Innoviva (NASDAQ:INVA) and Tilray Brands (NASDAQ:TLRY) Head to Head Contrast

Innoviva (NASDAQ:INVA) and Tilray Brands (NASDAQ:TLRY) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Profitability

This table compares Innoviva and Tilray Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innoviva	81.19%	28.03%	20.19%
Tilray Brands	-16.91%	-10.39%	-7.38%

Institutional & Insider Ownership

99.1% of Innoviva shares are owned by institutional investors. Comparatively, 9.3% of Tilray Brands shares are owned by institutional investors. 2.0% of Innoviva shares are owned by insiders. Comparatively, 1.6% of Tilray Brands shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Innoviva and Tilray Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innoviva	0	2	4	0	2.67
Tilray Brands	2	2	3	1	2.38

Innoviva presently has a consensus target price of $39.25, indicating a potential upside of 89.25%. Tilray Brands has a consensus target price of $5.90, indicating a potential upside of 80.43%. Given Innoviva’s stronger consensus rating and higher possible upside, equities analysts clearly believe Innoviva is more favorable than Tilray Brands.

Valuation and Earnings

This table compares Innoviva and Tilray Brands”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innoviva	$411.33 million	3.64	$271.17 million	$4.10	5.06
Tilray Brands	$915.45 million	0.49	-$121.40 million	($1.40)	-2.34

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

Risk and Volatility

Innoviva has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, Tilray Brands has a beta of 1.91, meaning that its share price is 91% more volatile than the S&P 500.

Summary

Innoviva beats Tilray Brands on 11 of the 14 factors compared between the two stocks.

About Innoviva

Innoviva, Inc. engages in the development and commercialization of pharmaceutical products in the United States and internationally. The company’s products include RELVAR/BREO ELLIPTA, a once-daily combination medicine consisting of a LABA, vilanterol (VI), an inhaled corticosteroid (ICS), and fluticasone furoate; ANORO ELLIPTA, a once-daily medicine combining a long-acting muscarinic antagonist (LAMA) and umeclidinium bromide (UMEC) with a LABA, VI; GIAPREZA (angiotensin II), a vasoconstrictor to increase blood pressure in adults with septic or other distributive shock; XERAVA (eravacycline) for the treatment of complicated intra-abdominal infections in adults; and XACDURO, a beta lactamase inhibitor for the treatment of hospital-acquired bacterial pneumonia and ventilator-associated bacterial pneumonia. Its development pipeline includes zoliflodacin, a late-stage product candidate, a potential single oral dose cure for the treatment of uncomplicated gonorrhea. Innoviva, Inc. has a strategic partnership with Sarissa Capital Management LP. It has long-acting beta2 agonist (LABA) collaboration agreement with Glaxo Group Limited to develop and commercialize once-daily products for the treatment of chronic obstructive pulmonary disease and asthma. The company was formerly known as Theravance, Inc. and changed its name to Innoviva, Inc. in January 2016. Innoviva, Inc. was incorporated in 1996 and is headquartered in Burlingame, California.

About Tilray Brands

Tilray, Inc. engages in the research, cultivation, processing, and distribution of medical cannabis. The company offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. Tilray, Inc. is headquartered in Canada.