Critical Analysis: Genprex (NASDAQ:GNPX) vs. Spruce Biosciences (NASDAQ:SPRB)

Genprex (NASDAQ:GNPX) and Spruce Biosciences (NASDAQ:SPRB) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Genprex and Spruce Biosciences, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genprex	0	0	1	0	3.00
Spruce Biosciences	0	6	2	0	2.25

Genprex currently has a consensus price target of $10.00, indicating a potential upside of 378.47%. Spruce Biosciences has a consensus price target of $5.00, indicating a potential upside of 850.93%. Given Spruce Biosciences’ higher probable upside, analysts clearly believe Spruce Biosciences is more favorable than Genprex.

Volatility and Risk

Genprex has a beta of -1.3, suggesting that its share price is 230% less volatile than the S&P 500. Comparatively, Spruce Biosciences has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500.

Institutional and Insider Ownership

14.1% of Genprex shares are held by institutional investors. Comparatively, 91.7% of Spruce Biosciences shares are held by institutional investors. 8.5% of Genprex shares are held by insiders. Comparatively, 9.1% of Spruce Biosciences shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Genprex and Spruce Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genprex	N/A	-318.57%	-224.95%
Spruce Biosciences	-450.38%	-59.94%	-45.38%

Earnings and Valuation

This table compares Genprex and Spruce Biosciences”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genprex	N/A	N/A	-$30.86 million	N/A	N/A
Spruce Biosciences	$9.57 million	2.27	-$47.92 million	($1.03)	-0.51

Genprex has higher earnings, but lower revenue than Spruce Biosciences.

Summary

Spruce Biosciences beats Genprex on 8 of the 11 factors compared between the two stocks.

About Genprex

Genprex, Inc., a clinical-stage gene therapy company, focuses on developing gene-based therapies for patients with cancer and diabetes in the United States. The company's lead product candidate is REQORSA (GPX-001), which is in preclinical trials to treat non-small cell lung cancer and small cell lung cancer; and GPX-002, which is in preclinical trials to treat type 1 and type 2 diabetes. Its product pipeline comprises Acclaim-1, which is in phase 2a clinical trial for the treatment of non-small cell lung cancer; Acclaim-2, which is in phase phase 1/2 clinical trial for the treatment of non-small cell lung cancer; and Acclaim-3, which is in phase 1/2 clinical trial for the treatment of small cell lung cancer. The company also develops ONC-001, REQORSA as a monotherapy, which is in phase 1 clinical trial to treat advance non-small cell lung cancer; and ONC-002, REQORSA with Tarceva, which is in phase 2 clinical trial to treat non-small cell lung cancer. Genprex, Inc. was incorporated in 2009 and is headquartered in Austin, Texas.

About Spruce Biosciences

Spruce Biosciences, Inc., a biopharmaceutical company, focuses on developing and commercializing novel therapies for rare endocrine disorders. The company engages in developing tildacerfont, a non-steroidal therapy to enhance disease control and reduce steroid burden for patients suffering from congenital adrenal hyperplasia (CAH), which is in Phase 2b clinical trial; and to evaluate glucocorticoid reduction in adult patients with classic CAH that is Phase 2b clinical trial. It is also developing tildacerfont for the treatment of pediatric classic congenital adrenal hyperplasia in children that is in Phase 2 clinical trial; and for females with polycystic ovary syndrome, which is in Phase 2 clinical trial. Spruce Biosciences, Inc. has a license agreement with Eli Lilly and Company to research, develop, and commercialize compounds for various pharmaceutical uses; and collaboration and license agreement with Kaken Pharmaceutical Co. Ltd. to develop, manufacture, and commercialize tildacerfont for the treatment of CAH in Japan. The company was incorporated in 2014 and is headquartered in South San Francisco, California.