Conatus Pharmaceuticals (NASDAQ:CNAT) and Avenue Therapeutics (NASDAQ:ATXI) 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.
This table compares Conatus Pharmaceuticals and Avenue Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Conatus Pharmaceuticals has a beta of 2.17, meaning that its share price is 117% more volatile than the S&P 500. Comparatively, Avenue Therapeutics has a beta of -0.4, meaning that its share price is 140% less volatile than the S&P 500.
Earnings and Valuation
This table compares Conatus Pharmaceuticals and Avenue Therapeutics’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Conatus Pharmaceuticals||$33.59 million||0.31||-$18.01 million||($0.59)||-0.53|
|Avenue Therapeutics||N/A||N/A||-$21.55 million||($2.10)||-2.66|
Conatus Pharmaceuticals has higher revenue and earnings than Avenue Therapeutics. Avenue Therapeutics is trading at a lower price-to-earnings ratio than Conatus Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for Conatus Pharmaceuticals and Avenue Therapeutics, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Conatus Pharmaceuticals presently has a consensus target price of $5.84, indicating a potential upside of 1,783.26%. Avenue Therapeutics has a consensus target price of $10.50, indicating a potential upside of 88.17%. Given Conatus Pharmaceuticals’ higher possible upside, research analysts clearly believe Conatus Pharmaceuticals is more favorable than Avenue Therapeutics.
Insider and Institutional Ownership
25.2% of Conatus Pharmaceuticals shares are held by institutional investors. Comparatively, 7.0% of Avenue Therapeutics shares are held by institutional investors. 11.3% of Conatus Pharmaceuticals shares are held by insiders. Comparatively, 5.0% of Avenue 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.
Conatus Pharmaceuticals beats Avenue Therapeutics on 10 of the 13 factors compared between the two stocks.
Conatus Pharmaceuticals Company Profile
Conatus Pharmaceuticals Inc., a biotechnology company, focuses on the development and commercialization of novel medicines for the treatment of liver diseases in the United States. Its product candidate includes Emricasan, an orally active caspase protease inhibitor that is in Phase IIb clinical trials for post-orthotopic liver transplant as a result of hepatitis C virus infection with sustained viral response; for portal hypertension; for liver fibrosis caused by nonalcoholic steatohepatitis; and for liver function. The company is also developing CTS-2090, an orally active inhibitor of caspase 1, which is in preclinical development stage for treating chronic diseases involving inflammasome pathways. The company has a collaboration agreement with Novartis to conduct three Phase IIb clinical trials. Conatus Pharmaceuticals Inc. was founded in 2005 and is headquartered in San Diego, California.
Avenue Therapeutics Company Profile
Avenue Therapeutics, Inc., a specialty pharmaceutical company, acquires, licenses, develops, and commercializes products primarily for use in the acute/intensive care hospital setting. Its product candidate is intravenous Tramadol, which is in Phase III clinical trials to treat moderate to moderately severe post-operative pain. The company was founded in 2015 and is based in New York, New York.
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