Cidara Therapeutics (NASDAQ:CDTX) and Alector (NASDAQ:ALEC) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.
This table compares Cidara Therapeutics and Alector’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and target prices for Cidara Therapeutics and Alector, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cidara Therapeutics currently has a consensus price target of $11.00, indicating a potential upside of 378.26%. Alector has a consensus price target of $26.67, indicating a potential upside of 24.84%. Given Cidara Therapeutics’ higher possible upside, equities analysts clearly believe Cidara Therapeutics is more favorable than Alector.
Earnings & Valuation
This table compares Cidara Therapeutics and Alector’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cidara Therapeutics||N/A||N/A||-$59.02 million||($2.32)||-0.99|
|Alector||$27.51 million||53.48||-$318.19 million||($4.62)||-4.62|
Cidara Therapeutics has higher earnings, but lower revenue than Alector. Alector is trading at a lower price-to-earnings ratio than Cidara Therapeutics, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
63.6% of Cidara Therapeutics shares are held by institutional investors. 15.2% of Cidara Therapeutics shares are held by insiders. Comparatively, 34.4% of Alector shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
About Cidara Therapeutics
Cidara Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of anti-infectives for the treatment of diseases. Its lead product candidate is rezafungin acetate, a molecule in the echinocandin class of antifungals for the treatment and prevention of serious invasive fungal infections, including candidemia and invasive candidiasis, fungal infections associated with high mortality rates. It is also developing antibody-drug conjugates for multidrug-resistant bacterial infections that directly kill pathogens and also direct a patient's immune system to attack and eliminate bacterial, fungal, or viral pathogens. The company was formerly known as K2 Therapeutics, Inc. and changed its name to Cidara Therapeutics, Inc. in June 2014. Cidara Therapeutics, Inc. was founded in 2012 and is headquartered in San Diego, California.
Alector, Inc., a clinical stage biotechnology company, focuses on developing therapies that harness the immune system to cure neurodegenerative diseases. Its products in Phase I clinical trial include AL001, a humanized recombinant monoclonal antibody for the treatment of frontotemporal dementia; and AL002 for the treatment of Alzheimer's disease. The company's preclinical stage products comprise AL101 for the treatment of multiple neurodegenerative disorders; and AL003 for the treatment of Alzheimer's disease. It also has 10 programs under research and development stage. The company was founded in 2013 and is headquartered in South San Francisco, California.
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