Analyzing Outlook Therapeutics (NASDAQ:OTLK) & Scilex (NASDAQ:SCLX)

Outlook Therapeutics (NASDAQ:OTLK) and Scilex (NASDAQ:SCLX) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Insider & Institutional Ownership

11.2% of Outlook Therapeutics shares are owned by institutional investors. Comparatively, 69.7% of Scilex shares are owned by institutional investors. 3.4% of Outlook Therapeutics shares are owned by insiders. Comparatively, 8.7% of Scilex shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Outlook Therapeutics and Scilex”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Outlook Therapeutics	N/A	N/A	-$75.37 million	($8.94)	-0.19
Scilex	$46.74 million	1.84	-$114.33 million	($0.83)	-0.43

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

Profitability

This table compares Outlook Therapeutics and Scilex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Outlook Therapeutics	N/A	N/A	-189.13%
Scilex	-159.10%	N/A	-93.65%

Volatility & Risk

Outlook Therapeutics has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Scilex has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Outlook Therapeutics and Scilex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Outlook Therapeutics	0	1	5	0	2.83
Scilex	0	0	4	0	3.00

Outlook Therapeutics presently has a consensus price target of $27.40, indicating a potential upside of 1,540.72%. Scilex has a consensus price target of $14.00, indicating a potential upside of 3,862.64%. Given Scilex’s stronger consensus rating and higher possible upside, analysts plainly believe Scilex is more favorable than Outlook Therapeutics.

Summary

Scilex beats Outlook Therapeutics on 8 of the 11 factors compared between the two stocks.

About Outlook Therapeutics

Outlook Therapeutics, Inc., operates as a clinical-stage biopharmaceutical company, focuses on developing and commercializing monoclonal antibodies for various ophthalmic indications. Its lead product candidate is ONS-5010, an ophthalmic formulation of bevacizumab product candidate that is in Phase-III clinical trial for the treatment of wet age-related macular degeneration and other retina diseases. Outlook Therapeutics, Inc. has collaboration and license agreements with BioLexis Pte. Ltd. and Zhejiang Huahai Pharmaceutical Co., Ltd. The company was formerly known as Oncobiologics, Inc. and changed its name to Outlook Therapeutics, Inc. in November 2018. Outlook Therapeutics, Inc. was incorporated in 2010 and is based in Iselin, New Jersey.

About Scilex

Scilex Holding Company focuses on acquiring, developing, and commercializing non-opioid pain management products for the treatment of acute and chronic pain. Its commercial products include ZTlido (lidocaine topical system) 1.8% (ZTlido), a prescription lidocaine topical product for the relief of neuropathic pain associated with postherpetic neuralgia (PHN), which is a form of post-shingles nerve pain; ELYXYB, a ready-to-use oral solution for the acute treatment of migraine with or without aura in adults; and GLOPERBA, a liquid oral version of the anti-gout medicine colchicine indicated for the prophylaxis of painful gout flares in adults. The company is also developing three product candidates, including SP-102 (10 mg dexamethasone sodium phosphate viscous gel) (SEMDEXA), a novel viscous gel formulation of a used corticosteroid for epidural injections, which has completed a Phase 3 study to treat lumbosacral radicular pain or sciatica; SP-103 (lidocaine topical system) 5.4% (SP-103), a formulation of ZTlido for the treatment of chronic neck pain and low back pain (LBP) that has completed a Phase 2 trial; and SP-104 (4.5 mg low-dose naltrexone hydrochloride delayed-release capsules) (SP-104), a novel low-dose delayed-release naltrexone hydrochloride, which has completed Phase 1 trials for the treatment of fibromyalgia. The company is headquartered in Palo Alto, California.