Critical Review: Cyclo Therapeutics (NASDAQ:CYTH) versus Opthea (NASDAQ:OPT)

Opthea (NASDAQ:OPT) and Cyclo Therapeutics (NASDAQ:CYTH) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Analyst Ratings

This is a summary of current recommendations for Opthea and Cyclo Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Opthea	0	0	3	0	3.00
Cyclo Therapeutics	0	0	1	0	3.00

Opthea presently has a consensus target price of $16.25, indicating a potential upside of 307.27%. Cyclo Therapeutics has a consensus target price of $4.00, indicating a potential upside of 194.12%. Given Opthea’s higher possible upside, research analysts clearly believe Opthea is more favorable than Cyclo Therapeutics.

Risk & Volatility

Opthea has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Cyclo Therapeutics has a beta of -0.15, meaning that its share price is 115% less volatile than the S&P 500.

Insider and Institutional Ownership

56.0% of Opthea shares are held by institutional investors. Comparatively, 68.6% of Cyclo Therapeutics shares are held by institutional investors. 3.2% of Opthea shares are held by insiders. Comparatively, 29.8% of Cyclo Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Opthea and Cyclo Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Opthea	N/A	N/A	N/A
Cyclo Therapeutics	-1,864.03%	-4,506.97%	-290.83%

Valuation and Earnings

This table compares Opthea and Cyclo Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Opthea	$110,000.00	2,075.85	-$142.52 million	N/A	N/A
Cyclo Therapeutics	$1.08 million	36.96	-$20.06 million	($1.31)	-1.06

Cyclo Therapeutics has higher revenue and earnings than Opthea.

Summary

Opthea beats Cyclo Therapeutics on 7 of the 11 factors compared between the two stocks.

About Opthea

Opthea Limited, a clinical stage biopharmaceutical company, engages in the development and commercialization of therapies primarily for eye disease in Australia. The company's development activities are based on the intellectual property portfolio covering Vascular Endothelial Growth Factors (VEGF) VEGF-C, VEGF-D, and VEGF Receptor-3 for the treatment of diseases associated with blood and lymphatic vessel growth, as well as vascular leakage. Its lead product candidate is Sozinibercept (OPT 302), a soluble form of vascular endothelial growth factor receptor-3 VEGFR-3, currently under Phase 3 clinical development as a novel therapy for wet age-related macular degeneration and diabetic macular edema. The company was formerly known as Circadian Technologies Limited and changed its name to Opthea Limited in December 2015. Opthea Limited was incorporated in 1984 and is based in South Yarra, Australia.

About Cyclo Therapeutics

Cyclo Therapeutics, Inc., a clinical stage biotechnology company, engages in the development of cyclodextrin-based products for the treatment of neurodegenerative diseases. The company's lead drug candidate is Trappsol Cyclo (hydroxypropyl beta cyclodextrin), an orphan drug, which is in Phase III clinical trials for the treatment of Niemann-Pick Type C disease; and in Phase IIb clinical trials for the treatment of Alzheimer's disease. It also sells cyclodextrins and related products to the pharmaceutical, nutritional, and other industries, primarily for use in diagnostics and specialty drugs. The company was formerly known as CTD Holdings, Inc. and changed its name to Cyclo Therapeutics, Inc. in September 2019. Cyclo Therapeutics, Inc. was incorporated in 1990 and is headquartered in Gainesville, Florida.