BioXcel Therapeutics (NASDAQ:BTAI – Get Free Report) and Sonnet BioTherapeutics (NASDAQ:SONN – Get Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Profitability
This table compares BioXcel Therapeutics and Sonnet BioTherapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BioXcel Therapeutics | -9,070.61% | N/A | -185.00% |
| Sonnet BioTherapeutics | N/A | -4,646.10% | -342.21% |
Analyst Recommendations
This is a breakdown of recent ratings and price targets for BioXcel Therapeutics and Sonnet BioTherapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BioXcel Therapeutics | 2 | 1 | 3 | 1 | 2.43 |
| Sonnet BioTherapeutics | 1 | 0 | 1 | 0 | 2.00 |
Earnings & Valuation
This table compares BioXcel Therapeutics and Sonnet BioTherapeutics”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BioXcel Therapeutics | $2.27 million | 16.72 | -$59.60 million | ($9.70) | -0.18 |
| Sonnet BioTherapeutics | $1.00 million | 7.18 | -$7.44 million | ($8.05) | -0.13 |
Sonnet BioTherapeutics has lower revenue, but higher earnings than BioXcel Therapeutics. BioXcel Therapeutics is trading at a lower price-to-earnings ratio than Sonnet BioTherapeutics, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
30.7% of BioXcel Therapeutics shares are owned by institutional investors. Comparatively, 9.4% of Sonnet BioTherapeutics shares are owned by institutional investors. 3.7% of BioXcel Therapeutics shares are owned by company insiders. Comparatively, 8.5% of Sonnet BioTherapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
BioXcel Therapeutics has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500. Comparatively, Sonnet BioTherapeutics has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500.
Summary
BioXcel Therapeutics beats Sonnet BioTherapeutics on 9 of the 15 factors compared between the two stocks.
About BioXcel Therapeutics
BioXcel Therapeutics, Inc., a commercial-stage biopharmaceutical company, engages in utilizing artificial intelligence approaches to develop transformative medicines in neuroscience and immuno-oncology. The company's drug re-innovation approach leverages existing approved drugs and/or clinically validated product candidates together with big data and proprietary machine learning algorithms to identify new therapeutic indices. Its commercial product, IGALMI, a sublingual film formulation of dexmedetomidine for the acute treatment of agitation associated with schizophrenia or bipolar I or II disorder in adults. The company also continues to conduct clinical trials evaluating BXCL501 for the acute treatment of agitation in Alzheimer's disease patients, and for adjunctive treatment of patients with major depressive disorder, as well as in the community for agitation associated with bipolar disorders and schizophrenia. In addition, it is developing BXCL502 as a potential therapy for chronic agitation in dementia; and BXCL701, an investigational, orally innate immunity activator for the treatment of aggressive forms of prostate cancer, pancreatic cancer, and other solid and liquid tumors; BXCL503, a drug candidate to target apathy in dementia; and BXCL504, a drug candidate to target aggression in dementia. BioXcel Therapeutics, Inc. was incorporated in 2017 and is headquartered in New Haven, Connecticut.
About Sonnet BioTherapeutics
Sonnet BioTherapeutics Holdings, Inc., a biotechnology company, owns a platform for biologic medicines of single or bifunctional action. The company develops fully human albumin binding technology, which utilizes human single chain antibodies fragment that binds to and hitch-hikes on human serum albumin for transport to target tissues. Its lead product candidate is SON-1010, a fully human single-chain version of interleukin 12 that is in Phase 1b/2a clinical trial for the treatment of solid tumor indications, including ovarian cancer, non-small cell lung cancer, and head and neck cancer. The company is also developing SON-080, a fully human version of interleukin 6, which is in Phase 1b/I2a clinical trail to treat chemotherapy-induced peripheral neuropathy and diabetic peripheral neuropathy; and SON-1210, a bispecific compound for solid tumor indications, including colorectal cancer. It has a license agreement with New Life Therapeutics Pte, LTD. to develop and commercialize pharmaceutical preparations containing a specific recombinant human interleukin-6; and strategic development collaboration with Sarcoma Oncology Center to advance SON-1210. The company is headquartered in Princeton, New Jersey.
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