Financial Review: NRx Pharmaceuticals (NASDAQ:NRXP) & Graybug Vision (NASDAQ:GRAY)

Graybug Vision (NASDAQ:GRAY) and NRx Pharmaceuticals (NASDAQ:NRXP) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Valuation & Earnings

This table compares Graybug Vision and NRx Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Graybug Vision	N/A	N/A	-$35.60 million	($24.23)	-0.16
NRx Pharmaceuticals	N/A	N/A	-$30.15 million	($3.14)	-0.78

NRx Pharmaceuticals is trading at a lower price-to-earnings ratio than Graybug Vision, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Graybug Vision has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, NRx Pharmaceuticals has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Graybug Vision and NRx Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Graybug Vision	0	0	0	0	N/A
NRx Pharmaceuticals	0	0	1	0	3.00

NRx Pharmaceuticals has a consensus price target of $43.00, suggesting a potential upside of 1,662.30%. Given NRx Pharmaceuticals’ higher probable upside, analysts clearly believe NRx Pharmaceuticals is more favorable than Graybug Vision.

Profitability

This table compares Graybug Vision and NRx Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Graybug Vision	N/A	-77.61%	-71.34%
NRx Pharmaceuticals	N/A	N/A	-260.31%

Insider & Institutional Ownership

49.9% of Graybug Vision shares are owned by institutional investors. Comparatively, 4.3% of NRx Pharmaceuticals shares are owned by institutional investors. 7.9% of Graybug Vision shares are owned by insiders. Comparatively, 21.1% of NRx Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

NRx Pharmaceuticals beats Graybug Vision on 7 of the 10 factors compared between the two stocks.

About Graybug Vision

Graybug Vision, Inc., a clinical-stage biopharmaceutical company, focuses on the development of medicines for the treatment of diseases of the retina and optic nerve. The company's lead product candidate is GB-102, an intravitreal injection of a microparticle depot formulation of sunitinib that is in Phase I/IIa and IIb clinical trials for the treatment of wet age-related macular degeneration, as well as in Phase IIa clinical trial to treat diabetic macular edema. It also develops GB-102, for the treatment of diabetic retinopathy; and GB-401, an intravitreally injected implant formulation of a beta-adrenergic receptor inhibitor to treat primary open-angle glaucoma. The company was formerly known as Graybug LLC and changed its name to Graybug Vision, Inc. in 2016. Graybug Vision, Inc. was incorporated in 2011 and is based in Redwood City, California.

About NRx Pharmaceuticals

NRx Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops novel therapeutics for the treatment of central nervous system disorders, including suicidal depression, post-traumatic stress disorder, and chronic pain. Its products include NRX-101 (D-cycloserine/Lurasidone), an oral, fixed dosed combination of D-cycloserine and lurasidone that earned FDA-designated breakthrough therapy for suicidal treatment-resistant bipolar depression; and NRX-100 (ketamine), which has been awarded FDA fast track designation for the treatment of severe bipolar depression with acute suicidal ideation and behavior. The company has a partnership with Alvogen Inc. and Lotus Pharmaceutical Company; development and manufacturing agreement with Nephron Pharmaceuticals, Inc. and Alcami; license agreement with Apkarian Technologies; development and license agreement with Glytech; license agreement with Sarah Herzog Memorial Hospital. The company was founded in 2015 and is based in Wilmington, Delaware.