Head-To-Head Contrast: Adial Pharmaceuticals (NASDAQ:ADIL) versus Galapagos (NASDAQ:GLPG)

Adial Pharmaceuticals (NASDAQ:ADIL) and Galapagos (NASDAQ:GLPG) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Risk and Volatility

Adial Pharmaceuticals has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, Galapagos has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Adial Pharmaceuticals and Galapagos, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adial Pharmaceuticals	0	0	0	0	N/A
Galapagos	1	4	0	0	1.80

Galapagos has a consensus target price of $31.00, suggesting a potential upside of 4.03%. Given Galapagos’ higher probable upside, analysts clearly believe Galapagos is more favorable than Adial Pharmaceuticals.

Institutional & Insider Ownership

16.4% of Adial Pharmaceuticals shares are owned by institutional investors. Comparatively, 32.5% of Galapagos shares are owned by institutional investors. 14.5% of Adial Pharmaceuticals shares are owned by company insiders. Comparatively, 2.9% of Galapagos shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adial Pharmaceuticals	N/A	N/A	-$5.12 million	N/A	N/A
Galapagos	$261.40 million	7.51	$229.12 million	N/A	N/A

Galapagos has higher revenue and earnings than Adial Pharmaceuticals.

Profitability

This table compares Adial Pharmaceuticals and Galapagos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adial Pharmaceuticals	N/A	-183.64%	-160.59%
Galapagos	N/A	N/A	N/A

Summary

Galapagos beats Adial Pharmaceuticals on 6 of the 8 factors compared between the two stocks.

About Adial Pharmaceuticals

Adial Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development of therapeutics for the treatment or prevention of addiction and related disorders. Its lead product is AD04, a serotonin-3 antagonist, which is in Phase III clinical trial for the treatment of alcohol use disorder. The company also focuses on developing drug candidates for non-opioid pain reduction and other diseases and disorders. Adial Pharmaceuticals, Inc. was founded in 2010 and is based in Charlottesville, Virginia.

About Galapagos

Galapagos NV, a biotechnology company, develops medicines focusing on oncology and immunology primarily in the United States and Europe. The company's pipeline products comprise GLPG3667 that has completed phase 1b trial; GLPG5101, a CD19 CAR-T product candidate manufactured at point-of-care, currently in Phase1/2 trial in relapsed/refractory non-hodgkin lymphoma; GLPG5201, a CD19 CAR-T product candidates manufactured at point-of-care, currently in phase 1/2 trial in replapsed/refractory chronic lymphocytic leukemia; and GLPG5301, a BCMA CAR-T product candidate manufactured at point-of-care, currently in phase 1/2 in relapsed/refractory multiple myeloma. The company has collaboration agreements with Gilead Sciences, Inc.; and AbbVie S.à r.l. Galapagos NV was incorporated in 1999 and is headquartered in Mechelen, Belgium.