Reviewing Roivant Sciences (NASDAQ:ROIV) and Annovis Bio (NYSE:ANVS)

Annovis Bio (NYSE:ANVS) and Roivant Sciences (NASDAQ:ROIV) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Annovis Bio and Roivant Sciences, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Annovis Bio	0	1	4	1	3.00
Roivant Sciences	0	1	7	0	2.88

Annovis Bio currently has a consensus target price of $31.40, indicating a potential upside of 524.25%. Roivant Sciences has a consensus target price of $17.93, indicating a potential upside of 51.55%. Given Annovis Bio’s stronger consensus rating and higher possible upside, equities analysts clearly believe Annovis Bio is more favorable than Roivant Sciences.

Institutional and Insider Ownership

15.8% of Annovis Bio shares are owned by institutional investors. Comparatively, 64.8% of Roivant Sciences shares are owned by institutional investors. 32.3% of Annovis Bio shares are owned by company insiders. Comparatively, 7.9% of Roivant Sciences shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Annovis Bio and Roivant Sciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Annovis Bio	N/A	-876.22%	-311.00%
Roivant Sciences	3,827.42%	-14.65%	-13.19%

Risk and Volatility

Annovis Bio has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500. Comparatively, Roivant Sciences has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Valuation and Earnings

This table compares Annovis Bio and Roivant Sciences”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Annovis Bio	N/A	N/A	-$56.20 million	($4.46)	-1.13
Roivant Sciences	$129.13 million	66.69	$4.35 billion	$5.65	2.09

Roivant Sciences has higher revenue and earnings than Annovis Bio. Annovis Bio is trading at a lower price-to-earnings ratio than Roivant Sciences, indicating that it is currently the more affordable of the two stocks.

Summary

Roivant Sciences beats Annovis Bio on 9 of the 14 factors compared between the two stocks.

About Annovis Bio

Annovis Bio, Inc., a clinical stage drug platform company, develops drugs to treat neurodegeneration. The company's lead product candidate is Buntanetap, which has completed three Phase 1/2 clinical trials for the treatment of Alzheimer's disease (AD), Parkinson's disease, and other chronic neurodegenerative diseases. It is also developing ANVS405, which is in Phase 2 and Phase 3 efficacy studies, an intravenous drug for protecting the brain after traumatic brain injury and/or stroke; and ANVS301, which is in Phase I clinical trials, an orally administered drug to increase cognitive capability in later stages of AD and dementia. The company was incorporated in 2008 and is based in Malvern, Pennsylvania.

About Roivant Sciences

Roivant Sciences Ltd., a commercial-stage biopharmaceutical company, engages in the development and commercialization of medicines for inflammation and immunology areas. The company provides Vants, a model to develop and commercialize its medicines and technologies focusing on biopharmaceutical businesses, discovery-stage companies, and health technology startups. It develops VTAMA, a novel topical for the treatment of psoriasis and atopic dermatitis; batoclimab and IMVT-1402, the fully human monoclonal antibodies targeting the neonatal Fc receptor across various IgG-mediated autoimmune indications; and RVT-3101, an anti-TL1A antibody for ulcerative colitis and Crohn's disease. The company was founded in 2014 and is based in London, the United Kingdom.