Contrasting Fusion Pharmaceuticals (NASDAQ:FUSN) and Opthea (NASDAQ:OPT)

Fusion Pharmaceuticals (NASDAQ:FUSN) and Opthea (NASDAQ:OPT) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Fusion Pharmaceuticals and Opthea, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fusion Pharmaceuticals	0	13	1	0	2.07
Opthea	0	0	2	0	3.00

Fusion Pharmaceuticals presently has a consensus target price of $20.25, indicating a potential downside of 5.59%. Opthea has a consensus target price of $14.00, indicating a potential upside of 309.60%. Given Opthea’s stronger consensus rating and higher probable upside, analysts plainly believe Opthea is more favorable than Fusion Pharmaceuticals.

Profitability

This table compares Fusion Pharmaceuticals and Opthea’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fusion Pharmaceuticals	-4,136.55%	-46.59%	-35.34%
Opthea	N/A	N/A	N/A

Institutional and Insider Ownership

72.9% of Fusion Pharmaceuticals shares are held by institutional investors. Comparatively, 56.0% of Opthea shares are held by institutional investors. 7.8% of Fusion Pharmaceuticals shares are held by company insiders. Comparatively, 3.2% of Opthea shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Fusion Pharmaceuticals and Opthea’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fusion Pharmaceuticals	$2.07 million	879.35	-$94.90 million	($1.47)	-14.59
Opthea	$110,000.00	1,814.65	-$142.52 million	N/A	N/A

Fusion Pharmaceuticals has higher revenue and earnings than Opthea.

Risk & Volatility

Fusion Pharmaceuticals has a beta of -0.69, meaning that its share price is 169% less volatile than the S&P 500. Comparatively, Opthea has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

Summary

Opthea beats Fusion Pharmaceuticals on 8 of the 12 factors compared between the two stocks.

About Fusion Pharmaceuticals

Fusion Pharmaceuticals Inc., a clinical-stage oncology company, focuses on developing radiopharmaceuticals as precision medicines in Canada and the United States. The company's lead product candidates include FPI-2265 that is in Phase 2 clinical trial to treat prostate-specific membrane antigens; and FPI-1434 that is in Phase 1 clinical trial as a monotherapy in patients with solid tumors expressing that target insulin-like growth factor 1 receptor. It also conducting additional preclinical studies of FPI-1434 in combination with approved checkpoint inhibitors and DNA damage response inhibitors to further assess the anti-tumor activity, and dosing schedule and pharmacodynamics of the combinations. In addition, the company develops FPI-1966 for the treatment of multiple cancers, including colorectal, ovarian, bladder, and head and neck cancers.; FPI-2068, a bispecific antibody, which is in Phase 1 clinical trial targeting epidermal growth factor receptor, and mesenchymal epithelial transition factor. It has a strategic collaboration agreement with AstraZeneca UK Limited to discover, develop, and commercialize alpha-emitting radiopharmaceuticals and combination therapies for the treatment of cancer. Fusion Pharmaceuticals Inc. was incorporated in 2014 and is headquartered in Hamilton, Canada.

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.