Phathom Pharmaceuticals (NASDAQ:PHAT – Get Free Report) and Silverback Therapeutics (NASDAQ:SBTX – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.
Volatility and Risk
Phathom Pharmaceuticals has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500. Comparatively, Silverback Therapeutics has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.
Institutional and Insider Ownership
99.0% of Phathom Pharmaceuticals shares are held by institutional investors. Comparatively, 74.9% of Silverback Therapeutics shares are held by institutional investors. 23.0% of Phathom Pharmaceuticals shares are held by company insiders. Comparatively, 34.4% of Silverback Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Phathom Pharmaceuticals | $81.86 million | 7.61 | -$201.59 million | ($5.24) | -1.70 |
| Silverback Therapeutics | N/A | N/A | -$89.48 million | ($2.42) | -5.55 |
Silverback Therapeutics has lower revenue, but higher earnings than Phathom Pharmaceuticals. Silverback Therapeutics is trading at a lower price-to-earnings ratio than Phathom Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for Phathom Pharmaceuticals and Silverback Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Phathom Pharmaceuticals | 0 | 1 | 4 | 1 | 3.00 |
| Silverback Therapeutics | 0 | 0 | 0 | 0 | 0.00 |
Phathom Pharmaceuticals presently has a consensus price target of $17.60, suggesting a potential upside of 97.31%. Given Phathom Pharmaceuticals’ stronger consensus rating and higher possible upside, research analysts plainly believe Phathom Pharmaceuticals is more favorable than Silverback Therapeutics.
Profitability
This table compares Phathom Pharmaceuticals and Silverback Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Phathom Pharmaceuticals | -1,292.14% | N/A | -79.57% |
| Silverback Therapeutics | N/A | -29.62% | -28.20% |
Summary
Phathom Pharmaceuticals beats Silverback Therapeutics on 8 of the 14 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 Silverback Therapeutics
Silverback Therapeutics, Inc., a biopharmaceutical company, develops tissue-targeted therapeutics for the treatment of chronic viral infections, cancer, and other serious diseases. The company offers SBT8230 to treat chronic hepatitis B virus infection by eliciting an anti-viral immune response by targeting TLR8 activation to the liver. Silverback Therapeutics, Inc. was incorporated in 2016 and is headquartered in Seattle, Washington.
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