Head-To-Head Review: Fennec Pharmaceuticals (NASDAQ:FENC) versus Vitro Diagnostics (OTCMKTS:VODG)

Vitro Diagnostics (OTCMKTS:VODG) and Fennec Pharmaceuticals (NASDAQ:FENC) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Earnings and Valuation

This table compares Vitro Diagnostics and Fennec Pharmaceuticals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vitro Diagnostics	$1.86 million	N/A	-$9.87 million	($2.21)	-0.18
Fennec Pharmaceuticals	$47.54 million	3.77	-$16.05 million	($0.06)	-108.33

Vitro Diagnostics has higher earnings, but lower revenue than Fennec Pharmaceuticals. Fennec Pharmaceuticals is trading at a lower price-to-earnings ratio than Vitro Diagnostics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Vitro Diagnostics and Fennec Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vitro Diagnostics	-531.95%	N/A	-149.85%
Fennec Pharmaceuticals	-2.30%	-53.38%	-2.08%

Insider and Institutional Ownership

55.5% of Fennec Pharmaceuticals shares are held by institutional investors. 27.7% of Vitro Diagnostics shares are held by insiders. Comparatively, 11.0% of Fennec Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Vitro Diagnostics and Fennec Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vitro Diagnostics	0	0	0	0	0.00
Fennec Pharmaceuticals	0	0	3	1	3.25

Fennec Pharmaceuticals has a consensus target price of $13.67, indicating a potential upside of 110.26%. Given Fennec Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Fennec Pharmaceuticals is more favorable than Vitro Diagnostics.

Summary

Fennec Pharmaceuticals beats Vitro Diagnostics on 9 of the 13 factors compared between the two stocks.

About Vitro Diagnostics

Vitro Diagnostics, Inc., doing business as Vitro Biopharma, focuses on the development, manufacture, and distribution of stem cell products and related tools for use in research, drug discovery, and clinical trials in the United States. Its stem cell technology includes cell lines, supporting products, and methods for generation and differentiation of stem cells into products for the treatment of diseases, such as heart disease, arthritis, multiple sclerosis, brain injury, autism, stroke, Parkinson's, and Alzheimer's diseases. The company also offers Tools for Stem Cell and Drug Discovery that provide researchers basic tools needed to advance stem cell technology, including stem cells and their derivatives; media for growth and differentiation of stem cells; and tools for measurement of stem cell quality, potency, and response to toxic agents. In addition, it offers MSC-Gro, a cell culture media product; MSC cell line for the treatment of skeletal muscular conditions, such as tendonitis, ligament injury, osteoarthritis and accelerated bone fracture healing, etc.; and testing and therapies related to endogenous stem cell activation. Further, the company provides diagnostic testing of stem cell activation and determination of stem cell functional status; and cell-based assays for discovery of novel stem cell activation agents and drugs for the treatment of osteoporosis. Vitro Diagnostics, Inc. was founded in 1986 and is based in Golden, Colorado.

About Fennec Pharmaceuticals

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.