Financial Analysis: Anavex Life Sciences (NASDAQ:AVXL) & Surrozen (NASDAQ:SRZN)

Surrozen (NASDAQ:SRZN) and Anavex Life Sciences (NASDAQ:AVXL) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Institutional and Insider Ownership

66.6% of Surrozen shares are owned by institutional investors. Comparatively, 31.5% of Anavex Life Sciences shares are owned by institutional investors. 43.5% of Surrozen shares are owned by insiders. Comparatively, 11.0% of Anavex Life Sciences shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Surrozen and Anavex Life Sciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Surrozen	N/A	-120.51%	-54.68%
Anavex Life Sciences	N/A	-37.50%	-34.08%

Earnings and Valuation

This table compares Surrozen and Anavex Life Sciences”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surrozen	$10.00 million	3.80	-$43.04 million	N/A	N/A
Anavex Life Sciences	N/A	N/A	-$43.00 million	($0.55)	-15.87

Anavex Life Sciences has lower revenue, but higher earnings than Surrozen.

Analyst Ratings

This is a summary of current recommendations and price targets for Surrozen and Anavex Life Sciences, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surrozen	0	0	2	0	3.00
Anavex Life Sciences	0	0	2	1	3.33

Surrozen currently has a consensus target price of $38.50, suggesting a potential upside of 229.62%. Anavex Life Sciences has a consensus target price of $44.00, suggesting a potential upside of 404.01%. Given Anavex Life Sciences’ stronger consensus rating and higher probable upside, analysts plainly believe Anavex Life Sciences is more favorable than Surrozen.

Volatility and Risk

Surrozen has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Anavex Life Sciences has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Summary

Anavex Life Sciences beats Surrozen on 6 of the 10 factors compared between the two stocks.

About Surrozen

Surrozen, Inc., a clinical stage biotechnology company, discovers and develops drug candidates to selectively modulate the Wnt pathway for tissue repair. The company is developing antibody-based therapeutics which targets various disease areas, including diseases of the intestine, liver, retina, cornea, lung, kidney, cochlea, skin, pancreas, and central nervous system. Its products in pipeline include SZN-043, a hepatocyte-specific R-spondin mimetic bispecific fusion protein, which is in Phase 1b clinical trial for the treatment of severe liver diseases, including alcohol-associated hepatitis. The company develops SZN-413, a Fzd4 targeted bi-specific antibody for the treatment of retinal vascular associated diseases. Surrozen, Inc. has collaboration and license agreement with Boehringer Ingelheim International GmbH to research, develop, and commercialize Fzd4 bi-specific antibodies. Surrozen, Inc. is based in South San Francisco, California.

About Anavex Life Sciences

Anavex Life Sciences Corp., a clinical stage biopharmaceutical company, engages in the development of therapeutics for the treatment of central nervous system diseases. Its lead product candidate is ANAVEX 2-73 for the treatment of Alzheimer's disease and Parkinson's disease, as well as other central nervous system diseases, including rare diseases, such as Rett syndrome, a rare severe neurological monogenic disorder; and infantile spasms, Fragile X syndrome, and Angelman syndrome. The company's drug candidate also comprises ANAVEX 3-71, which is in clinical trial for the treatment of schizophrenia, frontotemporal dementia, and Alzheimer's disease. Its preclinical drug candidates include ANAVEX 1-41 for the treatment of depression, stroke, and neurogenerative disease; ANAVEX 1066 for the potential treatment of neuropathic and visceral pain; and ANAVEX 1037 to treat prostate and pancreatic cancer. The company was incorporated in 2004 and is headquartered in New York, New York.