Catabasis Pharmaceuticals (NASDAQ: CATB) and La Jolla Pharmaceutical (NASDAQ:LJPC) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Risk and Volatility
Catabasis Pharmaceuticals has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, La Jolla Pharmaceutical has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500.
Insider and Institutional Ownership
32.5% of Catabasis Pharmaceuticals shares are held by institutional investors. 40.7% of Catabasis Pharmaceuticals shares are held by company insiders. Comparatively, 25.5% of La Jolla Pharmaceutical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for Catabasis Pharmaceuticals and La Jolla Pharmaceutical, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|La Jolla Pharmaceutical||0||0||6||0||3.00|
Catabasis Pharmaceuticals currently has a consensus price target of $5.42, indicating a potential upside of 234.36%. La Jolla Pharmaceutical has a consensus price target of $54.60, indicating a potential upside of 61.49%. Given Catabasis Pharmaceuticals’ higher probable upside, analysts clearly believe Catabasis Pharmaceuticals is more favorable than La Jolla Pharmaceutical.
This table compares Catabasis Pharmaceuticals and La Jolla Pharmaceutical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|La Jolla Pharmaceutical||N/A||-88.55%||-78.19%|
Earnings and Valuation
This table compares Catabasis Pharmaceuticals and La Jolla Pharmaceutical’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Catabasis Pharmaceuticals||N/A||N/A||-$36.06 million||($1.51)||-1.07|
|La Jolla Pharmaceutical||$620,000.00||1,207.89||-$78.18 million||($5.10)||-6.63|
Catabasis Pharmaceuticals has higher revenue, but lower earnings than La Jolla Pharmaceutical. La Jolla Pharmaceutical is trading at a lower price-to-earnings ratio than Catabasis Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
La Jolla Pharmaceutical beats Catabasis Pharmaceuticals on 6 of the 11 factors compared between the two stocks.
About Catabasis Pharmaceuticals
Catabasis Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on the discovery, development and commercialization of therapeutics based on its Safely Metabolized And Rationally Targeted (SMART), a linker drug discovery platform. The SMART linker drug discovery platform enables to engineer product candidates that can modulate multiple targets in a disease. The Company’s primary focus is on treatments for rare diseases. The Company is also developing other product candidates for the treatment of lipid disorders. The Company’s CAT-1004 is a SMART linker conjugate of salicylate, a non-steroidal anti-inflammatory drug, and the omega-3 fatty acid docosahexaenoic acid (DHA), a naturally occurring unsaturated fatty acid with anti-inflammatory properties. Its CAT-2000 series product candidates inhibit the Sterol Regulatory Element Binding Protein (SREBP) pathway. The Company’s CAT-4001 is a SMART linker conjugate of monomethyl fumarate and DHA.
About La Jolla Pharmaceutical
La Jolla Pharmaceutical Company is a biopharmaceutical company. The Company is focused on the discovery, development and commercialization of therapies to improve outcomes in patients suffering from life-threatening diseases. LJPC-501 is its formulation of angiotensin II for the potential treatment of catecholamine-resistant hypotension (CRH). It has initiated a Phase III trial of LJPC-501 for the treatment of CRH, called the Angiotensin II for the Treatment of High-Output Shock 3 (ATHOS) Phase III trial. LJPC-401 is its formulation of synthetic human hepcidin for the potential treatment of conditions characterized by iron overload, such as hereditary hemochromatosis, beta thalassemia, sickle cell disease and myelodysplastic syndrome. LJPC-30S is its next-generation gentamicin derivative program that is focused on therapeutics for the potential treatment of serious bacterial infections, as well as rare genetic disorders, such as cystic fibrosis and Duchenne muscular dystrophy.
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