Critical Review: Graybug Vision (NASDAQ:GRAY) versus Portage Biotech (NASDAQ:ATON)

Portage Biotech (NASDAQ:ATON) and Graybug Vision (NASDAQ:GRAY) are both small-cap manufacturing companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Institutional and Insider Ownership

13.4% of Portage Biotech shares are held by institutional investors. Comparatively, 49.9% of Graybug Vision shares are held by institutional investors. 7.9% of Graybug Vision shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Portage Biotech and Graybug Vision”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Portage Biotech	N/A	N/A	-$6.77 million	($8.18)	-0.06
Graybug Vision	$426.96 million	0.00	-$35.60 million	($24.23)	-0.03

Portage Biotech has higher earnings, but lower revenue than Graybug Vision. Portage Biotech is trading at a lower price-to-earnings ratio than Graybug Vision, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Portage Biotech and Graybug Vision, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Portage Biotech	1	0	0	0	1.00
Graybug Vision	0	0	0	0	0.00

Profitability

This table compares Portage Biotech and Graybug Vision’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Portage Biotech	N/A	N/A	N/A
Graybug Vision	N/A	-77.61%	-71.34%

Risk and Volatility

Portage Biotech has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, Graybug Vision has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Summary

Portage Biotech beats Graybug Vision on 5 of the 9 factors compared between the two stocks.

About Portage Biotech

Portage Biotech Inc., together with its subsidiaries, researches and develops pharmaceutical and biotechnology products. The company’s product includes IMM60, an iNKT cell activator; IMM65, a PLGA-nanoparticle combined with a NY-ESO-1 peptide vaccine; INT230-6 that is in Phase I/II clinical trials for the treatment of solid tumors; STING, a small molecule that binds to the stimulator of interferon genes in cancer; CellPorter, a cell permeable peptide platform technology derived from human proteins; PPL-003, an ophthalmic solution; and SBI-101, a blood-conditioning technology to restore balance to the immune system after acute vital organ injury, such as acute kidney injury. It also focuses on nanolipogel technology for use in immune-oncology; and antibodies against a novel T-cell for use as a monotherapy and combination therapy for solid and haematological malignancies. In addition, the company develops antibodies implicated in the inflammatory tumor and tumor-infiltrating immune cell microenvironments; and FOXO4-P53 modulator and C-RAF inhibitor. Portage Biotech Inc. is based in Tortola, British Virgin Islands.

About Graybug Vision

Graybug Vision, Inc., a clinical-stage biopharmaceutical company, focuses on the development of medicines for the treatment of diseases of the retina and optic nerve. The company's lead product candidate is GB-102, an intravitreal injection of a microparticle depot formulation of sunitinib that is in Phase I/IIa and IIb clinical trials for the treatment of wet age-related macular degeneration, as well as in Phase IIa clinical trial to treat diabetic macular edema. It also develops GB-102, for the treatment of diabetic retinopathy; and GB-401, an intravitreally injected implant formulation of a beta-adrenergic receptor inhibitor to treat primary open-angle glaucoma. The company was formerly known as Graybug LLC and changed its name to Graybug Vision, Inc. in 2016. Graybug Vision, Inc. was incorporated in 2011 and is based in Redwood City, California.