RedHill Biopharma (NASDAQ:RDHL) & Iterum Therapeutics (NASDAQ:ITRM) Critical Survey

RedHill Biopharma (NASDAQ:RDHL) and Iterum Therapeutics (NASDAQ:ITRM) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Volatility and Risk

RedHill Biopharma has a beta of 3.45, suggesting that its share price is 245% more volatile than the S&P 500. Comparatively, Iterum Therapeutics has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500.

Insider & Institutional Ownership

7.2% of RedHill Biopharma shares are owned by institutional investors. Comparatively, 9.2% of Iterum Therapeutics shares are owned by institutional investors. 6.8% of RedHill Biopharma shares are owned by insiders. Comparatively, 5.4% of Iterum Therapeutics shares are owned by 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.

Analyst Recommendations

This is a summary of current ratings and price targets for RedHill Biopharma and Iterum Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RedHill Biopharma	0	0	0	0	N/A
Iterum Therapeutics	0	0	1	0	3.00

Iterum Therapeutics has a consensus price target of $6.00, indicating a potential upside of 259.28%. Given Iterum Therapeutics’ higher probable upside, analysts clearly believe Iterum Therapeutics is more favorable than RedHill Biopharma.

Profitability

This table compares RedHill Biopharma and Iterum Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RedHill Biopharma	N/A	N/A	N/A
Iterum Therapeutics	N/A	-664.00%	-87.64%

Earnings & Valuation

This table compares RedHill Biopharma and Iterum Therapeutics’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RedHill Biopharma	$6.53 million	1.95	$23.92 million	N/A	N/A
Iterum Therapeutics	N/A	N/A	-$38.37 million	($2.97)	-0.56

RedHill Biopharma has higher revenue and earnings than Iterum Therapeutics.

Summary

RedHill Biopharma beats Iterum Therapeutics on 6 of the 9 factors compared between the two stocks.

About RedHill Biopharma

RedHill Biopharma Ltd., a specialty biopharmaceutical company, primarily focuses on gastrointestinal and infectious diseases. The company promotes gastrointestinal drugs, including Movantik for opioid-induced constipation in adults with chronic non-cancer pain; Talicia for the treatment of Helicobacter pylori infection in adults; and Aemcolo for the treatment of travelers' diarrhea in adults. Its clinical late-stage investigational development programs include RHB-204, which is in Phase 3 study for pulmonary nontuberculous mycobacteria infections; opaganib (Yeliva), an SK2 selective inhibitor, which has completed Phase 2 study to treat patients with SARS-CoV-2 severe COVID-19 pneumonia, in Phase 2 study to treat advanced unresectable cholangiocarcinoma, and in investigator-sponsored Phase 2 study to treat prostate cancer; RHB-107, which is in Phase 2/3 study to treat outpatients infected with COVID-19 disease, and preclinical evaluation study to treat advanced unresectable cholangiocarcinoma, as well as has completed Phase 2 study to treat gastrointestinal and other solid tumors; and RHB-104, which is in Phase 3 studies for Crohn's disease; RHB-102 (Bekinda) that is in Phase 3 studies for acute gastroenteritis and gastritis. RedHill Biopharma Ltd. was incorporated in 2009 and is headquartered in Tel Aviv, Israel.

About Iterum Therapeutics

Iterum Therapeutics plc, a clinical-stage pharmaceutical company, engages in developing and commercializing anti-infectives in Ireland, Bermuda, and the United States. It is developing sulopenem, a novel anti-infective compound with oral and IV formulations that is in Phase III clinical trials for the treatment of uncomplicated urinary tract infections, complicated urinary tract infections, and complicated intra-abdominal infections. The company was incorporated in 2015 and is headquartered in Dublin, Ireland.