Critical Analysis: Crinetics Pharmaceuticals (NASDAQ:CRNX) versus CV Sciences (OTCMKTS:CVSI)

CV Sciences (OTCMKTS:CVSI) and Crinetics Pharmaceuticals (NASDAQ:CRNX) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Volatility and Risk

CV Sciences has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, Crinetics Pharmaceuticals has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for CV Sciences and Crinetics Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CV Sciences	0	0	0	0	0.00
Crinetics Pharmaceuticals	1	0	8	1	2.90

Crinetics Pharmaceuticals has a consensus target price of $76.13, suggesting a potential upside of 117.50%. Given Crinetics Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Crinetics Pharmaceuticals is more favorable than CV Sciences.

Earnings & Valuation

This table compares CV Sciences and Crinetics Pharmaceuticals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CV Sciences	$13.79 million	0.26	-$960,000.00	N/A	N/A
Crinetics Pharmaceuticals	$7.70 million	479.27	-$465.32 million	($5.13)	-6.82

CV Sciences has higher revenue and earnings than Crinetics Pharmaceuticals.

Institutional and Insider Ownership

98.5% of Crinetics Pharmaceuticals shares are held by institutional investors. 6.7% of CV Sciences shares are held by company insiders. Comparatively, 3.8% of Crinetics Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares CV Sciences and Crinetics Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CV Sciences	-11.15%	-94.61%	-20.85%
Crinetics Pharmaceuticals	-2,747.18%	-43.96%	-39.61%

Summary

Crinetics Pharmaceuticals beats CV Sciences on 7 of the 13 factors compared between the two stocks.

About CV Sciences

CV Sciences, Inc. develops, manufactures, markets, and sells herbal supplements and hemp-based cannabidiol (CBD) in North America. It operates in two segments, Consumer Products and Specialty Pharmaceutical. The company offers its products under the PlusCBD, ProCBD, HappyLane, CVAcute, CVDefense, and PlusCBD Pet brands in the health care market sector, including nutraceutical, beauty care, specialty foods, and pet products through its websites, elect distributors, brick and mortar retailers, and select e-tailers. It is also developing cannabinoids intended to treat medical indications, including CVSI-007 that combines CBD and nicotine for the treatment of smokeless tobacco use and addiction. The company was formerly known as CannaVest Corp. and changed its name to CV Sciences, Inc. in January 2016. CV Sciences, Inc. was incorporated in 2010 and is based in San Diego, California.

About Crinetics Pharmaceuticals

Crinetics Pharmaceuticals, Inc., a clinical-stage pharmaceutical company, focuses on the discovery, development, and commercialization of novel therapeutics for rare endocrine diseases and endocrine-related tumors. The company's lead product candidate is paltusotine, an oral selective nonpeptide somatostatin receptor type 2 agonist, which is in Phase 3 trial for the treatment of acromegaly; and Phase 2 trial for treating carcinoid syndrome associated with neuroendocrine tumors. It is also developing CRN04894, an investigational oral nonpeptide product candidate to antagonize the adrenocorticotrophic hormone (ACTH) receptor that has completed a Phase 1 study for the treatment of diseases caused by excess ACTH, including congenital adrenal hyperplasia and Cushing's disease. In addition, the company is developing antagonists of the parathyroid hormone (PTH) receptor for the treatment of primary hyperparathyroidism and humoral hypercalcemia of malignancy, and other diseases of excess PTH; identified investigational orally available somatostatin receptor type 3 targeted nonpeptide agonists for the treatment of autosomal dominant polycystic kidney disease; and developing thyroid-stimulating hormone receptor antagonists for the treatment of graves' disease and thyroid eye disease, as well as Oral GLP-1 and GIP nonpeptides for the treatment of diabetes and obesity. Crinetics Pharmaceuticals, Inc. was incorporated in 2008 and is headquartered in San Diego, California.