Echo Therapeutics (OTCMKTS: ECTE) and Tonix Pharmaceuticals (NASDAQ:TNXP) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Analyst Ratings

This is a summary of current ratings and target prices for Echo Therapeutics and Tonix Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Echo Therapeutics 0 0 0 0 N/A
Tonix Pharmaceuticals 0 1 4 0 2.80

Tonix Pharmaceuticals has a consensus price target of $8.33, indicating a potential upside of 126.45%. Given Tonix Pharmaceuticals’ higher possible upside, analysts plainly believe Tonix Pharmaceuticals is more favorable than Echo Therapeutics.

Volatility and Risk

Echo Therapeutics has a beta of 1.81, indicating that its stock price is 81% more volatile than the S&P 500. Comparatively, Tonix Pharmaceuticals has a beta of 2.92, indicating that its stock price is 192% more volatile than the S&P 500.

Profitability

This table compares Echo Therapeutics and Tonix Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Echo Therapeutics N/A N/A N/A
Tonix Pharmaceuticals N/A -78.25% -73.14%

Insider and Institutional Ownership

17.5% of Tonix Pharmaceuticals shares are owned by institutional investors. 7.0% of Echo Therapeutics shares are owned by company insiders. Comparatively, 4.0% of Tonix Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Echo Therapeutics and Tonix Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Echo Therapeutics $60,000.00 2.00 -$22.19 million ($1.28) -0.01
Tonix Pharmaceuticals N/A N/A -$38.84 million ($4.77) -0.77

Echo Therapeutics has higher revenue and earnings than Tonix Pharmaceuticals. Tonix Pharmaceuticals is trading at a lower price-to-earnings ratio than Echo Therapeutics, indicating that it is currently the more affordable of the two stocks.

Summary

Echo Therapeutics beats Tonix Pharmaceuticals on 6 of the 10 factors compared between the two stocks.

Echo Therapeutics Company Profile

Echo Therapeutics, Inc. is a medical device company. The Company is engaged in developing a non-invasive, wireless continuous glucose monitoring (CGM) system with use in the wearable-health consumer market, diabetes outpatient market and in the hospital setting. The Company operates through the development of transdermal skin permeation and diagnostic medical devices segment. The Company has also developed its needle-free skin preparation device as a platform technology that allows for enhanced skin permeation enabling extraction of analytes, such as glucose, enhanced delivery of topical pharmaceuticals and other applications. The CGM System includes a skin preparation device, transdermal glucose sensor, battery and wireless transmitter. The Company has conducted several human feasibility clinical studies with its CGM System in healthy subjects, diabetics and critically ill patients, as well as a clinical study at several hospitals in the United States.

Tonix Pharmaceuticals Company Profile

Tonix Pharmaceuticals Holding Corp., a clinical-stage pharmaceutical company, engages in developing pharmaceutical products for central nervous system disorders. The company’s lead program focuses on post-traumatic stress disorder (PTSD) that is characterized by chronic disability, inadequate treatment options, high utilization of healthcare services, and economic burden. Its lead product candidate includes TNX-102 SL, a cyclobenzaprine HCl sublingual tablet, which is in Phase III clinical stage for the treatment of PTSD; and Phase III clinical stage for the treatment of military-related PTSD. The company’s product candidates also include TNX-601, an oral formulation of tianeptine oxalate for PTSD and cognitive dysfunction associated with steroid use; TNX-801, a smallpox-preventing vaccine based on a live synthetic version of horsepox virus; TNX-301, a fixed-dose combination drug product for alcohol use disorders; and TNX-701 for radiation injuries. Tonix Pharmaceuticals Holding Corp. was founded in 2007 and is based in New York, New York.

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