Inuvo Inc. (INUV) Vs. FSD Pharma Inc. (HUGE): Which Is Riskier?

Inuvo Inc. (AMEX: INUV) shares are 42.92% up in the year-to-date (YTD) period and have moved 10.34% or $0.04 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +356.37% lower. Comparatively, the stock is -61.93% down YTD and -18.73% over the trailing 3-month period. If we look at the shorter duration, its week performance is 3.63% and -27.14% over the month.

Analyst Recommendations

On December 14, 2015, Ladenburg Thalmann recommended the INUV stock is a Buy, while earlier, Alliance Global Partners had Initiated the stock as a Buy on July 28, 2020. 3 analysts offering the recommendations for the stock have a consensus rating of 2.00 to suggest that the INUV stock is a “Moderate Buy. 0 of the 3 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 2 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $0.42. The forecasts give the Inuvo Inc. stock a price target range of $2.25 on the higher side while at least one analyst think the stock could plunge to a low of $0.50. The two limits represent an upside potential of 81.33% or 16.0%.

Earnings Forecast

Analysts estimate the earnings to increase 50.00% in the current quarter to -$0.02, down from the $0.02 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.09, down -23.20% from -$0.11 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.03 and -$0.01. Wall Street estimates earnings per share to be at an average of -$0.05 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 13 over the last 12 months, while SEC filings reveal that there have been 8 insider sales over the same period. Insiders have purchases 4,318,763 shares while those sold by company executives and officers stand at 132,745. The last 3 months have seen insiders trade a total of 193,669 and 62,037 in purchases and sales respectively.

Cameron Gordon J, a Director at the company, bought 285,714 shares worth $50000.0 at $0.18 per share on Mar 20. The Director had earlier bought another 1,268,571 INUV shares valued at $0.22 million on Mar 20. The shares were bought at $0.18 per share. Howe Richard K (Chairman & CEO) bought 634,286 shares at $0.18 per share on Mar 20 for a total of $0.11 million while MORGAN CHARLES D, (Director) bought 1,428,571 shares on Mar 20 for $0.25 million with each share fetching $0.18.

FSD Pharma Inc. (NASDAQ:HUGE), on the other hand, is trading around $3.18 with a market cap of $41.28M and analyst research firms have a negative stance on its shares.

Let us briefly look at the FSD Pharma Inc. (HUGE) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

HUGE’s operating expenses over the recent quarter were at $4.63 million. With this in place, we can see that the company’s diluted EPS declined -$0.42 on the year-over-year period, shrinking to -$1.51 as given in the last earnings report.

The cash flow from operating activities totaled -$8.84 million, significantly lower than the -$8.5 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$8.84 million.

Major holders

Insiders own 13.19% of the company shares with a share float percentage of 9.92M. Investors are also buoyed by the number of investors in a company, with FSD Pharma Inc. having a total of 2 institutions that hold shares in the company.