Elanco Animal Health (NYSE:ELAN – Get Free Report) and CervoMed (NASDAQ:CRVO – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.
Volatility and Risk
Elanco Animal Health has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500. Comparatively, CervoMed has a beta of -0.64, indicating that its stock price is 164% less volatile than the S&P 500.
Profitability
This table compares Elanco Animal Health and CervoMed’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Elanco Animal Health | -3.96% | 8.13% | 3.99% |
| CervoMed | -672.80% | -156.02% | -128.34% |
Institutional & Insider Ownership
Earnings and Valuation
This table compares Elanco Animal Health and CervoMed”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Elanco Animal Health | $4.71 billion | 2.59 | -$232.00 million | ($0.41) | -59.71 |
| CervoMed | $4.01 million | 9.65 | -$26.97 million | ($3.22) | -0.80 |
CervoMed has lower revenue, but higher earnings than Elanco Animal Health. Elanco Animal Health is trading at a lower price-to-earnings ratio than CervoMed, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations for Elanco Animal Health and CervoMed, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Elanco Animal Health | 1 | 2 | 9 | 1 | 2.77 |
| CervoMed | 1 | 1 | 4 | 1 | 2.71 |
Elanco Animal Health presently has a consensus price target of $29.09, suggesting a potential upside of 18.84%. CervoMed has a consensus price target of $21.00, suggesting a potential upside of 720.31%. Given CervoMed’s higher probable upside, analysts plainly believe CervoMed is more favorable than Elanco Animal Health.
Summary
Elanco Animal Health beats CervoMed on 9 of the 14 factors compared between the two stocks.
About Elanco Animal Health
Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals. It offers pet health disease prevention products, such as parasiticide and vaccine products that protect pets from worms, fleas, and ticks under the Seresto, Advantage, Advantix, and Advocate brands; pet health therapeutics for pain, osteoarthritis, ear infections, cardiovascular, and dermatology indications in canines and felines under the Galliprant and Claro brands; vaccines, antibiotics, parasiticides, and other products for use in poultry and aquaculture production, as well as nutritional health products, including enzymes, probiotics, and prebiotics; and a range of vaccines, antibiotics, implants, parasiticides, and other products used in ruminant and swine production under the Rumensin and Baytril brands. The company sells its products to third-party distributors; veterinarians; and farm animal producers, including beef and dairy farmers, as well as pork, poultry, and aquaculture operations. Elanco Animal Health Incorporated was founded in 1954 and is headquartered in Greenfield, Indiana.
About CervoMed
CervoMed Inc., a biotechnology company, engages in the development and commercialization of treatments for age-related neurologic disorders. Its lead drug candidate is neflamapimod, an orally administered small molecule brain penetrant for the treatment of dementia with Lewy bodies (DLB), Alzheimer's diseases, frontotemporal dementia, and ischemic stroke recovery. The company also develops EIP200 for central nervous system which is in preclinical trials. CervoMed Inc. was founded in 2010 and is headquartered in Boston, Massachusetts.
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