Zevra Therapeutics (NASDAQ:ZVRA) has emerged as a more favorable investment compared to Salarius Pharmaceuticals (NASDAQ:SLRX), according to a recent analysis. The evaluation focused on various factors, including analyst recommendations, earnings performance, institutional ownership, and risk metrics, providing a comprehensive overview of both companies.
Analyst Recommendations and Market Position
MarketBeat.com reports that Zevra Therapeutics currently has a consensus price target of $22.80, suggesting a potential upside of 161.02%. This positive outlook is reinforced by a stronger consensus rating compared to Salarius Pharmaceuticals, indicating that analysts view Zevra more favorably.
In contrast, Salarius Pharmaceuticals has lower revenue figures but exhibits higher earnings per share. Despite these earnings, it maintains a lower price-to-earnings ratio than Zevra, suggesting it is the more affordable option at present.
Ownership and Financial Backing
Institutional investors hold 35.0% of Zevra Therapeutics shares, while only 11.9% of Salarius Pharmaceuticals shares are owned by institutions. Additionally, insider ownership reflects a similar disparity, with 2.4% of Zevra’s shares held by insiders compared to just 0.3% for Salarius. This strong institutional backing indicates confidence from significant investors in Zevra’s long-term performance.
Zevra Therapeutics also demonstrates a higher volatility, with a beta of 1.01, meaning it is slightly more volatile than the S&P 500 index. Conversely, Salarius Pharmaceuticals has a beta of 0.4, indicating that its stock is 60% less volatile than the broader market.
Company Overviews
Zevra Therapeutics specializes in developing proprietary prodrugs for serious medical conditions, utilizing its Ligand Activated Therapy platform. The company’s lead candidate, KP1077, is in Phase 2 clinical trials for idiopathic hypersomnia, while another variant is in earlier trials for narcolepsy. Notably, Zevra is also working on treatments for attention deficit hyperactivity disorder and ultra-rare diseases such as Niemann-Pick disease type C.
Founded in 2006 and headquartered in Celebration, Florida, the company changed its name from KemPharm, Inc. to Zevra Therapeutics in February 2023.
In contrast, Salarius Pharmaceuticals is a clinical-stage biotechnology firm focused on oncology. Its leading candidate, Seclidemstat (SP-2577), is currently undergoing Phase I/II trials aimed at treating advanced solid tumors and Ewing sarcoma. Salarius also has a partnership with the University of Utah Research Foundation for the exclusive license concerning SP-2577 and related compounds.
Headquartered in Houston, Texas, Salarius aims to address significant unmet needs in cancer treatment.
In summary, Zevra Therapeutics leads on nearly all evaluated factors, highlighting its position as a potentially more attractive investment compared to Salarius Pharmaceuticals. As the market evolves, ongoing developments in both companies will be crucial for investors to monitor.
