Paratek Pharmaceuticals (NASDAQ: PRTK) and Aradigm Corporation (NASDAQ:ARDM) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
Valuation & Earnings
This table compares Paratek Pharmaceuticals and Aradigm Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Paratek Pharmaceuticals||$7.56 million||89.60||-$90.38 million||($4.00)||-6.10|
|Aradigm Corporation||$9.54 million||7.09||-$14.99 million||($1.27)||-3.69|
Aradigm Corporation has higher revenue and earnings than Paratek Pharmaceuticals. Paratek Pharmaceuticals is trading at a lower price-to-earnings ratio than Aradigm Corporation, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Paratek Pharmaceuticals has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Aradigm Corporation has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Paratek Pharmaceuticals and Aradigm Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Paratek Pharmaceuticals currently has a consensus price target of $39.50, suggesting a potential upside of 61.89%. Aradigm Corporation has a consensus price target of $10.00, suggesting a potential upside of 113.22%. Given Aradigm Corporation’s higher probable upside, analysts clearly believe Aradigm Corporation is more favorable than Paratek Pharmaceuticals.
Institutional & Insider Ownership
82.4% of Paratek Pharmaceuticals shares are held by institutional investors. Comparatively, 33.6% of Aradigm Corporation shares are held by institutional investors. 4.9% of Paratek Pharmaceuticals shares are held by company insiders. Comparatively, 7.3% of Aradigm Corporation shares are held 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.
This table compares Paratek Pharmaceuticals and Aradigm Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Paratek Pharmaceuticals beats Aradigm Corporation on 8 of the 14 factors compared between the two stocks.
Paratek Pharmaceuticals Company Profile
Paratek Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on the development and commercialization of therapeutics based upon tetracycline chemistry. Its product candidates are the antibacterials omadacycline and sarecycline. Omadacycline is an antibiotic being developed for use as an empiric monotherapy option for patients suffering from serious, community-acquired bacterial infections. Sarecycline is a tetracycline-derived compound designed for use in the treatment of acne and rosacea. Its other product candidates are tetracycline-derived, molecular entities and are designed to utilize the recognized immune-modulation, anti-inflammatory and other beneficial properties of the tetracycline class. These research stage programs include product candidates for multiple sclerosis, spinal muscular atrophy, systemic inflammatory diseases, such as rheumatoid arthritis and inflammatory bowel diseases.
Aradigm Corporation Company Profile
Aradigm Corporation is a pharmaceutical company focused on the development and commercialization of products for the treatment and prevention of severe respiratory diseases. The Company’s lead product candidate is Pulmaquin inhaled ciprofloxacin, which is in Phase III clinical trials. It offers AERx pulmonary drug delivery platform and other technologies. Its partnered programs under development include Inhaled Ciprofloxacin. It is also engaged in developing Smoking Cessation Therapy (ARD-1600 Inhaled Nicotine). Its lead development candidates are its formulations of the potent antibiotic ciprofloxacin (Pulmaquin (ARD-3150) and Lipoquin (ARD-3100)) that are delivered by inhalation for the management of infections associated with the severe respiratory diseases, such as cystic fibrosis (CF) and non-cystic fibrosis bronchiectasis (BE). Pulmaquin uses slow release liposomal formulation (Lipoquin) mixed with a small amount of ciprofloxacin dissolved in an aqueous medium.
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