CASI Pharmaceuticals (NASDAQ:CASI – Get Free Report) and Phathom Pharmaceuticals (NASDAQ:PHAT – Get Free Report) are both small-cap healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.
Profitability
This table compares CASI Pharmaceuticals and Phathom Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CASI Pharmaceuticals | -183.93% | N/A | -131.54% |
| Phathom Pharmaceuticals | -41.34% | N/A | -20.81% |
Earnings and Valuation
This table compares CASI Pharmaceuticals and Phathom Pharmaceuticals”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CASI Pharmaceuticals | $26.85 million | 0.10 | -$39.26 million | ($3.01) | -0.07 |
| Phathom Pharmaceuticals | $239.66 million | 2.34 | -$221.25 million | ($1.28) | -5.41 |
CASI Pharmaceuticals has higher earnings, but lower revenue than Phathom Pharmaceuticals. Phathom Pharmaceuticals is trading at a lower price-to-earnings ratio than CASI Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
CASI Pharmaceuticals has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Phathom Pharmaceuticals has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for CASI Pharmaceuticals and Phathom Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CASI Pharmaceuticals | 1 | 0 | 0 | 0 | 1.00 |
| Phathom Pharmaceuticals | 1 | 1 | 7 | 1 | 2.80 |
Phathom Pharmaceuticals has a consensus target price of $20.67, indicating a potential upside of 198.65%. Given Phathom Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Phathom Pharmaceuticals is more favorable than CASI Pharmaceuticals.
Institutional and Insider Ownership
22.2% of CASI Pharmaceuticals shares are owned by institutional investors. Comparatively, 99.0% of Phathom Pharmaceuticals shares are owned by institutional investors. 21.2% of CASI Pharmaceuticals shares are owned by company insiders. Comparatively, 9.3% of Phathom Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Phathom Pharmaceuticals beats CASI Pharmaceuticals on 10 of the 14 factors compared between the two stocks.
About CASI Pharmaceuticals
CASI Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes therapeutics and pharmaceutical products in the People's Republic of China, the United States, and internationally. It offers EVOMELA, an intravenous formulation of melphalan for use as a conditioning treatment prior to stem cell transplantation, and as a palliative treatment for patients with multiple myeloma. The company's other hematology/oncology assets in pipeline include CNCT 19, an autologous CD19 CAR-T investigative product; BI-1206, novel anti-Fc?RIIB antibody, for the treatment of solid tumors and relapsed/refractory non-hodgkin lymphoma; CB-5339, a novel VCP/p97 inhibitor that focuses on valosin-containing protein (VCP)/p97 as a novel target in protein homeostasis, DNA damage response, and other cellular stress pathways for therapeutic use in the treatment of patients with various malignancies; CID-103, a human IgG1 anti-CD38 monoclonal antibody; and Thiotepa, a chemotherapeutic agent, which has various indications, including use as a conditioning treatment for use prior to certain allogeneic haemopoietic stem cell transplants. The company has licensing agreements with Juventas Cell Therapy Ltd.; BioInvent International AB; Black Belt Therapeutics Limited; Cleave Therapeutics, Inc.; and Acrotech Biopharma L.L.C. to develop and commercialize its commercial product EVOMELA. It also has distribution agreements with China Resources Pharmaceutical Commercial Group International Trading Co., Ltd; Pharmathen Global BV; and Riemser Pharma GmbH. CASI Pharmaceuticals, Inc. was incorporated in 1991 and is based in Beijing, the People's Republic of China.
About Phathom Pharmaceuticals
Phathom Pharmaceuticals, Inc., biopharmaceutical company, focuses on developing and commercializing treatments for gastrointestinal diseases. The company has the rights in the United States, Europe, and Canada for an investigational potassium-competitive acid blocker (P-CAB) that blocks acid secretion in the stomach. It is also developing vonoprazan for the treatment of erosive gastroesophageal reflux disease; and in combination with antibiotics for the treatment of Helicobacter pylori infection. The company was incorporated in 2018 and is headquartered in Florham Park, New Jersey.
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