Aeglea BioTherapeutics (NASDAQ: AGLE) and Reata Pharmaceuticals (NASDAQ:RETA) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.
This table compares Aeglea BioTherapeutics and Reata Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
48.1% of Aeglea BioTherapeutics shares are held by institutional investors. Comparatively, 15.6% of Reata Pharmaceuticals shares are held by institutional investors. 27.0% of Aeglea BioTherapeutics shares are held by company insiders. Comparatively, 62.4% of Reata Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Aeglea BioTherapeutics has a beta of 3.46, meaning that its stock price is 246% more volatile than the S&P 500. Comparatively, Reata Pharmaceuticals has a beta of -2.17, meaning that its stock price is 317% less volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Aeglea BioTherapeutics and Reata Pharmaceuticals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Aeglea BioTherapeutics currently has a consensus target price of $19.00, suggesting a potential upside of 276.24%. Reata Pharmaceuticals has a consensus target price of $54.71, suggesting a potential upside of 66.81%. Given Aeglea BioTherapeutics’ higher probable upside, research analysts clearly believe Aeglea BioTherapeutics is more favorable than Reata Pharmaceuticals.
Valuation & Earnings
This table compares Aeglea BioTherapeutics and Reata Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Aeglea BioTherapeutics||$4.86 million||17.10||-$24.72 million||($1.82)||-2.77|
|Reata Pharmaceuticals||$50.09 million||17.09||-$22.97 million||($1.07)||-30.65|
Reata Pharmaceuticals has higher revenue and earnings than Aeglea BioTherapeutics. Reata Pharmaceuticals is trading at a lower price-to-earnings ratio than Aeglea BioTherapeutics, indicating that it is currently the more affordable of the two stocks.
Reata Pharmaceuticals beats Aeglea BioTherapeutics on 8 of the 12 factors compared between the two stocks.
Aeglea BioTherapeutics Company Profile
Aeglea BioTherapeutics, Inc. is a biotechnology company, which is engaged in the development of enzyme-based therapeutics in the field of amino acid metabolism to treat inborn errors of metabolism (IEM) and cancer. The Company’s product pipeline includes AEB1102, AEB3103, AEB2109 and AEB4104. Its lead product candidate, AEB1102, is engineered to degrade the amino acid arginine and is being developed to treat over two extremes of arginine metabolism, including arginine excess in patients with Arginase I deficiency, an IEM, as well as some cancers, which have shown to have a metabolic dependence on arginine. AEB1102 reduces blood arginine levels in nonclinical and oncology clinical studies. AEB3103 targets the degradation of the amino acid cysteine/cystine. AEB2109 targets the degradation of the amino acid methionine. AEB4104 targets the reduction of elevated levels of the amino acid homocystine associated with the IEM classical homocystinuria.
Reata Pharmaceuticals Company Profile
Reata Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on identifying, developing and commercializing product candidates that modulate the activity of regulatory proteins involved in the biology of mitochondrial function, oxidative stress, and inflammation to address the unmet medical needs of patients with a range of serious or life-threatening diseases. The Company’s lead product candidates include bardoxolone methyl, which is being studied in Phase III trial for the treatment of pulmonary arterial hypertension (PAH), associated with connective tissue disease (CTD-PAH), as well as a Phase II trial for the treatment of pulmonary hypertension due to interstitial lung disease (PH-ILD), and PAH, each of which are subsets of pulmonary hypertension (PH), Omaveloxolone, which is in Phase II clinical development for the treatment of multiple diseases, including Friedreich’s ataxia, mitochondrial myopathies and metastatic melanoma.
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