Adial Pharmaceuticals (NASDAQ:ADIL) and Galapagos (NASDAQ:GLPG) Head to Head Analysis

by · The Cerbat Gem

Galapagos (NASDAQ:GLPGGet Free Report) and Adial Pharmaceuticals (NASDAQ:ADILGet Free Report) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Risk & Volatility

Galapagos has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500. Comparatively, Adial Pharmaceuticals has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Galapagos and Adial Pharmaceuticals, as provided by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Galapagos14001.80
Adial Pharmaceuticals0000N/A

Galapagos currently has a consensus target price of $31.00, suggesting a potential upside of 4.03%. Given Galapagos’ higher probable upside, research analysts plainly believe Galapagos is more favorable than Adial Pharmaceuticals.

Insider & Institutional Ownership

32.5% of Galapagos shares are owned by institutional investors. Comparatively, 16.4% of Adial Pharmaceuticals shares are owned by institutional investors. 2.9% of Galapagos shares are owned by insiders. Comparatively, 14.5% of Adial Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Galapagos and Adial Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Galapagos$261.40 million7.51$229.12 millionN/AN/A
Adial PharmaceuticalsN/AN/A-$5.12 millionN/AN/A

Galapagos has higher revenue and earnings than Adial Pharmaceuticals.

Profitability

This table compares Galapagos and Adial Pharmaceuticals’ net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
GalapagosN/AN/AN/A
Adial PharmaceuticalsN/A-183.64%-160.59%

Summary

Galapagos beats Adial Pharmaceuticals on 6 of the 8 factors compared between the two stocks.

About Galapagos

(Get Free Report)

Galapagos NV, a biotechnology company, develops medicines focusing on oncology and immunology primarily in the United States and Europe. The company's pipeline products comprise GLPG3667 that has completed phase 1b trial; GLPG5101, a CD19 CAR-T product candidate manufactured at point-of-care, currently in Phase1/2 trial in relapsed/refractory non-hodgkin lymphoma; GLPG5201, a CD19 CAR-T product candidates manufactured at point-of-care, currently in phase 1/2 trial in replapsed/refractory chronic lymphocytic leukemia; and GLPG5301, a BCMA CAR-T product candidate manufactured at point-of-care, currently in phase 1/2 in relapsed/refractory multiple myeloma. The company has collaboration agreements with Gilead Sciences, Inc.; and AbbVie S.à r.l. Galapagos NV was incorporated in 1999 and is headquartered in Mechelen, Belgium.

About Adial Pharmaceuticals

(Get Free Report)

Adial Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development of therapeutics for the treatment or prevention of addiction and related disorders. Its lead product is AD04, a serotonin-3 antagonist, which is in Phase III clinical trial for the treatment of alcohol use disorder. The company also focuses on developing drug candidates for non-opioid pain reduction and other diseases and disorders. Adial Pharmaceuticals, Inc. was founded in 2010 and is based in Charlottesville, Virginia.