Analyzing NRx Pharmaceuticals (NASDAQ:NRXP) & Ionis Pharmaceuticals (NASDAQ:IONS)

Ionis Pharmaceuticals (NASDAQ:IONS) and NRx Pharmaceuticals (NASDAQ:NRXP) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Volatility and Risk

Ionis Pharmaceuticals has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, NRx Pharmaceuticals has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500.

Institutional and Insider Ownership

93.9% of Ionis Pharmaceuticals shares are held by institutional investors. Comparatively, 4.3% of NRx Pharmaceuticals shares are held by institutional investors. 2.6% of Ionis Pharmaceuticals shares are held by company insiders. Comparatively, 19.0% of NRx Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Ionis Pharmaceuticals and NRx Pharmaceuticals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ionis Pharmaceuticals	$705.00 million	18.89	-$453.90 million	($1.69)	-48.65
NRx Pharmaceuticals	N/A	N/A	-$25.13 million	($2.35)	-0.76

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

Analyst Ratings

This is a breakdown of current recommendations for Ionis Pharmaceuticals and NRx Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ionis Pharmaceuticals	1	3	16	1	2.81
NRx Pharmaceuticals	2	0	4	0	2.33

Ionis Pharmaceuticals presently has a consensus price target of $86.95, indicating a potential upside of 5.75%. NRx Pharmaceuticals has a consensus price target of $36.75, indicating a potential upside of 1,970.42%. Given NRx Pharmaceuticals’ higher probable upside, analysts clearly believe NRx Pharmaceuticals is more favorable than Ionis Pharmaceuticals.

Profitability

This table compares Ionis Pharmaceuticals and NRx Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ionis Pharmaceuticals	-26.45%	-44.26%	-8.65%
NRx Pharmaceuticals	N/A	N/A	-395.06%

About Ionis Pharmaceuticals

Ionis Pharmaceuticals, Inc. discovers and develops RNA-targeted therapeutics in the United States. The company offers SPINRAZA for spinal muscular atrophy (SMA) in pediatric and adult patients; TEGSEDI, an antisense injection for the treatment of polyneuropathy caused by hereditary transthyretin amyloidosis in adults; and WAYLIVRA, an antisense medicine for treatment for familial chylomicronemia syndrome (FCS) and familial partial lipodystrophy. It also develops medicines for various indications that are in phase 3 study, including Eplontersen as a monthly self-administered subcutaneous injection to treat all types of ATTR; Olezarsen for patients with FCS and severe hypertriglyceridemia (SHTG); Donidalorsen for patients with hereditary angioedema; ION363 for patients with amyotrophic lateral sclerosis; Tofersen to inhibit the production of superoxide dismutase 1; Pelacarsen for patients with established cardiovascular disease and elevated lipoprotein(a); and Bepirovirsen to inhibit the production of viral proteins associated with hepatitis B virus. In addition, the company develops IONIS-FB-LRx to inhibit the production of complement factor B and the alternative complement pathway; and ION224 to reduce the production of diacylglycerol acyltransferase 2. It has a strategic collaboration with Biogen for the treatment of neurological disorders; and collaboration and license agreement with Metagenomi, Inc, AstraZeneca, Bayer AG, GlaxoSmithKline plc, Novartis, Roche, Swedish Orphan Biovitrum AB, and PTC Therapeutics. The company was incorporated in 1989 and is based in Carlsbad, California.

About NRx Pharmaceuticals

NRx Pharmaceuticals, Inc., a clinical-stage bio-pharmaceutical company, develops novel therapeutics for the treatment of central nervous system disorders, including suicidal depression, post-traumatic stress disorder, and chronic pain. Its products include NRX-101 (D-cycloserine/Lurasidone), an oral, fixed dosed combination of D-cycloserine and lurasidone that earned food and drug administration-designated breakthrough therapy for suicidal treatment-resistant bipolar depression; and NRX-100 (ketamine), which has been awarded FDA fast track designation for the treatment of severe bipolar depression with acute suicidal ideation and behavior. The company has a partnership with Alvogen Inc. and Lotus Pharmaceutical Company; development and manufacturing agreement with Nephron Pharmaceuticals, Inc. and Alcami; license agreement with Apkarian Technologies; development and license agreement with Glytech; license agreement with Sarah Herzog Memorial Hospital. The company was founded in 2015 and is based in Wilmington, Delaware.