Catabasis Pharmaceuticals (NASDAQ:CATB) and Strongbridge Biopharma (NASDAQ:SBBP) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.
Insider and Institutional Ownership
33.6% of Catabasis Pharmaceuticals shares are held by institutional investors. Comparatively, 56.8% of Strongbridge Biopharma shares are held by institutional investors. 8.6% of Catabasis Pharmaceuticals shares are held by insiders. Comparatively, 4.2% of Strongbridge Biopharma shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a summary of current recommendations and price targets for Catabasis Pharmaceuticals and Strongbridge Biopharma, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Catabasis Pharmaceuticals currently has a consensus target price of $40.00, suggesting a potential upside of 614.29%. Strongbridge Biopharma has a consensus target price of $14.67, suggesting a potential upside of 173.12%. Given Catabasis Pharmaceuticals’ higher probable upside, equities research analysts plainly believe Catabasis Pharmaceuticals is more favorable than Strongbridge Biopharma.
Risk & Volatility
Catabasis Pharmaceuticals has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500. Comparatively, Strongbridge Biopharma has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500.
This table compares Catabasis Pharmaceuticals and Strongbridge Biopharma’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Catabasis Pharmaceuticals and Strongbridge Biopharma’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Catabasis Pharmaceuticals||$500,000.00||79.97||-$27.36 million||($12.60)||-0.44|
|Strongbridge Biopharma||$18.03 million||16.13||$31.85 million||$0.31||17.32|
Strongbridge Biopharma has higher revenue and earnings than Catabasis Pharmaceuticals. Catabasis Pharmaceuticals is trading at a lower price-to-earnings ratio than Strongbridge Biopharma, indicating that it is currently the more affordable of the two stocks.
Strongbridge Biopharma beats Catabasis Pharmaceuticals on 9 of the 13 factors compared between the two stocks.
Catabasis Pharmaceuticals Company Profile
Catabasis Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of therapeutics based on safely metabolized and rationally targeted (SMART) linker drug discovery platform in the United States. The company's lead product candidate is Edasalonexent, an oral small molecule, which completed Phase II clinical trial for the treatment of duchenne muscular dystrophy (DMD), as well as Phase I clinical trial for the treatment of additional rare diseases. It is also involved in developing SMART linker conjugates that are in preclinical stage of development, including CAT-5571 for cystic fibrosis (CF) and malfunctioning of CF transmembrane conductance regulator, as well as for the clearance of pathogens, such as P. aeruginosa and B. cenocepacia; and CAT-4001 for the treatment of severe and rare neurodegenerative diseases consisting of Friedreich's ataxia and amyotrophic lateral sclerosis. In addition, the company offers CAT-2000 compounds, which are SMART linker conjugates of nicotinic acid and EPA that are used for the treatment of nonalcoholic steatohepatitis. Catabasis Pharmaceuticals, Inc. has a pre-clinical joint research collaboration agreement with Sarepta Therapeutics, Inc. to explore a combination drug treatment approach for DMD; and collaboration with the University of Texas Southwestern to study the potential benefits of edasalonexent treatment. The company was founded in 2008 and is based in Cambridge, Massachusetts.
Strongbridge Biopharma Company Profile
Strongbridge Biopharma plc, a commercial-stage biopharmaceutical company, focuses on the development and commercialization of therapies for rare diseases with unmet needs. The company's commercial products include Keveyis, an oral carbonic anhydrase inhibitor for treating hyperkalemic, hypokalemic, and related variants of primary periodic paralysis in the United States; and Macrilen, an oral growth hormone secretagogue receptor agonist for use in the diagnosis of patients with adult growth hormone deficiency in the United States and Canada. Its clinical-stage product candidates are Recorlev, a cortisol synthesis inhibitor, which is in a Phase III clinical trial that is used for the treatment of endogenous Cushing's syndrome; and Veldoreotide, a somatostatin analog that is used for treatment of acromegaly. The company was formerly known as Cortendo plc and changed its name to Strongbridge Biopharma plc in September 2015. Strongbridge Biopharma plc was founded in 1996 and is headquartered in Trevose, Pennsylvania.
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