the S&P 500. Comparatively, Praxis Precision Medicines has a beta of 2.67, indicating that its share price is 167% more volatile than the S&P 500.

Profitability

This table compares Aytu BioPharma and Praxis Precision Medicines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aytu BioPharma	-8.28%	-21.89%	-5.37%
Praxis Precision Medicines	-9,409.22%	-54.86%	-50.52%

Valuation & Earnings

This table compares Aytu BioPharma and Praxis Precision Medicines”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aytu BioPharma	$79.76 million	0.12	-$15.84 million	($1.23)	-1.31
Praxis Precision Medicines	$2.45 million	609.95	-$123.28 million	($10.30)	-7.78

Aytu BioPharma has higher revenue and earnings than Praxis Precision Medicines. Praxis Precision Medicines is trading at a lower price-to-earnings ratio than Aytu BioPharma, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

33.5% of Aytu BioPharma shares are held by institutional investors. Comparatively, 67.8% of Praxis Precision Medicines shares are held by institutional investors. 2.8% of Aytu BioPharma shares are held by insiders. Comparatively, 2.7% of Praxis Precision Medicines shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Aytu BioPharma and Praxis Precision Medicines, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aytu BioPharma	0	0	0	0	0.00
Praxis Precision Medicines	0	1	8	0	2.89

Praxis Precision Medicines has a consensus target price of $146.33, suggesting a potential upside of 82.53%. Given Praxis Precision Medicines’ stronger consensus rating and higher possible upside, analysts clearly believe Praxis Precision Medicines is more favorable than Aytu BioPharma.

Summary

Aytu BioPharma beats Praxis Precision Medicines on 8 of the 14 factors compared between the two stocks.

About Aytu BioPharma

Aytu Biopharma, Inc., a commercial-stage pharmaceutical company, focuses on commercializing novel therapeutics and consumer healthcare products the United States and internationally. The company operates through two segments: Rx segment and Consumer Health segment. The Rx segment offers prescription products for the treatment of attention deficit hyperactivity disorder (ADHD), including Adzenys XR-ODT for patients from six years and older, and Cotempla XR-ODT for patients from six to seventeen years old. The segment also provides pediatric prescription product portfolio comprising Karbinal ER, an extended-release carbinoxamine (antihistamine) suspension indicated to treat numerous allergic conditions for patients two years and above; and Poly-Vi-Flor and Tri-Vi-Flor complementary prescription fluoride-based multi-vitamin products containing combinations of fluoride and vitamins in liquid and chewable tablet form for infants and children with fluoride deficiency. The Consumer Health segment is involved in the commercialization of over-the-counter medicines, personal care products, and dietary supplements in various categories, such as hair loss, digestive health, urological health, diabetes management, and allergy. The segment offers Regoxidine – for Men and Women, a proprietary over-the-counter aerosol foam that works to treat hair loss in both men and women; and OmepraCareDR and EsomepraCareDR, acid reducers for the treatment of frequent heartburn. It also engages in the development of AR101 (enzastaurin), an orally available investigational first-in-class small molecule, serine/threonine kinase inhibitor targeting the treatment of vascular Ehlers-Danlos Syndrome. The company was formerly known as Aytu BioScience, Inc. and changed its name to Aytu Biopharma, Inc. in March 2021. Aytu Biopharma, Inc. is based in Denver, Colorado.

About Praxis Precision Medicines

Praxis Precision Medicines, Inc., a clinical-stage biopharmaceutical company, engages in the development of therapies for central nervous system disorders characterized by neuronal excitation-inhibition imbalance. It is developing ulixacaltamide, a small molecule inhibitor of T-type calcium channels that is in Phase III clinical trial for the treatment of essential tremor; PRAX-562 for the treatment of pediatric patients with developmental and epileptic encephalopathies (DEE); and PRAX-628 to treat focal epilepsy. The company also develops PRAX-222 for the treatment of pediatric patients with early-onset SCN2A-DEE; PRAX-020 to treat KCNT1 related epilepsies; PRAX-080 for the treatment of PCDH19; and PRAX-090 and PRAX-100 for SYNGAP1 and SCN2A-LoF. It has a license agreement with RogCon Inc.; a research collaboration and license agreement with Ionis Pharmaceuticals, Inc.; a strategic collaboration and license agreement with UCB Biopharma SRL; and collaboration with The Florey Institute to develop three novel ASOs. The company was incorporated in 2015 and is based in Boston, Massachusetts.