Analyzing Rafael (NYSE:RFL) & Artelo Biosciences (NASDAQ:ARTL)

Rafael (NYSE:RFL) and Artelo Biosciences (NASDAQ:ARTL) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.

Profitability

This table compares Rafael and Artelo Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rafael	-5,707.03%	-53.71%	-48.78%
Artelo Biosciences	N/A	-104.59%	-94.06%

Analyst Ratings

This is a summary of recent ratings for Rafael and Artelo Biosciences, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rafael	0	0	0	0	0.00
Artelo Biosciences	0	0	2	2	3.50

Artelo Biosciences has a consensus price target of $5.50, suggesting a potential upside of 374.14%. Given Artelo Biosciences’ stronger consensus rating and higher probable upside, analysts clearly believe Artelo Biosciences is more favorable than Rafael.

Volatility and Risk

Rafael has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Artelo Biosciences has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Valuation and Earnings

This table compares Rafael and Artelo Biosciences”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rafael	$697,000.00	70.45	-$34.41 million	($1.67)	-1.19
Artelo Biosciences	N/A	N/A	-$9.29 million	($2.87)	-0.40

Artelo Biosciences has lower revenue, but higher earnings than Rafael. Rafael is trading at a lower price-to-earnings ratio than Artelo Biosciences, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

11.3% of Rafael shares are held by institutional investors. Comparatively, 0.9% of Artelo Biosciences shares are held by institutional investors. 10.2% of Rafael shares are held by insiders. Comparatively, 0.8% of Artelo Biosciences shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Artelo Biosciences beats Rafael on 8 of the 14 factors compared between the two stocks.

About Rafael

Rafael Holdings, Inc. primarily engages in holding interests in clinical and early-stage pharmaceutical companies, and commercial real estate assets in the United States and Israel. It operates in two segments, Healthcare and Real Estate. The company engages in the development and commercialization of therapies that exploit the metabolic differences between normal cells and cancer cells. Its lead drug candidate is CPI-613 (devimistat), currently under Phase III clinical study for the treatment of metastatic pancreatic cancer and acute myeloid leukemia. The company is also involved in developing Promitil, a molecule designed for the targeted delivery of mitomycin-C in a proprietary prodrug form, completed Phase 1B clinical studies; Folate-targeted Promitil (Promi-Fol) which is aimed at local treatment (intravesical) of superficial bladder cancer; and Promi-Dox, a highly potent dual drug liposome with MLP and doxorubicin targeting a potential basket of tumors. In addition, it engages in the development of surgical and procedural devices, including orthopedic arthroscopy instrumentation. Rafael Holdings, Inc. was incorporated in 2017 and is headquartered in Newark, New Jersey.

About Artelo Biosciences

Artelo Biosciences, Inc., a clinical stage biopharmaceutical company, develops and commercializes therapeutics that target lipid-signaling pathways in the United States. It's product candidate pipeline includes ART27.13, a synthetic dual cannabinoid G protein-coupled receptor agonist, which is in Phase 1b/2a clinical trial for the treatment of anorexia associated with cancer; ART12.11, a synthetic cannabidiol cocrystal for the treatment anxiety, post-traumatic stress disorder, epilepsy, inflammatory bowel disease, and other potential indications; and ART26.12, a fatty acid binding protein 5 inhibitor for treating chemotherapy induced peripheral neuropathy, diabetic neuropathy, prostate cancer and breast cancer, pain, dermatologic conditions, and anxiety disorders. The company was formerly known as Reactive Medical, Inc. and changed its name to Artelo Biosciences, Inc. in April 2017. Artelo Biosciences, Inc. was incorporated in 2011 and is based in Solana Beach, California.