Fractyl Health (NASDAQ:GUTS – Get Free Report) and Protara Therapeutics (NASDAQ:TARA – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Insider and Institutional Ownership
38.1% of Protara Therapeutics shares are owned by institutional investors. 26.1% of Fractyl Health shares are owned by insiders. Comparatively, 8.4% of Protara Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Fractyl Health and Protara Therapeutics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fractyl Health | $90,000.00 | 790.78 | -$68.69 million | ($1.84) | -0.24 |
| Protara Therapeutics | N/A | N/A | -$57.44 million | ($1.32) | -3.74 |
Protara Therapeutics has lower revenue, but higher earnings than Fractyl Health. Protara Therapeutics is trading at a lower price-to-earnings ratio than Fractyl Health, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Fractyl Health has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, Protara Therapeutics has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.
Profitability
This table compares Fractyl Health and Protara Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fractyl Health | N/A | -2,896.77% | -104.24% |
| Protara Therapeutics | N/A | -36.38% | -33.81% |
Analyst Recommendations
This is a summary of recent ratings and price targets for Fractyl Health and Protara Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fractyl Health | 1 | 1 | 3 | 0 | 2.40 |
| Protara Therapeutics | 1 | 0 | 5 | 1 | 2.86 |
Fractyl Health currently has a consensus price target of $5.40, suggesting a potential upside of 1,103.74%. Protara Therapeutics has a consensus price target of $21.40, suggesting a potential upside of 333.20%. Given Fractyl Health’s higher probable upside, research analysts clearly believe Fractyl Health is more favorable than Protara Therapeutics.
Summary
Protara Therapeutics beats Fractyl Health on 8 of the 13 factors compared between the two stocks.
About Fractyl Health
Fractyl Health, Inc., a metabolic therapeutics company, develops therapies for the treatment of type 2 diabetes (T2D) and obesity. The company develops Revita DMR System (Revita), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high fat and high sugar diet, which can initiate T2D and obesity in humans. It also develops Rejuva, a novel adeno-associated virus delivered pancreatic gene therapy platform that is designed to enable long-term remission of T2D and obesity by durably altering metabolic hormone function in the pancreatic islet cells of patients. Fractyl Health, Inc. was formerly known as Fractyl Laboratories Inc. and changed its name to Fractyl Health, Inc. on June 09, 2021. The company was incorporated in 2010 and is headquartered in Burlington, Massachusetts.
About Protara Therapeutics
Protara Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in advancing transformative therapies for the treatment of cancer and rare diseases. The company's lead program is TARA-002, an investigational cell therapy, which is in Phase II clinical trial for the treatment of non-muscle invasive bladder cancer and lymphatic malformations. It is also developing intravenous choline chloride, an investigational phospholipid substrate replacement therapy that is in Phase II clinical trial for patients receiving parenteral nutrition. The company is headquartered in New York, New York.
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