CymaBay Therapeutics (NASDAQ: CBAY) and Adamas Pharmaceuticals (NASDAQ:ADMS) 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, valuation, dividends, risk, profitability and earnings.

Volatility and Risk

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CymaBay Therapeutics has a beta of 1.96, indicating that its share price is 96% more volatile than the S&P 500. Comparatively, Adamas Pharmaceuticals has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for CymaBay Therapeutics and Adamas Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CymaBay Therapeutics 0 0 11 0 3.00
Adamas Pharmaceuticals 0 0 9 0 3.00

CymaBay Therapeutics presently has a consensus price target of $17.78, indicating a potential upside of 39.32%. Adamas Pharmaceuticals has a consensus price target of $46.00, indicating a potential upside of 88.06%. Given Adamas Pharmaceuticals’ higher probable upside, analysts clearly believe Adamas Pharmaceuticals is more favorable than CymaBay Therapeutics.

Valuation & Earnings

This table compares CymaBay Therapeutics and Adamas Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CymaBay Therapeutics $10.00 million 74.65 -$27.55 million ($0.83) -15.37
Adamas Pharmaceuticals $570,000.00 1,150.48 -$89.49 million ($3.96) -6.18

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

Profitability

This table compares CymaBay Therapeutics and Adamas Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CymaBay Therapeutics N/A -60.30% -43.62%
Adamas Pharmaceuticals N/A -95.30% -59.49%

Insider and Institutional Ownership

61.4% of CymaBay Therapeutics shares are held by institutional investors. Comparatively, 77.3% of Adamas Pharmaceuticals shares are held by institutional investors. 15.1% of CymaBay Therapeutics shares are held by company insiders. Comparatively, 29.0% of Adamas Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

CymaBay Therapeutics beats Adamas Pharmaceuticals on 7 of the 12 factors compared between the two stocks.

CymaBay Therapeutics Company Profile

CymaBay Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on developing therapies to treat metabolic diseases, including serious rare and orphan diseases. The Company’s product candidates include Arhalofenate, MBX-8025 and MBX-2982. Arhalofenate is used to treat gout. MBX-8025 is a selective agonist for the peroxisome proliferator-activated receptor delta (PPARd). The Company has completed over five Phase I clinical studies and a Phase II clinical study for MBX-8025. MBX-2982 is an oral, G-protein coupled receptor agonist being evaluated as a therapeutic agent for patients with Type 2 diabetes (T2DM), with a dual mechanism, including direct effects and indirect effects mediated by gastrointestinal hormones known as incretins on glucose-dependent insulin secretion, as well as potentially beneficial effects on islet health. The Company has completed over four Phase I clinical studies and a Phase II clinical study for MBX-2982.

Adamas Pharmaceuticals Company Profile

Adamas Pharmaceuticals, Inc. is a pharmaceutical company. The Company is engaged in developing medicines to manage the daily lives of those affected by chronic neurologic disorders. It offers a platform based on an understanding of time dependent biologic effects of disease activity and drug response to achieve relief without tolerability issues. It has developed a portfolio of chrono-synchronous therapies to address chronic neurologic disorders. Its first product candidate is ADS-5102, a chrono-synchronous amantadine therapy, for the treatment of levodopa-induced dyskinesia (LID) in patients with Parkinson’s disease (PD). It has completed Phase II proof-of-concept study of ADS-5102 in these patients. Its Phase III clinical program included three placebo-controlled trials: EASED, EASE LID and EASE LID 3. Its second product candidate is ADS-4101, an extended-release version of single-agent compound for the treatment of epilepsy (partial onset seizures).

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