Critical Comparison: XOMA Royalty (NASDAQ:XOMA) vs. Nutra Pharma (OTCMKTS:NPHC)

Nutra Pharma (OTCMKTS:NPHC) and XOMA Royalty (NASDAQ:XOMA) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Institutional and Insider Ownership

95.9% of XOMA Royalty shares are held by institutional investors. 61.5% of Nutra Pharma shares are held by insiders. Comparatively, 9.1% of XOMA Royalty shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Nutra Pharma and XOMA Royalty”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nutra Pharma	$600,000.00	1.18	-$1.39 million	N/A	N/A
XOMA Royalty	$28.49 million	12.76	-$13.82 million	$0.74	39.68

Nutra Pharma has higher earnings, but lower revenue than XOMA Royalty.

Analyst Recommendations

This is a breakdown of recent recommendations for Nutra Pharma and XOMA Royalty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nutra Pharma	0	0	0	0	0.00
XOMA Royalty	1	1	3	0	2.40

XOMA Royalty has a consensus price target of $60.60, indicating a potential upside of 106.40%. Given XOMA Royalty’s stronger consensus rating and higher probable upside, analysts plainly believe XOMA Royalty is more favorable than Nutra Pharma.

Volatility and Risk

Nutra Pharma has a beta of -0.75, indicating that its share price is 175% less volatile than the S&P 500. Comparatively, XOMA Royalty has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Profitability

This table compares Nutra Pharma and XOMA Royalty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nutra Pharma	N/A	N/A	N/A
XOMA Royalty	32.28%	2.91%	1.03%

Summary

XOMA Royalty beats Nutra Pharma on 10 of the 12 factors compared between the two stocks.

About Nutra Pharma

Nutra Pharma Corp., a biopharmaceutical company, acquires, licenses, and commercializes pharmaceutical products and technologies, and homeopathic and ethical drugs for the management of pain, neurological disorders, cancer, and autoimmune and infectious diseases primarily in the United States. The company offers Nyloxin and Nyloxin Extra Strength products, which are used as an oral spray for treating lower back pain, migraines, neck aches, shoulder pain, cramps, and neuropathic pain, as well as a topical gel for treating joint pain, and pain associated with arthritis and repetitive stress; Pet Pain-Away, a homeopathic, nonnarcotic, nonaddictive, and overthecounter pain reliever to treat chronic pain in companion animals; Luxury Feet, an over-the-counter pain reliever and antiinflammatory product to treat pain or discomfort due to high heels and stilettos; Nyloxin Military Strength for treating pain to the United States Military and Veteran's Administration; and Equine Pain-Away, an over-the-counter topical pain reliever to relieve pain in horses. It is also involved in developing RPI-78M to treat neurological diseases and autoimmune diseases, including multiple sclerosis, adrenomyeloneuropathy, amyotrophic lateral sclerosis, rheumatoid arthritis, and myasthenia gravis; RPI-MN to treat viral diseases comprising human immunodeficiency virus/AIDS and herpes, as well as for general anti-viral applications; RPI-78 for pain and arthritis; and RPI-70 for pain. The company was incorporated in 2000 and is based in Plantation, Florida.

About XOMA Royalty

XOMA Corporation operates as a biotech royalty aggregator in the United States and the Asia Pacific. It has a portfolio of economic rights to future potential milestone and royalty payments associated with partnered commercial and pre-commercial therapeutic candidates. The company also focuses on early to mid-stage clinical assets primarily in Phase 1 and 2 with commercial sales potential that are licensed to partners; and acquires milestone and royalty revenue streams on late-stage clinical or commercial assets. It has a portfolio with various assets. XOMA Corporation was incorporated in 1981 and is headquartered in Emeryville, California.