Rafael (NYSE:RFL – Get Free Report) and LuxUrban Hotels (NASDAQ:LUXH – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.
Institutional and Insider Ownership
16.9% of Rafael shares are owned by institutional investors. Comparatively, 8.1% of LuxUrban Hotels shares are owned by institutional investors. 8.4% of Rafael shares are owned by company insiders. Comparatively, 72.0% of LuxUrban Hotels shares are owned by company 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.
Profitability
This table compares Rafael and LuxUrban Hotels’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rafael | -2,813.93% | -14.63% | -13.65% |
| LuxUrban Hotels | -51.93% | -176.23% | -3.84% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Rafael and LuxUrban Hotels, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rafael | 0 | 0 | 0 | 0 | N/A |
| LuxUrban Hotels | 0 | 0 | 3 | 0 | 3.00 |
LuxUrban Hotels has a consensus target price of $9.33, indicating a potential upside of 204.02%. Given LuxUrban Hotels’ higher possible upside, analysts plainly believe LuxUrban Hotels is more favorable than Rafael.
Earnings & Valuation
This table compares Rafael and LuxUrban Hotels’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rafael | $280,000.00 | 190.89 | -$124.66 million | ($0.37) | -5.95 |
| LuxUrban Hotels | $31.45 million | 3.48 | -$48.55 million | ($1.36) | -2.26 |
LuxUrban Hotels has higher revenue and earnings than Rafael. Rafael is trading at a lower price-to-earnings ratio than LuxUrban Hotels, indicating that it is currently the more affordable of the two stocks.
Summary
LuxUrban Hotels beats Rafael on 8 of the 12 factors compared between the two stocks.
About Rafael
Rafael Holdings, Inc. holds 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), that is in Phase III clinical study for the treatment of metastatic pancreatic cancer and acute myeloid leukemia. Rafael Holdings, Inc. was incorporated in 2017 and is headquartered in Newark, New Jersey.
About LuxUrban Hotels
LuxUrban Hotels Inc. utilizes a long-term lease, asset-light business model to acquire and manage a growing portfolio of short-term rental properties in major metropolitan cities. The Company’s future growth focuses primarily on seeking to create win-win opportunities for owners of dislocated hotels, including those impacted by COVID-19 travel restrictions, while providing LuxUrban Hotels favorable operating margins. LuxUrban Hotels operates these properties in a cost-effective manner by leveraging technology to identify, acquire, manage, and market them globally to business and vacation travelers through dozens of third-party sales and distribution channels, and the Company’s own online portal. Guests at the LuxUrban Hotels properties are provided high quality service under the Company’s consumer brand, LuxUrban.
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