Connect Biopharma (NASDAQ:CNTB – Get Free Report) and BioAtla (NASDAQ:BCAB – Get Free Report) are both small-cap healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.
Risk & Volatility
Connect Biopharma has a beta of -0.16, suggesting that its share price is 116% less volatile than the S&P 500. Comparatively, BioAtla has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.
Insider and Institutional Ownership
58.7% of Connect Biopharma shares are owned by institutional investors. Comparatively, 77.2% of BioAtla shares are owned by institutional investors. 22.6% of Connect Biopharma shares are owned by company insiders. Comparatively, 9.3% of BioAtla shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Connect Biopharma and BioAtla’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Connect Biopharma | N/A | -165.41% | -121.58% |
| BioAtla | N/A | N/A | -289.67% |
Earnings & Valuation
This table compares Connect Biopharma and BioAtla”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Connect Biopharma | $2.95 million | 16.74 | -$55.48 million | ($1.19) | -0.66 |
| BioAtla | $8.50 million | 0.41 | -$59.61 million | ($25.45) | -0.08 |
Connect Biopharma has higher earnings, but lower revenue than BioAtla. Connect Biopharma is trading at a lower price-to-earnings ratio than BioAtla, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Connect Biopharma and BioAtla, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Connect Biopharma | 1 | 0 | 8 | 0 | 2.78 |
| BioAtla | 1 | 0 | 1 | 0 | 2.00 |
Connect Biopharma currently has a consensus target price of $5.88, suggesting a potential upside of 648.41%. BioAtla has a consensus target price of $200.00, suggesting a potential upside of 9,515.38%. Given BioAtla’s higher possible upside, analysts clearly believe BioAtla is more favorable than Connect Biopharma.
Summary
Connect Biopharma beats BioAtla on 7 of the 13 factors compared between the two stocks.
About Connect Biopharma
Connect Biopharma Holdings Limited, a clinical-stage biopharmaceutical company, engages in the development of therapies for the treatment of T cell-driven inflammatory diseases. The company is building a pipeline of small molecules and antibodies using functional T cell assays to screen and discover potent product candidates against validated immune targets. Its lead product candidate is rademikibart (formerly CBP-201), an antibody designed to target interleukin-4 receptor alpha, which is a validated target for the treatment of inflammatory diseases such as atopic dermatitis and asthma, currently under Phase 3 studies; and icanbelimod (formerly CBP-307), an oral small molecule Sphingosine 1-Phosphate Receptor 1 modulator, currently under Phase 2 clinical for the treatment of ulcerative colitis and Crohn's disease. The company was founded in 2012 and is based in San Diego, California.
About BioAtla
BioAtla, Inc., a clinical-stage biopharmaceutical company, develops specific and selective antibody-based therapeutics for the treatment of solid tumor cancer. The company's lead clinical stage product candidates include mecbotamab vedotin (BA3011), a conditionally active biologic (CAB) antibody-drug conjugate (ADC), which is in Phase II clinical trial for treating undifferentiated pleomorphic sarcoma and non-small cell lung cancer (NSCLC); and ozuriftabmab vedotin (BA3021), a CAB ADC that is in Phase II clinical trial for the treatment of melanoma and squamous cell cancer of the head and neck. It is also developing Evalstotug (BA3071), a CAB anti-cytotoxic T-lymphocyte-associated antigen 4 antibody, which is in Phase II clinical trial for treating melanoma, carcinomas, and NSCLC; and BA3182, a bispecific candidate that is in Phase 1 study for the treatment of adenocarcinomas, as well as BA3361, which is in preclinical studies for treating multiple tumor types. The company was founded in 2007 and is headquartered in San Diego, California.
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