Financial Comparison: Vanda Pharmaceuticals (NASDAQ:VNDA) & Evofem Biosciences (NASDAQ:EVFM)

Evofem Biosciences (NASDAQ:EVFM) and Vanda Pharmaceuticals (NASDAQ:VNDA) are both small-cap healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Evofem Biosciences and Vanda Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evofem Biosciences	0	0	0	0	0.00
Vanda Pharmaceuticals	1	2	5	0	2.50

Vanda Pharmaceuticals has a consensus target price of $13.70, suggesting a potential upside of 159.47%. Given Vanda Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Vanda Pharmaceuticals is more favorable than Evofem Biosciences.

Institutional and Insider Ownership

0.2% of Evofem Biosciences shares are held by institutional investors. Comparatively, 88.1% of Vanda Pharmaceuticals shares are held by institutional investors. 0.0% of Evofem Biosciences shares are held by insiders. Comparatively, 10.7% of Vanda Pharmaceuticals 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.

Volatility & Risk

Evofem Biosciences has a beta of -1.32, suggesting that its share price is 232% less volatile than the S&P 500. Comparatively, Vanda Pharmaceuticals has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.

Valuation & Earnings

This table compares Evofem Biosciences and Vanda Pharmaceuticals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evofem Biosciences	$11.39 million	0.09	$52.98 million	($0.13)	-0.06
Vanda Pharmaceuticals	$216.10 million	1.48	-$220.47 million	($4.63)	-1.14

Evofem Biosciences has higher earnings, but lower revenue than Vanda Pharmaceuticals. Vanda Pharmaceuticals is trading at a lower price-to-earnings ratio than Evofem Biosciences, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Evofem Biosciences and Vanda Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evofem Biosciences	-46.42%	-91.97%	-61.93%
Vanda Pharmaceuticals	-127.41%	-49.81%	-33.29%

Summary

Vanda Pharmaceuticals beats Evofem Biosciences on 10 of the 14 factors compared between the two stocks.

About Evofem Biosciences

Evofem Biosciences, Inc., a biopharmaceutical company, develops and commercializes various products to address unmet needs in women's sexual and reproductive health. Its commercial product is Phexxi, a vaginal gel for the prevention of pregnancy. The company is also involved in the development of EVO100 for the prevention of chlamydia and gonorrhea in Women, and EVO200 for the prevention of recurrent bacterial vaginosis. Evofem Biosciences, Inc. is headquartered in San Diego, California.

About Vanda Pharmaceuticals

Vanda Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of therapies to address high unmet medical needs worldwide. The company’s marketed products include HETLIOZ to treat non-24-hour sleep-wake disorders; and Fanapt oral tablets for the treatment of schizophrenia. Its pipeline products include HETLIOZ (tasimelteon) to treat jet lag disorder, insomnia, delayed sleep phase disorder, sleep disturbances in autism spectrum disorder, and pediatric Non-24; Fanapt (iloperidone) for the treatment of bipolar I disorder and Parkinson’s disease psychosis, as well as a long acting injectable (LAI) formulation to treat schizophrenia; and Tradipitant (VLY-686), a small molecule neurokinin-1 receptor (NK-1R) antagonist to treat gastroparesis, motion sickness, atopic dermatitis, and COVID-19 pneumonia. The company’s pipeline products also include VTR-297, a small molecule histone deacetylase inhibitor to treat hematologic malignancies and with potential use as a treatment for various oncology indications; VQW-765, a small molecule nicotinic acetylcholine receptor partial agonist to treat performance anxiety and psychiatric disorders; VHX-896, an active metabolite of iloperidone; and antisense oligonucleotide molecules. In addition, it offers a portfolio of cystic fibrosis transmembrane conductance regulator activators and inhibitors that include VSJ-110 for the treatment of dry eye and ocular inflammation; and VPO-227 for the treatment of secretory diarrhea disorders comprising cholera. Vanda Pharmaceuticals Inc. was incorporated in 2002 and is headquartered in Washington, the District of Columbia.