Mirati Therapeutics (NASDAQ:MRTX) and Phibro Animal Health (NASDAQ:PAHC) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Volatility & Risk

Mirati Therapeutics has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500. Comparatively, Phibro Animal Health has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Insider & Institutional Ownership

97.7% of Mirati Therapeutics shares are held by institutional investors. Comparatively, 49.2% of Phibro Animal Health shares are held by institutional investors. 4.9% of Mirati Therapeutics shares are held by company insiders. Comparatively, 50.3% of Phibro Animal Health shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Mirati Therapeutics and Phibro Animal Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mirati Therapeutics N/A -51.59% -46.63%
Phibro Animal Health 7.90% 39.81% 10.53%

Earnings & Valuation

This table compares Mirati Therapeutics and Phibro Animal Health’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mirati Therapeutics N/A N/A -$70.42 million ($2.78) -15.32
Phibro Animal Health $820.00 million 2.09 $64.88 million $1.74 24.35

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

Dividends

Phibro Animal Health pays an annual dividend of $0.40 per share and has a dividend yield of 0.9%. Mirati Therapeutics does not pay a dividend. Phibro Animal Health pays out 23.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations for Mirati Therapeutics and Phibro Animal Health, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mirati Therapeutics 0 1 8 0 2.89
Phibro Animal Health 2 1 1 0 1.75

Mirati Therapeutics presently has a consensus price target of $52.00, suggesting a potential upside of 22.12%. Phibro Animal Health has a consensus price target of $40.75, suggesting a potential downside of 3.82%. Given Mirati Therapeutics’ stronger consensus rating and higher probable upside, research analysts clearly believe Mirati Therapeutics is more favorable than Phibro Animal Health.

Summary

Phibro Animal Health beats Mirati Therapeutics on 9 of the 15 factors compared between the two stocks.

About Mirati Therapeutics

Mirati Therapeutics, Inc., a clinical-stage oncology company, develops targeted therapeutics to address the genetic, epigenetic, and immunological promoters of cancer. The company is involved in developing sitravatinib, an oral spectrum-selective kinase inhibitor, which is in Phase II clinical for the treatment of solid tumor; and in Phase Ib clinical trial to treat non-small cell lung cancer (NCSLC) patients with CBL, chromosome 4q12, and RET genetic alterations, as well as mocetinostat, an orally administered spectrum-selective Class 1 histone deacetylase inhibitor that is in Phase II clinical trial in combination with durvalumab for the treatment of patients with NSCLC. Its preclinical development stage product candidate include KRAS G12C inhibitor program to address mutations and tumors. The company has a collaboration and license agreement with BeiGene, Ltd. to develop manufacture and commercialize sitravatinib. It also has collaboration with Astex Pharmaceuticals, Inc. and Merck & Co., Inc.; and Array BioPharma, Inc. to develop and commercialize products. Mirati Therapeutics, Inc. is headquartered in San Diego, California.

About Phibro Animal Health

Phibro Animal Health Corporation operates as a diversified animal health and mineral nutrition company primarily in the United States. It operates through three segments: Animal Health, Mineral Nutrition, and Performance Products. The company develops, manufactures, and markets products for a range of food animals, including poultry, swine, beef and dairy cattle, and aquaculture. Its animal health products also comprise antibacterials that are biological or chemical products used in the animal health industry to treat or to prevent diseases; anticoccidials primarily used to prevent and control the disease coccidiosis in poultry and cattle; anthelmintics to treat infestations of parasitic intestinal worms; and anti-bloat treatment products for cattle to control bloat in animals grazing on legume or wheat-pasture. In addition, the company offers nutritional specialty products, which enhance nutrition to help improve health and performance; and vaccines to prevent diseases primarily for the poultry and swine markets. Further, it manufactures and markets formulations and concentrations of trace minerals, such as zinc, manganese, copper, iron, and other compounds; and various specialty ingredients for use in the personal care, industrial chemical, and chemical catalyst industries. The company sells its animal health and mineral nutrition products through local sales offices to integrated poultry, swine, and cattle integrators, as well as through commercial animal feed manufacturers, wholesalers, and distributors. It also operates in Israel, Latin America, Canada, Europe, Africa, and the Asia/Pacific. The company was formerly known as Philipp Brothers Chemicals, Inc. and changed its name to Phibro Animal Health Corporation in July 2003. The company is headquartered in Teaneck, New Jersey. Phibro Animal Health Corporation is a subsidiary of BFI Co., LLC.

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