C4 Therapeutics (NASDAQ:CCCC – Get Free Report) and Fractyl Health (NASDAQ:GUTS – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.
Insider and Institutional Ownership
78.8% of C4 Therapeutics shares are owned by institutional investors. 5.6% of C4 Therapeutics shares are owned by insiders. Comparatively, 8.4% of Fractyl Health shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility and Risk
C4 Therapeutics has a beta of 2.94, meaning that its stock price is 194% more volatile than the S&P 500. Comparatively, Fractyl Health has a beta of 2.34, meaning that its stock price is 134% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| C4 Therapeutics | 1 | 0 | 4 | 0 | 2.60 |
| Fractyl Health | 1 | 1 | 3 | 0 | 2.40 |
C4 Therapeutics currently has a consensus price target of $7.67, suggesting a potential upside of 120.62%. Fractyl Health has a consensus price target of $5.50, suggesting a potential upside of 758.03%. Given Fractyl Health’s higher probable upside, analysts clearly believe Fractyl Health is more favorable than C4 Therapeutics.
Valuation and Earnings
This table compares C4 Therapeutics and Fractyl Health”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| C4 Therapeutics | $35.95 million | 11.89 | -$104.99 million | ($1.00) | -3.48 |
| Fractyl Health | $90,000.00 | 1,133.72 | -$140.95 million | ($0.88) | -0.73 |
C4 Therapeutics has higher revenue and earnings than Fractyl Health. C4 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.
Profitability
This table compares C4 Therapeutics and Fractyl Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| C4 Therapeutics | -289.44% | -45.45% | -30.90% |
| Fractyl Health | N/A | -1,362.10% | -84.89% |
Summary
C4 Therapeutics beats Fractyl Health on 8 of the 14 factors compared between the two stocks.
About C4 Therapeutics
C4 Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops novel therapeutic candidates to degrade disease-causing proteins for the treatment of cancer, neurodegenerative conditions, and other diseases. Its lead product candidate is CFT7455, an orally bioavailable MonoDAC degrader of protein that is in Phase 1/2 trial targeting IKZF1 and IKZF3 for multiple myeloma and non-Hodgkin lymphomas, including peripheral T-cell lymphoma and mantle cell lymphoma, currently under Phase 1/2 clinical trials. The company is also developing CFT1946, an orally bioavailable BiDAC degrader targeting V600X mutant BRAF to treat melanoma, non-small cell lung cancer (NSCLC), colorectal cancer, and other solid malignancies, currently under Phase 1/2 clinical trials; and CFT8919, an orally bioavailable, allosteric, and mutant-selective BiDAC degrader of epidermal growth factor receptor, or EGFR, with an L858R mutation in NSCLC. It has strategic collaborations with F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc.; Biogen MA, Inc.; Betta Pharmaceuticals, Co., Ltd.; and Merck Sharp & Dohme, LLC, as well as Calico Life Sciences LLC. The company was incorporated in 2015 and is headquartered in Watertown, Massachusetts.
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.
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