Seneca Biopharma (NASDAQ:SNCA) and Fennec Pharmaceuticals (NASDAQ:FENC) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.
Insider & Institutional Ownership
3.2% of Seneca Biopharma shares are owned by institutional investors. Comparatively, 37.3% of Fennec Pharmaceuticals shares are owned by institutional investors. 2.1% of Seneca Biopharma shares are owned by company insiders. Comparatively, 9.1% of Fennec Pharmaceuticals 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.
Analyst Ratings
This is a summary of current recommendations for Seneca Biopharma and Fennec Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Seneca Biopharma | 0 | 0 | 0 | 0 | N/A |
| Fennec Pharmaceuticals | 0 | 0 | 3 | 0 | 3.00 |
Fennec Pharmaceuticals has a consensus price target of $17.00, suggesting a potential upside of 100.47%. Given Fennec Pharmaceuticals’ higher possible upside, analysts clearly believe Fennec Pharmaceuticals is more favorable than Seneca Biopharma.
Profitability
This table compares Seneca Biopharma and Fennec Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Seneca Biopharma | -212.36% | -212.68% | -168.53% |
| Fennec Pharmaceuticals | N/A | -107.89% | -95.97% |
Valuation and Earnings
This table compares Seneca Biopharma and Fennec Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Seneca Biopharma | $10,000.00 | 1,293.52 | -$8.35 million | N/A | N/A |
| Fennec Pharmaceuticals | N/A | N/A | -$12.77 million | ($0.64) | -13.25 |
Seneca Biopharma has higher revenue and earnings than Fennec Pharmaceuticals.
Volatility & Risk
Seneca Biopharma has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500. Comparatively, Fennec Pharmaceuticals has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500.
Summary
Fennec Pharmaceuticals beats Seneca Biopharma on 7 of the 10 factors compared between the two stocks.
Seneca Biopharma Company Profile
Seneca Biopharma, Inc., a clinical stage biopharmaceutical company, focuses on the research and development of nervous system therapies based on its proprietary human neuronal stem cells and small molecule compounds. The company's stem cell based technology enables the isolation and expansion of human neural stem cells from various areas of the developing human brain and spinal cord enabling the generation of physiologically relevant human neurons of various types. Its lead product candidate is NSI-189, a chemical entity, which has been completed Phase II clinical trial for the treatment of major depressive disorder, as well as is in preclinical study for the treatment-refractory depression, Angelman Syndrome, Alzheimer's disease, ischemic stroke, diabetic neuropathy, irradiation-induced cognitive deficit, and long-term potentiation enhancement. The company also develops NSI-566, which has completed Phase II clinical trial for treating amyotrophic lateral sclerosis disease; Phase II clinical trial for the treatment of chronic ischemic stroke; and Phase I clinical trials for the treatment of chronic spinal cord injury, as well as is in preclinical study for the traumatic brain injury. In addition, it develops NSI-532, which is in preclinical study for treatment of Alzheimer's disease; and NSI-777 that is in preclinical study for treatment of human demyelinating diseases. The company was formerly known as Neuralstem, Inc. and changed its name to Seneca Biopharma, Inc. in October 2019. Seneca Biopharma, Inc. was founded in 1996 and is headquartered in Germantown, Maryland.
Fennec Pharmaceuticals Company Profile
Fennec Pharmaceuticals Inc., a biopharmaceutical company, develops product candidates for use in the treatment of cancer in the United States. Its lead product candidate is the Sodium Thiosulfate, which has completed the Phase III clinical trial for the prevention of cisplatin induced hearing loss or ototoxicity in children. The company was formerly known as Adherex Technologies Inc. and changed its name to Fennec Pharmaceuticals Inc. in September 2014. Fennec Pharmaceuticals Inc. was founded in 1996 and is based in Research Triangle Park, North Carolina.