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

Analyst Recommendations

This is a summary of current ratings and price targets for Synthorx and Achaogen, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synthorx 0 0 4 0 3.00
Achaogen 0 8 0 0 2.00

Synthorx presently has a consensus target price of $25.50, indicating a potential upside of 64.09%. Achaogen has a consensus target price of $6.60, indicating a potential upside of 5,900.00%. Given Achaogen’s higher probable upside, analysts plainly believe Achaogen is more favorable than Synthorx.

Valuation and Earnings

This table compares Synthorx and Achaogen’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synthorx N/A N/A -$56.61 million ($6.59) -2.36
Achaogen $8.73 million 0.80 -$186.51 million ($3.70) -0.03

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

Insider and Institutional Ownership

64.7% of Synthorx shares are owned by institutional investors. Comparatively, 31.9% of Achaogen shares are owned by institutional investors. 1.7% of Synthorx shares are owned by company insiders. Comparatively, 7.8% of Achaogen shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Synthorx and Achaogen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synthorx N/A N/A N/A
Achaogen -2,136.94% -357.49% -127.68%

Summary

Synthorx beats Achaogen on 7 of the 12 factors compared between the two stocks.

Synthorx Company Profile

Synthorx, Inc., a biopharmaceutical company, focuses on the development of cytokine Synthorin programs for the treatment of cancer and autoimmune disorders in the United States. The company's lead product candidate is THOR-707, a variant of recombinant human IL-2 that is in the development in various solid tumor types as a single agent and in combination with an immune checkpoint inhibitor. It also develops IL-2 Synthorin for autoimmune indications; IL-10 Synthorin, a naturally occurring immune cell growth factor in humans for the treatment of immuno-oncology (IO); and IL-15 Synthorins, an immunoregulatory cytokine to treat IO. In addition, the company develops other Synthorin programs targeting undisclosed cytokines that play critical roles in the orchestration of anti-tumor responses by innate and adaptive immune cells. The company was formerly known as Alinos, Inc. and changed its name to Synthorx, Inc. in March 2014. Synthorx, Inc. was founded in 2014 and is headquartered in La Jolla, California.

Achaogen Company Profile

Achaogen, Inc., a late-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of antibacterial treatments against multi-drug resistant (MDR) gram-negative infections in the United States. The company is principally developing plazomicin for the treatment of serious bacterial infections, including urinary tract infections, blood stream infections, and other infections due to MDR enterobacteriaceae comprising carbapenem-resistant enterobacteriaceae. It is also involved in the development of antibacterial candidate C-Scape, an orally-administered combination of clavulanate and ceftibuten, which targets serious bacterial infections due to expanded spectrum beta-lactamases producing enterobacteriaceae; and therapeutic antibody discovery program. The company has license and collaboration agreements with Thermo Fisher Scientific, Inc. to develop and commercialize an assay to support plazomicin; Crystal Biosciences, Inc. to discover monoclonal antibodies against multiple targets; Ionis Pharmaceuticals, Inc. for certain patents relating to aminoglycoside antibacterial compounds and related know-how to develop and commercialize certain novel aminoglycoside antibacterial compounds; and Hovione Limited to manufacture the active pharmaceutical ingredient for plazomicin. The company was incorporated in 2002 and is based in South San Francisco, California.

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