Analyzing Rhythm Pharmaceuticals (NASDAQ:RYTM) & Belite Bio (NASDAQ:BLTE)

Belite Bio (NASDAQ:BLTE) and Rhythm Pharmaceuticals (NASDAQ:RYTM) are both mid-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Profitability

This table compares Belite Bio and Rhythm Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Belite Bio	N/A	-34.28%	-33.05%
Rhythm Pharmaceuticals	-110.32%	-433.21%	-46.38%

Volatility and Risk

Belite Bio has a beta of -1.46, suggesting that its stock price is 246% less volatile than the S&P 500. Comparatively, Rhythm Pharmaceuticals has a beta of 2, suggesting that its stock price is 100% more volatile than the S&P 500.

Earnings and Valuation

This table compares Belite Bio and Rhythm Pharmaceuticals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Belite Bio	N/A	N/A	-$36.14 million	($1.92)	-92.14
Rhythm Pharmaceuticals	$130.13 million	52.76	-$260.60 million	($3.10)	-33.18

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

Analyst Ratings

This is a summary of current recommendations and price targets for Belite Bio and Rhythm Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Belite Bio	1	1	6	0	2.63
Rhythm Pharmaceuticals	2	1	14	1	2.78

Belite Bio currently has a consensus target price of $179.75, suggesting a potential upside of 1.61%. Rhythm Pharmaceuticals has a consensus target price of $131.29, suggesting a potential upside of 27.62%. Given Rhythm Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Rhythm Pharmaceuticals is more favorable than Belite Bio.

Institutional and Insider Ownership

0.5% of Belite Bio shares are owned by institutional investors. 13.3% of Belite Bio shares are owned by insiders. Comparatively, 6.1% of Rhythm Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

About Belite Bio

Belite Bio, Inc, a clinical stage biopharmaceutical drug development company, engages in the research and development of novel therapeutics targeting retinal degenerative eye diseases with unmet medical needs in the United States. The company’s lead product candidate is LBS-008 (Tinlarebant), an orally administered once-a-day tablet for maintaining the health and integrity of retinal tissues in autosomal recessive Stargardt disease and geographic atrophy patients. It is also developing LBS-009, an anti-retinol binding protein 4 oral therapy that is in the preclinical development phase targeting liver disease, including non-alcoholic fatty liver disease, nonalcoholic steatohepatitis, and type 2 diabetes. Belite Bio, Inc was founded in 2016 and is based in San Diego, California. Belite Bio, Inc is a subsidiary of Lin Bioscience International Ltd.

About Rhythm Pharmaceuticals

Rhythm Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the rare neuroendocrine diseases. The company's lead product candidate is IMCIVREE (setmelanotide), a rare melanocortin-4 receptor for the treatment of pro-opiomelanocortin (POMC), proprotein convertase subtilisin/kexin type 1, leptin receptor (LEPR) deficiency obesity, and Bardet-Biedl and Alström syndrome. It is in Phase 3 clinical trials for treating POMC or LEPR heterozygous deficiency obesities, steroid receptor coactivator 1 deficiency obesity, SH2B1 deficiency obesity, MC4 receptor deficiency obesity, and other MC4R disorders. The company has licensing agreements with LG Chem, Ltd; Ipsen Pharma S.A.S; Camurus; RareStone Group Ltd.; and LG Chem, Ltd. The company was formerly known as Rhythm Metabolic, Inc. and changed its name to Rhythm Pharmaceuticals, Inc. in October 2015. Rhythm Pharmaceuticals, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.