Financial Analysis: Verve Therapeutics (NASDAQ:VERV) and ANI Pharmaceuticals (NASDAQ:ANIP)

Verve Therapeutics (NASDAQ:VERV) and ANI Pharmaceuticals (NASDAQ:ANIP) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Risk & Volatility

Verve Therapeutics has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500. Comparatively, ANI Pharmaceuticals has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.

Profitability

This table compares Verve Therapeutics and ANI Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Verve Therapeutics	-1,226.51%	-37.35%	-29.31%
ANI Pharmaceuticals	6.87%	17.15%	8.29%

Insider & Institutional Ownership

97.1% of Verve Therapeutics shares are owned by institutional investors. Comparatively, 76.1% of ANI Pharmaceuticals shares are owned by institutional investors. 19.3% of Verve Therapeutics shares are owned by company insiders. Comparatively, 12.7% of ANI Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Verve Therapeutics and ANI Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verve Therapeutics	0	1	5	0	2.83
ANI Pharmaceuticals	0	1	3	0	2.75

Verve Therapeutics currently has a consensus price target of $30.40, suggesting a potential upside of 509.22%. ANI Pharmaceuticals has a consensus price target of $82.75, suggesting a potential upside of 42.92%. Given Verve Therapeutics’ stronger consensus rating and higher probable upside, equities analysts plainly believe Verve Therapeutics is more favorable than ANI Pharmaceuticals.

Valuation & Earnings

This table compares Verve Therapeutics and ANI Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Verve Therapeutics	$16.05 million	26.11	-$200.07 million	($2.87)	-1.74
ANI Pharmaceuticals	$538.95 million	2.25	$18.78 million	$1.60	36.19

ANI Pharmaceuticals has higher revenue and earnings than Verve Therapeutics. Verve Therapeutics is trading at a lower price-to-earnings ratio than ANI Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

About Verve Therapeutics

Verve Therapeutics, Inc., a clinical stage genetic medicines company, engages in developing gene editing medicines for patients to treat cardiovascular diseases in the United States. The company's lead product candidate is VERVE-101, a single-course gene editing treatment that permanently turns off the PCSK9 gene in the liver; and VERVE-102, a product candidate that targets the PCSK9 gene for the treatment of HeFH. It engages in the development of ANGPTL3 program to permanently turn off the ANGPTL3 gene in the liver. It has a collaboration and license agreement with Beam Therapeutics Inc.; a development and option agreement with Acuitas Therapeutics, Inc.; and a Cas9 license agreement with The Broad Institute and the President and Fellows of Harvard College. The company was formerly known as Endcadia, Inc. and changed its name to Verve Therapeutics, Inc. in January 2019. Verve Therapeutics, Inc. was incorporated in 2018 and is headquartered in Cambridge, Massachusetts.

About ANI Pharmaceuticals

ANI Pharmaceuticals, Inc., a biopharmaceutical company, develops, manufactures, and markets branded and generic prescription pharmaceuticals in the United States and Canada. The company manufactures oral solid dose products; semi-solids, liquids, and topicals; controlled substances; and potent products, as well as performs contract development and manufacturing of pharmaceutical products. It markets its products through retail pharmacy chains, wholesalers, distributors and mail order pharmacies, group purchasing organizations, specialty pharmacies, and hospitals. ANI Pharmaceuticals, Inc. was incorporated in 2001 and is headquartered in Baudette, Minnesota.