XOMA (NASDAQ: XOMA) and Soligenix (NASDAQ:SNGX) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Earnings and Valuation

This table compares XOMA and Soligenix’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
XOMA $5.56 million 48.12 -$53.53 million ($3.26) -10.08
Soligenix $10.45 million 1.63 -$3.24 million ($1.01) -1.93

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for XOMA and Soligenix, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
XOMA 0 1 2 0 2.67
Soligenix 0 0 2 0 3.00

XOMA currently has a consensus target price of $28.50, indicating a potential downside of 13.29%. Soligenix has a consensus target price of $5.25, indicating a potential upside of 169.23%. Given Soligenix’s stronger consensus rating and higher possible upside, analysts plainly believe Soligenix is more favorable than XOMA.

Profitability

This table compares XOMA and Soligenix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
XOMA -3.51% -1.14% 0.95%
Soligenix -90.93% -112.81% -71.98%

Insider and Institutional Ownership

33.5% of XOMA shares are held by institutional investors. Comparatively, 2.1% of Soligenix shares are held by institutional investors. 3.0% of XOMA shares are held by insiders. Comparatively, 5.0% of Soligenix shares are held by 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.

Risk and Volatility

XOMA has a beta of 3.2, meaning that its share price is 220% more volatile than the S&P 500. Comparatively, Soligenix has a beta of 2.18, meaning that its share price is 118% more volatile than the S&P 500.

About XOMA

XOMA Corporation is a development-stage biotechnology company. The Company focuses on the discovery and development of monoclonal antibody-based therapeutics. It has five products in its endocrine portfolio, two of which are developed as part of its XOMA Metabolism (XMet) platform. Its products include XOMA 358, XOMA 129, XOMA 213 and Gevokizumab. Its XOMA 358 is meant for long-acting treatment of hyperinsulinemic hypoglycemia. XOMA 129 is meant for rapid onset, short-acting treatment of severe acute hypoglycemia. XOMA 213 is a Phase II-ready product candidate targeting the prolactin receptor, as well as research-stage programs targeting the parathyroid receptor (PTH1R) and the adrenal corticotropic hormone (ACTH). Gevokizumab is a humanized monoclonal antibody with allosteric properties that has the potential to treat patients with a range of inflammatory diseases. Its technologies include Antibody Discovery Advanced Platform Technologies (ADAPT), ModulX and OptimX.

About Soligenix

Soligenix, Inc. is a late-stage biopharmaceutical company. The Company is focused on developing and commercializing products to treat rare diseases. The Company operates through two segments: BioTherapeutics and Vaccines/BioDefense. Its BioTherapeutics segment is developing a photodynamic therapy (SGX301) utilizing topical synthetic hypericin activated with safe visible light for the treatment of cutaneous T-cell lymphoma (CTCL), formulations of oral beclomethasone 17,21-dipropionate (BDP) for the prevention/treatment of gastrointestinal (GI) disorders characterized by severe inflammation, and its innate defense regulator (IDR) technology, dusquetide (SGX942) for the treatment of oral mucositis in head and neck cancer. Its Vaccines/BioDefense business segment includes active development programs for RiVax, its ricin toxin vaccine candidate, OrbeShield, its GI acute radiation syndrome (GI ARS) therapeutic candidate, and SGX943, its melioidosis therapeutic candidate.

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