Financial Analysis: Achaogen (AKAO) vs. Catalyst Biosciences (NASDAQ:CBIO)

Catalyst Biosciences (NASDAQ:CBIO) and Achaogen (NASDAQ:AKAO) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations for Catalyst Biosciences and Achaogen, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Catalyst Biosciences 0 1 3 0 2.75
Achaogen 0 8 0 0 2.00

Catalyst Biosciences currently has a consensus price target of $23.88, indicating a potential upside of 177.62%. Achaogen has a consensus price target of $6.60, indicating a potential upside of 4,976.92%. Given Achaogen’s higher possible upside, analysts plainly believe Achaogen is more favorable than Catalyst Biosciences.

Valuation & Earnings

This table compares Catalyst Biosciences and Achaogen’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Catalyst Biosciences $10,000.00 10,302.80 -$30.06 million ($2.68) -3.21
Achaogen $8.73 million 0.95 -$186.51 million ($3.70) -0.04

Catalyst Biosciences has higher earnings, but lower revenue than Achaogen. Catalyst Biosciences is trading at a lower price-to-earnings ratio than Achaogen, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

63.3% of Catalyst Biosciences shares are owned by institutional investors. Comparatively, 31.9% of Achaogen shares are owned by institutional investors. 4.6% of Catalyst Biosciences shares are owned by insiders. Comparatively, 7.8% of Achaogen shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Catalyst Biosciences has a beta of 2.46, indicating that its share price is 146% more volatile than the S&P 500. Comparatively, Achaogen has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Profitability

This table compares Catalyst Biosciences and Achaogen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Catalyst Biosciences N/A -32.60% -31.51%
Achaogen -2,136.94% -357.49% -127.68%

Summary

Catalyst Biosciences beats Achaogen on 10 of the 14 factors compared between the two stocks.

About Catalyst Biosciences

Catalyst Biosciences, Inc., a clinical-stage biopharmaceutical company, focuses on developing medicines to address hematology indications. Its product pipeline includes marzeptacog alfa, a Factor VIIa variant that is in a Phase II/III clinical trial for the prophylactic treatment of individuals with severe hemophilia A and B with inhibitors. The company is also developing Dalcinonacog alfa, a Factor IX drug, which has completed enrollment of a Phase I/II subcutaneous dosing trial for the prophylactic treatment of individuals with hemophilia B; CB 2679d-GT, a FIX gene therapy for the treatment of hemophilia B; and CB 2782, an anti-C3 protease program for the treatment of dry age-related macular degeneration (AMD), as well as CB 1965a, a Factor Xa therapeutic program used as a universal procoagulant. Catalyst Biosciences, Inc. has collaboration agreement with Pfizer, Inc. for the development of human Factor VIIa products; and ISU Abxis. The company has strategic research collaboration with Mosaic Biosciences, Inc. to develop intravitreal anti-complement factor 3 products for the treatment of dry AMD and other retinal diseases. The company was founded in 2002 and is headquartered in South San Francisco, California.

About Achaogen

Achaogen, Inc., a late-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of antibacterial treatments against multi-drug resistant (MDR) gram-negative infections in the United States. The company is principally developing plazomicin for the treatment of serious bacterial infections, including urinary tract infections, blood stream infections, and other infections due to MDR enterobacteriaceae comprising carbapenem-resistant enterobacteriaceae. It is also involved in the development of antibacterial candidate C-Scape, an orally-administered combination of clavulanate and ceftibuten, which targets serious bacterial infections due to expanded spectrum beta-lactamases producing enterobacteriaceae; and therapeutic antibody discovery program. The company has license and collaboration agreements with Thermo Fisher Scientific, Inc. to develop and commercialize an assay to support plazomicin; Crystal Biosciences, Inc. to discover monoclonal antibodies against multiple targets; Ionis Pharmaceuticals, Inc. for certain patents relating to aminoglycoside antibacterial compounds and related know-how to develop and commercialize certain novel aminoglycoside antibacterial compounds; and Hovione Limited to manufacture the active pharmaceutical ingredient for plazomicin. The company was incorporated in 2002 and is based in South San Francisco, California.

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