La Jolla Pharmaceutical (NASDAQ: LJPC) and Catabasis Pharmaceuticals (NASDAQ:CATB) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.
Valuation & Earnings
This table compares La Jolla Pharmaceutical and Catabasis Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|La Jolla Pharmaceutical||$620,000.00||1,246.47||-$78.18 million||($5.10)||-6.84|
|Catabasis Pharmaceuticals||N/A||N/A||-$36.06 million||($1.51)||-1.13|
Catabasis Pharmaceuticals has higher revenue, but lower earnings than La Jolla Pharmaceutical. La Jolla Pharmaceutical is trading at a lower price-to-earnings ratio than Catabasis Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
32.5% of Catabasis Pharmaceuticals shares are owned by institutional investors. 25.5% of La Jolla Pharmaceutical shares are owned by insiders. Comparatively, 40.7% of Catabasis Pharmaceuticals shares are owned by 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 La Jolla Pharmaceutical and Catabasis Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|La Jolla Pharmaceutical||N/A||-88.55%||-78.19%|
This is a breakdown of recent ratings and price targets for La Jolla Pharmaceutical and Catabasis Pharmaceuticals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|La Jolla Pharmaceutical||0||0||6||0||3.00|
La Jolla Pharmaceutical currently has a consensus target price of $54.60, indicating a potential upside of 56.49%. Catabasis Pharmaceuticals has a consensus target price of $5.42, indicating a potential upside of 218.63%. Given Catabasis Pharmaceuticals’ higher possible upside, analysts plainly believe Catabasis Pharmaceuticals is more favorable than La Jolla Pharmaceutical.
Risk and Volatility
La Jolla Pharmaceutical has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500. Comparatively, Catabasis Pharmaceuticals has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.
La Jolla Pharmaceutical beats Catabasis Pharmaceuticals on 6 of the 11 factors compared between the two stocks.
La Jolla Pharmaceutical Company Profile
La Jolla Pharmaceutical Company is a biopharmaceutical company. The Company is focused on the discovery, development and commercialization of therapies to improve outcomes in patients suffering from life-threatening diseases. LJPC-501 is its formulation of angiotensin II for the potential treatment of catecholamine-resistant hypotension (CRH). It has initiated a Phase III trial of LJPC-501 for the treatment of CRH, called the Angiotensin II for the Treatment of High-Output Shock 3 (ATHOS) Phase III trial. LJPC-401 is its formulation of synthetic human hepcidin for the potential treatment of conditions characterized by iron overload, such as hereditary hemochromatosis, beta thalassemia, sickle cell disease and myelodysplastic syndrome. LJPC-30S is its next-generation gentamicin derivative program that is focused on therapeutics for the potential treatment of serious bacterial infections, as well as rare genetic disorders, such as cystic fibrosis and Duchenne muscular dystrophy.
Catabasis Pharmaceuticals Company Profile
Catabasis Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on the discovery, development and commercialization of therapeutics based on its Safely Metabolized And Rationally Targeted (SMART), a linker drug discovery platform. The SMART linker drug discovery platform enables to engineer product candidates that can modulate multiple targets in a disease. The Company’s primary focus is on treatments for rare diseases. The Company is also developing other product candidates for the treatment of lipid disorders. The Company’s CAT-1004 is a SMART linker conjugate of salicylate, a non-steroidal anti-inflammatory drug, and the omega-3 fatty acid docosahexaenoic acid (DHA), a naturally occurring unsaturated fatty acid with anti-inflammatory properties. Its CAT-2000 series product candidates inhibit the Sterol Regulatory Element Binding Protein (SREBP) pathway. The Company’s CAT-4001 is a SMART linker conjugate of monomethyl fumarate and DHA.
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