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

Profitability

This table compares ContraFect and Mateon Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ContraFect N/A -84.07% -44.69%
Mateon Therapeutics N/A -210.82% -175.67%

Institutional & Insider Ownership

62.5% of ContraFect shares are owned by institutional investors. 9.3% of ContraFect shares are owned by insiders. Comparatively, 4.5% of Mateon Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares ContraFect and Mateon Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ContraFect N/A N/A -$28.53 million ($0.19) -6.21
Mateon Therapeutics N/A N/A -$13.65 million ($0.56) -0.28

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

Analyst Recommendations

This is a summary of recent ratings and target prices for ContraFect and Mateon Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ContraFect 0 1 0 0 2.00
Mateon Therapeutics 0 1 3 0 2.75

Mateon Therapeutics has a consensus price target of $1.75, indicating a potential upside of 1,029.03%. Given Mateon Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Mateon Therapeutics is more favorable than ContraFect.

Risk & Volatility

ContraFect has a beta of -0.85, indicating that its share price is 185% less volatile than the S&P 500. Comparatively, Mateon Therapeutics has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.

Summary

Mateon Therapeutics beats ContraFect on 6 of the 11 factors compared between the two stocks.

About ContraFect

ContraFect Corporation, a clinical-stage biotechnology company, focuses on discovering and developing therapeutic protein and antibody products for the treatment of life-threatening infectious diseases in the United States. Its lead product candidates consist of CF-301, a lysin that completed Phase 1 human clinical trials for the treatment of Staph aureus bacteremia, including endocarditis caused by methicillin-resistant or methicillin-susceptible Staph aureus; and CF-404, a combination of human monoclonal antibodies (mAbs) for the treatment of life-threatening seasonal and pandemic varieties of human influenza. The company has a collaboration research agreement with The Rockefeller University to identify new lysin therapeutic candidates targeting Gram-negative bacteria; and license agreement with Trellis Bioscience LLC for mAbs in the field of influenza. ContraFect Corporation was founded in 2008 and is headquartered in Yonkers, New York.

About Mateon Therapeutics

Mateon Therapeutics, Inc., formerly OXiGENE, Inc., is a biopharmaceutical company. The Company is focused on the development of vascular disrupting agents (VDAs) for the treatment of cancer. The Company is engaged in developing two clinical stage investigational drugs: VDAs-CA4P and OXi4503. Its lead compound is CA4P, which is also known as combretastatin A4-phosphate, fosbretabulin tromethamine, fosbretabulin and ZYBRESTAT. VDAs selectively targets the vasculature of cancer tumors and obstructs a tumor’s blood supply without disrupting the blood supply to normal tissues. VDAs are in a class of drugs called vascular targeted therapies (VTTs), which also includes anti-angiogenic agents (AAs). CA4P is a reversible tubulin binding agent that selectively targets the endothelial cells that make up the blood vessel walls in solid tumors. The Company is pursuing the development of a product candidate, OXi4503, which is a dual-mechanism VDA.

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