Head-To-Head Survey: Phathom Pharmaceuticals (NASDAQ:PHAT) & Absci (NASDAQ:ABSI)

Phathom Pharmaceuticals (NASDAQ:PHAT) and Absci (NASDAQ:ABSI) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Insider and Institutional Ownership

99.0% of Phathom Pharmaceuticals shares are owned by institutional investors. Comparatively, 52.0% of Absci shares are owned by institutional investors. 9.3% of Phathom Pharmaceuticals shares are owned by company insiders. Comparatively, 10.5% of Absci shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Phathom Pharmaceuticals and Absci”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phathom Pharmaceuticals	$204.89 million	4.47	-$221.25 million	($2.12)	-5.42
Absci	$1.84 million	708.03	-$115.18 million	($0.83)	-10.05

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

Volatility & Risk

Phathom Pharmaceuticals has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, Absci has a beta of 2.32, indicating that its share price is 132% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Phathom Pharmaceuticals and Absci, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phathom Pharmaceuticals	1	0	5	1	2.86
Absci	1	0	8	0	2.78

Phathom Pharmaceuticals presently has a consensus target price of $24.50, suggesting a potential upside of 113.36%. Absci has a consensus target price of $13.43, suggesting a potential upside of 61.05%. Given Phathom Pharmaceuticals’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Phathom Pharmaceuticals is more favorable than Absci.

Profitability

This table compares Phathom Pharmaceuticals and Absci’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phathom Pharmaceuticals	-76.77%	N/A	-44.29%
Absci	-6,450.76%	-66.32%	-57.01%

Summary

Phathom Pharmaceuticals beats Absci on 9 of the 15 factors compared between the two stocks.

About Phathom Pharmaceuticals

Phathom Pharmaceuticals, Inc., biopharmaceutical company, focuses on developing and commercializing treatments for gastrointestinal diseases. The company has the rights in the United States, Europe, and Canada for an investigational potassium-competitive acid blocker (P-CAB) that blocks acid secretion in the stomach. It is also developing vonoprazan for the treatment of erosive gastroesophageal reflux disease; and in combination with antibiotics for the treatment of Helicobacter pylori infection. The company was incorporated in 2018 and is headquartered in Florham Park, New Jersey.

About Absci

Absci Corporation operates as a data-first generative artificial intelligence (AI) drug creation company in the United States. The company combines AI with scalable wet lab technologies to create biologics for patients. Its integrated drug creation platform is designed to improve upon traditional biologic drug discovery by using AI to simultaneously optimize multiple drug characteristics that may be important to development and therapeutic benefit. The company was founded in 2011 and is headquartered in Vancouver, Washington.