Comparing Alterity Therapeutics (NASDAQ:ATHE) & Incannex Healthcare (NASDAQ:IXHL)

Alterity Therapeutics (NASDAQ:ATHE) and Incannex Healthcare (NASDAQ:IXHL) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Earnings and Valuation

This table compares Alterity Therapeutics and Incannex Healthcare”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alterity Therapeutics	N/A	N/A	-$12.54 million	N/A	N/A
Incannex Healthcare	$86,000.00	379.53	-$18.46 million	($1.39)	-1.33

Alterity Therapeutics has higher earnings, but lower revenue than Incannex Healthcare.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Alterity Therapeutics and Incannex Healthcare, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alterity Therapeutics	0	0	2	0	3.00
Incannex Healthcare	0	0	0	0	0.00

Alterity Therapeutics presently has a consensus price target of $6.00, indicating a potential upside of 79.64%. Given Alterity Therapeutics’ stronger consensus rating and higher probable upside, research analysts clearly believe Alterity Therapeutics is more favorable than Incannex Healthcare.

Volatility & Risk

Alterity Therapeutics has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Incannex Healthcare has a beta of 7.54, meaning that its share price is 654% more volatile than the S&P 500.

Profitability

This table compares Alterity Therapeutics and Incannex Healthcare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alterity Therapeutics	N/A	N/A	N/A
Incannex Healthcare	N/A	-182.23%	-127.38%

Institutional and Insider Ownership

2.1% of Alterity Therapeutics shares are owned by institutional investors. Comparatively, 0.4% of Incannex Healthcare shares are owned by institutional investors. 38.8% of Alterity Therapeutics shares are owned by company insiders. Comparatively, 26.5% of Incannex Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Alterity Therapeutics beats Incannex Healthcare on 8 of the 10 factors compared between the two stocks.

About Alterity Therapeutics

Alterity Therapeutics Limited engages in the research and development of therapeutic drugs to treat Alzheimer’s disease, Huntington disease, Parkinson’s disease, and other neurological disorders in Australia. The company’s lead drug candidate is ATH434 that is in Phase I clinical trial for the treatment of Parkinson’s disease. It is also developing ATH434-201, which is in Phase II clinical trial to treat multiple system atrophy early stage; ATH434-202 that is in Phase II clinical trial to treat multiple system atrophy advance; and PBT2 that has completed Phase 2a clinical trial to treat Alzheimer’s disease. The company was formerly known as Prana Biotechnology Limited and changed its name to Alterity Therapeutics Limited in April 2019. Alterity Therapeutics Limited was incorporated in 1997 and is headquartered in Melbourne, Australia.

About Incannex Healthcare

Incannex Healthcare Inc., a clinical stage pharmaceutical development company, engages in the research, development, and sale of medicinal cannabinoid and psychedelic pharmaceutical products and therapies. It develops products for the treatment of obstructive sleep apnoea (OSA), traumatic brain injury (TBI) and concussion, lung inflammation (ARDS, COPD, asthma, bronchitis), rheumatoid arthritis, inflammatory bowel disease, anxiety disorders, addiction disorders, pain, and other indications. The company offers APIRx-1801, an ultrapure tetrahydrocannabinol; APIRx-1802, an ultrapure CBD; and APIRx-1803, an ultrapure cannabigerol. It also develops IHL-42X, which has completed Phase IIb clinical trial for obstructive sleep apnea; Psi-GAD that is in Phase IIa clinical trial for generalized anxiety disorder; MedChew Dronabinol, which has completed Phase Ia clinical trial for nausea and vomiting in chemotherapy; CanChew Plus that has completed Phase IIa clinical trial for irritable bowel syndrome; APIRx-1601, which has completed Phase IIa clinical trial for vitiligo; APIRx-1602 skin that has completed Phase IIa clinical trial for psoriasis; and APIRx-1603, which has completed Phase IIa clinical trial for atopic dermatitis. In addition, its product portfolio includes IHL-675A for inflammatory lung disease, IHL-675A for rheumatoid arthritis, IHL-675A for inflammatory bowel disease, and IHL-216A for traumatic brain injury and concussion, which have completed pre-clinical trials; and MedChew 1401 for pain and spasticity in multiple sclerosis, MedChew GB for post-herpatic neuralgia, MedChew-1502 for Parkinson's disease, MedChew-1503 for dementia, MedChew RL for restless legs syndrome, APIRx 1505 Flotex for chrohn's disease, CanChew RX and SuppoCan (Suppository) for inflammatory bowel disease, CheWell for addiction of cannabis, CanQuit for tobacco smoking cessation, CanQuit O for opioid addiction, APIRx-1701 for glaucoma, suppoCan gastro for IBD, and APIRx-1702 for dry eye syndrome that are in pre-clinical trials. Incannex Healthcare Inc. was incorporated in 2001 and is based in Sydney, Australia.