Onconova Therapeutics (NASDAQ: ONTX) and Transition Therapeutics (NASDAQ:TTHI) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, dividends, risk and earnings.

Valuation and Earnings

This table compares Onconova Therapeutics and Transition Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Onconova Therapeutics $4.28 million 4.26 -$19.88 million ($4.02) -0.48
Transition Therapeutics N/A N/A N/A ($0.52) -2.92

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

Analyst Recommendations

This is a breakdown of current recommendations for Onconova Therapeutics and Transition Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Onconova Therapeutics 0 0 3 0 3.00
Transition Therapeutics 0 0 0 0 N/A

Onconova Therapeutics presently has a consensus price target of $8.00, suggesting a potential upside of 316.67%. Given Onconova Therapeutics’ higher probable upside, research analysts plainly believe Onconova Therapeutics is more favorable than Transition Therapeutics.

Risk & Volatility

Onconova Therapeutics has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500. Comparatively, Transition Therapeutics has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500.

Profitability

This table compares Onconova Therapeutics and Transition Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Onconova Therapeutics -3,971.91% -8,850.70% -168.17%
Transition Therapeutics N/A -58.00% -47.29%

Insider and Institutional Ownership

15.5% of Onconova Therapeutics shares are owned by institutional investors. 27.3% of Onconova Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Onconova Therapeutics Company Profile

Onconova Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company operates through the identification and development of oncology therapeutics segment. It is focused on discovering and developing small molecule drug candidates to treat cancer. The Company has created a targeted anti-cancer agents designed to work against specific cellular pathways that are important to cancer cells. It has over three clinical-stage product candidates and various preclinical programs that target kinases, cellular metabolism or cell division in preclinical development. The Company’s lead product candidate, rigosertib, is being tested in both intravenous (IV) and oral formulations as a single agent, and the oral formulation is also being tested in combination with azacitidine, in clinical trials for patients with myelodysplastic syndromes (MDS), and related cancers. Its other product candidates include Briciclib and Recilisib.

Transition Therapeutics Company Profile

Transition Therapeutics Inc. is a product-focused biopharmaceutical company. The Company’s principal business activity is the researching and developing of therapeutic agents. The Company is developing therapeutics for central nervous system (CNS) and metabolic disease indications. The Company’s technologies are focused on the treatment of agitation and aggression in Alzheimer’s disease and diabetes. The Company’s subsidiary, Transition Therapeutics Ireland Limited (Transition Ireland), is developing two drug candidates: neuropsychiatric candidate ELND005 and androgen deficiency candidate TT701. The Company’s subsidiary, Waratah Pharmaceuticals Inc. (Waratah), is developing diabetes drug candidate TT401. The Company’s other two entities provide development services in support of the clinical and non-clinical activities of Transition Ireland and Waratah.

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