Financial Contrast: Minerva Neurosciences (NASDAQ:NERV) and OptiNose (NASDAQ:OPTN)

Minerva Neurosciences (NASDAQ:NERV) and OptiNose (NASDAQ:OPTN) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Volatility & Risk

Minerva Neurosciences has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500. Comparatively, OptiNose has a beta of -0.88, meaning that its stock price is 188% less volatile than the S&P 500.

Profitability

This table compares Minerva Neurosciences and OptiNose’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Minerva Neurosciences	N/A	N/A	-6.74%
OptiNose	-41.16%	N/A	-27.42%

Institutional and Insider Ownership

34.6% of Minerva Neurosciences shares are owned by institutional investors. Comparatively, 85.6% of OptiNose shares are owned by institutional investors. 8.6% of Minerva Neurosciences shares are owned by company insiders. Comparatively, 2.3% of OptiNose shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Minerva Neurosciences and OptiNose”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Minerva Neurosciences	N/A	N/A	-$30.00 million	$0.19	7.21
OptiNose	$78.23 million	1.17	-$35.48 million	($2.88)	-3.16

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

Analyst Recommendations

This is a summary of current ratings and price targets for Minerva Neurosciences and OptiNose, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Minerva Neurosciences	0	1	0	0	2.00
OptiNose	0	3	0	0	2.00

Minerva Neurosciences presently has a consensus price target of $5.00, indicating a potential upside of 264.96%. OptiNose has a consensus price target of $9.00, indicating a potential downside of 1.10%. Given Minerva Neurosciences’ higher possible upside, analysts clearly believe Minerva Neurosciences is more favorable than OptiNose.

Summary

Minerva Neurosciences beats OptiNose on 7 of the 10 factors compared between the two stocks.

About Minerva Neurosciences

Minerva Neurosciences, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of product candidates for the treatment of central nervous system diseases. Its lead product candidate is roluperidone (MIN-101) for the treatment of negative symptoms in patients with schizophrenia, currently submitted an New Drug Application (NDA); and MIN-301, a soluble recombinant form of the neuregulin-1b1 protein for the treatment of Parkinson's disease and other neurodegenerative disorders. The company has a license agreement with Mitsubishi Tanabe Pharma Corporation to develop, sell, and import roluperidone globally excluding Asia. Minerva Neurosciences, Inc. was incorporated in 2007 and is based in Burlington, Massachusetts.

About OptiNose

OptiNose, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of products for patients treated by ear, nose, throat, and allergy specialists in the United States. The company offers XHANCE, a therapeutic product utilizing its proprietary exhalation delivery system (EDS) that delivers a topically acting corticosteroid for the treatment of chronic rhinosinusitis with nasal polyps, as well as is in Phase IIIb clinical trial for treatment of chronic sinusitis; and Onzetra Xsail, a powder EDS device. It has a license agreement with Currax Pharmaceuticals LLC for the commercialization of Onzetra Xsail. The company was founded in 2000 and is headquartered in Yardley, Pennsylvania.