Contrasting InterCure (NASDAQ:INCR) & Equillium (NASDAQ:EQ)

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

Profitability

This table compares Equillium and InterCure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equillium	-19.51%	-36.88%	-17.31%
InterCure	N/A	N/A	N/A

Insider & Institutional Ownership

27.0% of Equillium shares are held by institutional investors. Comparatively, 8.3% of InterCure shares are held by institutional investors. 30.3% of Equillium shares are held by company insiders. Comparatively, 0.2% of InterCure shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Equillium and InterCure”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equillium	$42.62 million	0.91	-$13.34 million	($0.36)	-3.06
InterCure	$272.67 million	0.29	-$16.83 million	$0.13	13.57

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

Analyst Ratings

This is a breakdown of recent recommendations for Equillium and InterCure, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equillium	0	0	1	0	3.00
InterCure	0	0	0	0	N/A

Equillium currently has a consensus price target of $5.00, indicating a potential upside of 354.55%. Given Equillium’s higher possible upside, equities research analysts clearly believe Equillium is more favorable than InterCure.

Risk & Volatility

Equillium has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, InterCure has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.

Summary

Equillium beats InterCure on 7 of the 13 factors compared between the two stocks.

About Equillium

Equillium, Inc., a clinical-stage biotechnology company, develops and sells products to treat severe autoimmune and inflammatory, or immuno-inflammatory disorders with unmet medical need. The company's lead product candidate is itolizumab (EQ001), a first-in-class monoclonal antibody that targets the immune checkpoint receptor CD6, which is in Phase III clinical trials for the treatment of acute graft-versus-host disease; completed Phase I clinical trial for the treatment of ulcerative colitis; and Phase I clinical trial for the treatment of lupus nephritis. It also develops EQ101 completed phase 1/2 for treatment of cutaneous T cell lymphoma and alopecia areata; and EQ302 to treat gastrointestinal indications. In addition, it serves dermatology, gastroenterology, rheumatology, hematology, transplant science, oncology, and pulmonology area. The company was formerly known as Attenuate Biopharmaceuticals, Inc. and changed its name to Equillium, Inc. in May 2017. Equillium, Inc. was incorporated in 2017 and is headquartered in La Jolla, California.

About InterCure

InterCure Ltd., together with its subsidiaries, engages in the research, cultivation, production, and distribution of pharmaceutical-grade cannabis and cannabis-based products for medical use in Israel and internationally. The company offers dried cannabis inflorescences and cannabis extract mixed with oil. It also invests in biomed sector. The company was incorporated in 1994 and is headquartered in Herzliya, Israel.