Comparing RedHill Biopharma (NASDAQ:RDHL) & Lifecore Biomedical (NASDAQ:LFCR)

Lifecore Biomedical (NASDAQ:LFCR) and RedHill Biopharma (NASDAQ:RDHL) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Profitability

This table compares Lifecore Biomedical and RedHill Biopharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lifecore Biomedical	-71.36%	-79.34%	-19.09%
RedHill Biopharma	354.95%	-328.99%	71.39%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Lifecore Biomedical and RedHill Biopharma, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lifecore Biomedical	0	1	1	0	2.50
RedHill Biopharma	0	0	0	0	N/A

Lifecore Biomedical presently has a consensus price target of $9.50, suggesting a potential upside of 16.42%. Given Lifecore Biomedical’s higher possible upside, analysts plainly believe Lifecore Biomedical is more favorable than RedHill Biopharma.

Insider and Institutional Ownership

75.9% of Lifecore Biomedical shares are held by institutional investors. Comparatively, 6.9% of RedHill Biopharma shares are held by institutional investors. 14.6% of Lifecore Biomedical shares are held by insiders. Comparatively, 6.8% of RedHill Biopharma shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Lifecore Biomedical and RedHill Biopharma’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lifecore Biomedical	$103.27 million	2.40	-$102.19 million	($3.35)	-2.44
RedHill Biopharma	$61.80 million	0.08	-$71.67 million	N/A	N/A

RedHill Biopharma has lower revenue, but higher earnings than Lifecore Biomedical.

Risk & Volatility

Lifecore Biomedical has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, RedHill Biopharma has a beta of 2, meaning that its stock price is 100% more volatile than the S&P 500.

Summary

Lifecore Biomedical beats RedHill Biopharma on 7 of the 11 factors compared between the two stocks.

About Lifecore Biomedical

Lifecore Biomedical, Inc., together with its subsidiaries, operates as an integrated contract development and manufacturing organization in the United States and internationally. The company operates through Lifecore, Curation Foods, and Other segments. The Lifecore segment engages in the manufacture of pharmaceutical-grade sodium hyaluronate (HA) in bulk form, as well as formulated and filled syringes and vials for injectable products used in treating a range of medical conditions and procedures. It also provides services, including technology development, material component changes, analytical method development, formulation development, pilot studies, stability studies, process validation, and production of materials for clinical studies to its partners for HA-based and non-HA based aseptically formulated and filled products. This segment sells its non-HA products for medical use primarily in the ophthalmic, orthopedic, and other markets. The Curation Foods segment engages in processing, marketing, and selling of olive oils and wine vinegars under the O brand; and guacamole and avocado food products under the Yucatan and Cabo Fresh brands, as well as various private labels. The company was formerly known as Landec Corporation and changed its name to Lifecore Biomedical, Inc. in November 2022. Lifecore Biomedical, Inc. was incorporated in 1986 and is based in Chaska, Minnesota.

About RedHill Biopharma

RedHill Biopharma Ltd., a specialty biopharmaceutical company, primarily focuses on gastrointestinal and infectious diseases. The company promotes gastrointestinal drugs, including Movantik for opioid-induced constipation in adults with chronic non-cancer pain; Talicia for the treatment of Helicobacter pylori infection in adults; and Aemcolo for the treatment of travelers' diarrhea in adults. Its clinical late-stage investigational development programs include RHB-204, which is in Phase 3 study for pulmonary nontuberculous mycobacteria infections; opaganib (Yeliva), an SK2 selective inhibitor, which has completed Phase 2 study to treat patients with SARS-CoV-2 severe COVID-19 pneumonia, in Phase 2 study to treat advanced unresectable cholangiocarcinoma, and in investigator-sponsored Phase 2 study to treat prostate cancer; RHB-107, which is in Phase 2/3 study to treat outpatients infected with COVID-19 disease, and preclinical evaluation study to treat advanced unresectable cholangiocarcinoma, as well as has completed Phase 2 study to treat gastrointestinal and other solid tumors; and RHB-104, which is in Phase 3 studies for Crohn's disease; RHB-102 (Bekinda) that is in Phase 3 studies for acute gastroenteritis and gastritis. RedHill Biopharma Ltd. was incorporated in 2009 and is headquartered in Tel Aviv, Israel.