Roivant Sciences (NASDAQ:ROIV) vs. Dermata Therapeutics (NASDAQ:DRMA) Critical Comparison

Roivant Sciences (NASDAQ:ROIV) and Dermata Therapeutics (NASDAQ:DRMA) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Roivant Sciences and Dermata Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Roivant Sciences	3,484.86%	-25.05%	-20.98%
Dermata Therapeutics	N/A	-141.27%	-119.03%

Valuation and Earnings

This table compares Roivant Sciences and Dermata Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roivant Sciences	$124.79 million	63.93	$4.35 billion	$5.06	2.13
Dermata Therapeutics	N/A	N/A	-$7.80 million	($27.74)	-0.08

Roivant Sciences has higher revenue and earnings than Dermata Therapeutics. Dermata Therapeutics is trading at a lower price-to-earnings ratio than Roivant Sciences, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Roivant Sciences has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, Dermata Therapeutics has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Institutional and Insider Ownership

64.8% of Roivant Sciences shares are owned by institutional investors. Comparatively, 8.7% of Dermata Therapeutics shares are owned by institutional investors. 4.6% of Roivant Sciences shares are owned by insiders. Comparatively, 9.4% of Dermata Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Roivant Sciences and Dermata Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roivant Sciences	0	1	9	0	2.90
Dermata Therapeutics	0	0	0	0	N/A

Roivant Sciences currently has a consensus price target of $17.10, suggesting a potential upside of 58.33%. Given Roivant Sciences’ higher possible upside, equities analysts clearly believe Roivant Sciences is more favorable than Dermata Therapeutics.

Summary

Roivant Sciences beats Dermata Therapeutics on 11 of the 12 factors compared between the two stocks.

About Roivant Sciences

Roivant Sciences Ltd., a commercial-stage biopharmaceutical company, engages in the development and commercialization of medicines for inflammation and immunology areas. The company provides Vants, a model to develop and commercialize its medicines and technologies focusing on biopharmaceutical businesses, discovery-stage companies, and health technology startups. It develops VTAMA, a novel topical for the treatment of psoriasis and atopic dermatitis; batoclimab and IMVT-1402, the fully human monoclonal antibodies targeting the neonatal Fc receptor across various IgG-mediated autoimmune indications; and RVT-3101, an anti-TL1A antibody for ulcerative colitis and Crohn's disease. The company was founded in 2014 and is based in London, the United Kingdom.

About Dermata Therapeutics

Dermata Therapeutics, Inc., a late-stage medical dermatology company, focuses on identifying, developing, and commercializing pharmaceutical product candidates for the treatment of medical and aesthetic skin conditions and diseases. The company's lead product candidate is DMT310, which has completed Phase IIb clinical trial for treatment of moderate-to-severe acne; and Phase Ib proof of concept (POC) trial for Mild-to-Moderate Psoriasis, as well as is in a Phase 2 clinical trial for treatment of moderate-to-severe rosacea. It is also developing DMT410 that has completed Phase Ib POC trials for the treatment of anxillary hyperhidrosis and aesthetic conditions. Dermata Therapeutics, Inc. was incorporated in 2014 and is headquartered in San Diego, California.