Analyzing Rigel Pharmaceuticals (RIGL) & Paratek Pharmaceuticals (NASDAQ:PRTK)

Paratek Pharmaceuticals (NASDAQ: PRTK) and Rigel Pharmaceuticals (NASDAQ:RIGL) are both small-cap healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Risk and Volatility

Paratek Pharmaceuticals has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Rigel Pharmaceuticals has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Institutional and Insider Ownership

84.3% of Paratek Pharmaceuticals shares are held by institutional investors. Comparatively, 74.5% of Rigel Pharmaceuticals shares are held by institutional investors. 4.9% of Paratek Pharmaceuticals shares are held by insiders. Comparatively, 5.2% of Rigel Pharmaceuticals shares are held 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.

Profitability

This table compares Paratek Pharmaceuticals and Rigel Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Paratek Pharmaceuticals -1,236.38% -100.84% -58.71%
Rigel Pharmaceuticals N/A -102.26% -80.57%

Analyst Recommendations

This is a summary of current recommendations and price targets for Paratek Pharmaceuticals and Rigel Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paratek Pharmaceuticals 0 0 6 1 3.14
Rigel Pharmaceuticals 0 0 5 0 3.00

Paratek Pharmaceuticals currently has a consensus price target of $42.71, suggesting a potential upside of 139.30%. Rigel Pharmaceuticals has a consensus price target of $5.80, suggesting a potential upside of 42.51%. Given Paratek Pharmaceuticals’ stronger consensus rating and higher probable upside, research analysts clearly believe Paratek Pharmaceuticals is more favorable than Rigel Pharmaceuticals.

Earnings & Valuation

This table compares Paratek Pharmaceuticals and Rigel Pharmaceuticals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Paratek Pharmaceuticals $30,000.00 16,624.30 -$111.63 million ($3.73) -4.79
Rigel Pharmaceuticals $20.38 million 29.25 -$69.21 million ($0.59) -6.90

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

Summary

Paratek Pharmaceuticals beats Rigel Pharmaceuticals on 9 of the 15 factors compared between the two stocks.

About Paratek Pharmaceuticals

Paratek Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on the development and commercialization of therapeutics based upon tetracycline chemistry. Its product candidates are the antibacterials omadacycline and sarecycline. Omadacycline is an antibiotic being developed for use as an empiric monotherapy option for patients suffering from serious, community-acquired bacterial infections. Sarecycline is a tetracycline-derived compound designed for use in the treatment of acne and rosacea. Its other product candidates are tetracycline-derived, molecular entities and are designed to utilize the recognized immune-modulation, anti-inflammatory and other beneficial properties of the tetracycline class. These research stage programs include product candidates for multiple sclerosis, spinal muscular atrophy, systemic inflammatory diseases, such as rheumatoid arthritis and inflammatory bowel diseases.

About Rigel Pharmaceuticals

Rigel Pharmaceuticals, Inc. is a clinical-stage biotechnology company. The Company is engaged in the discovering, developing and providing novel small molecule drugs that improve the lives of patients with immune and hematological disorders, cancer and rare diseases. The Company’s pioneering research focuses on signaling pathways that are critical to disease mechanisms. The Company’s clinical programs include clinical trials of fostamatinib, an oral spleen tyrosine kinase (SYK) inhibitor, in a number of indications. The Company has submitted a new drug application (NDA) to the United States food and drug administration (FDA) for fostamatinib in patients with chronic or persistent immune thrombocytopenia (ITP). In addition, the Company has product candidates in development with partners BerGenBio AS, Daiichi Sankyo and Aclaris Therapeutics. The Company is engaged in conducting research in the disease areas of inflammation/immunology and muscle wasting/muscle endurance.

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