Fractyl Health (NASDAQ:GUTS – Get Free Report) and C4 Therapeutics (NASDAQ:CCCC – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.
Risk & Volatility
Fractyl Health has a beta of 2.34, meaning that its stock price is 134% more volatile than the S&P 500. Comparatively, C4 Therapeutics has a beta of 2.94, meaning that its stock price is 194% more volatile than the S&P 500.
Valuation and Earnings
This table compares Fractyl Health and C4 Therapeutics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fractyl Health | $90,000.00 | 1,061.20 | -$140.95 million | ($0.88) | -0.68 |
| C4 Therapeutics | $35.95 million | 11.60 | -$104.99 million | ($1.00) | -3.39 |
C4 Therapeutics has higher revenue and earnings than Fractyl Health. C4 Therapeutics is trading at a lower price-to-earnings ratio than Fractyl Health, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
78.8% of C4 Therapeutics shares are owned by institutional investors. 8.4% of Fractyl Health shares are owned by insiders. Comparatively, 5.6% of C4 Therapeutics shares are owned by 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.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Fractyl Health and C4 Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fractyl Health | 1 | 1 | 3 | 0 | 2.40 |
| C4 Therapeutics | 1 | 0 | 4 | 0 | 2.60 |
Fractyl Health presently has a consensus target price of $5.50, suggesting a potential upside of 816.67%. C4 Therapeutics has a consensus target price of $7.67, suggesting a potential upside of 126.16%. Given Fractyl Health’s higher possible upside, research analysts clearly believe Fractyl Health is more favorable than C4 Therapeutics.
Profitability
This table compares Fractyl Health and C4 Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fractyl Health | N/A | -1,362.10% | -84.89% |
| C4 Therapeutics | -289.44% | -45.45% | -30.90% |
Summary
C4 Therapeutics beats Fractyl Health on 8 of the 14 factors compared between the two stocks.
About Fractyl Health
Fractyl Health, Inc., a metabolic therapeutics company, develops therapies for the treatment of type 2 diabetes (T2D) and obesity. The company develops Revita DMR System (Revita), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high fat and high sugar diet, which can initiate T2D and obesity in humans. It also develops Rejuva, a novel adeno-associated virus delivered pancreatic gene therapy platform that is designed to enable long-term remission of T2D and obesity by durably altering metabolic hormone function in the pancreatic islet cells of patients. Fractyl Health, Inc. was formerly known as Fractyl Laboratories Inc. and changed its name to Fractyl Health, Inc. on June 09, 2021. The company was incorporated in 2010 and is headquartered in Burlington, Massachusetts.
About C4 Therapeutics
C4 Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops novel therapeutic candidates to degrade disease-causing proteins for the treatment of cancer, neurodegenerative conditions, and other diseases. Its lead product candidate is CFT7455, an orally bioavailable MonoDAC degrader of protein that is in Phase 1/2 trial targeting IKZF1 and IKZF3 for multiple myeloma and non-Hodgkin lymphomas, including peripheral T-cell lymphoma and mantle cell lymphoma, currently under Phase 1/2 clinical trials. The company is also developing CFT1946, an orally bioavailable BiDAC degrader targeting V600X mutant BRAF to treat melanoma, non-small cell lung cancer (NSCLC), colorectal cancer, and other solid malignancies, currently under Phase 1/2 clinical trials; and CFT8919, an orally bioavailable, allosteric, and mutant-selective BiDAC degrader of epidermal growth factor receptor, or EGFR, with an L858R mutation in NSCLC. It has strategic collaborations with F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc.; Biogen MA, Inc.; Betta Pharmaceuticals, Co., Ltd.; and Merck Sharp & Dohme, LLC, as well as Calico Life Sciences LLC. The company was incorporated in 2015 and is headquartered in Watertown, Massachusetts.
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