Contrasting Rein Therapeutics (NASDAQ:RNTX) & Bright Minds Biosciences (NASDAQ:DRUG)

Rein Therapeutics (NASDAQ:RNTX) and Bright Minds Biosciences (NASDAQ:DRUG) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Rein Therapeutics and Bright Minds Biosciences, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rein Therapeutics	1	0	2	0	2.33
Bright Minds Biosciences	0	0	8	2	3.20

Rein Therapeutics currently has a consensus price target of $8.00, suggesting a potential upside of 357.14%. Bright Minds Biosciences has a consensus price target of $81.00, suggesting a potential upside of 57.40%. Given Rein Therapeutics’ higher possible upside, analysts plainly believe Rein Therapeutics is more favorable than Bright Minds Biosciences.

Risk and Volatility

Rein Therapeutics has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Bright Minds Biosciences has a beta of -6.26, suggesting that its share price is 726% less volatile than the S&P 500.

Valuation & Earnings

This table compares Rein Therapeutics and Bright Minds Biosciences”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rein Therapeutics	N/A	N/A	-$62.88 million	($2.69)	-0.65
Bright Minds Biosciences	N/A	N/A	-$2.06 million	($0.93)	-55.33

Bright Minds Biosciences is trading at a lower price-to-earnings ratio than Rein Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Rein Therapeutics and Bright Minds Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rein Therapeutics	N/A	-141.11%	-33.83%
Bright Minds Biosciences	N/A	-20.96%	-20.66%

Insider and Institutional Ownership

90.9% of Rein Therapeutics shares are owned by institutional investors. Comparatively, 40.5% of Bright Minds Biosciences shares are owned by institutional investors. 5.1% of Rein Therapeutics shares are owned by company insiders. Comparatively, 42.7% of Bright Minds Biosciences shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Bright Minds Biosciences beats Rein Therapeutics on 8 of the 12 factors compared between the two stocks.

About Rein Therapeutics

Rein Therapeutics, Inc. is a clinical stage biopharmaceutical company, which engages in the development and commercialization of a novel class of therapeutics for the treatment of cancer and other diseases. It focuses on its lead product candidate, ALRN-6924, which is a cell-permeating peptide that disrupts the interaction of p53 suppressors MDM2 and MDMX with tumor suppressor p53 to reactivate tumor suppression in non-mutant, or wild-type, p53 cancers. The company was founded by Gregory L. Verdine, Rosana Kapeller, Huw M. Nash, Joseph A. Yanchik III, and Loren David Walensky on August 6, 2001 and is headquartered in Austin, TX.

About Bright Minds Biosciences

Bright Minds Biosciences Inc., a biotechnology company, develops therapeutics to improve the lives of patients with severe and life-altering diseases in the United States. Its portfolio of selective 5-HT receptor agonists includes 5-HT2C, 5-HT2A, and 5-HT2C/A for the treatment of epilepsy, pain, and neuropsychiatry; and BMB-101 which completes phase 1 trial for undisclosed seizure disorder. The company also developing BMB-202 for the treatment of depression, anxiety, and PTSD; and BMB-201 for the treatment of anxiety. It has collaboration with National Institutes of Health for the treatment of epilepsy; University of Texas Medical Branch to treat impulse control disorders, such as binge eating; and Medical College of Wisconsin. Bright Minds Biosciences Inc. was founded in 2017 and is headquartered in New York, New York.