Vaccinex (NASDAQ:VCNX) and Paratek Pharmaceuticals (NASDAQ:PRTK) Critical Analysis

Vaccinex (NASDAQ:VCNX) and Paratek Pharmaceuticals (NASDAQ:PRTK) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Volatility & Risk

Vaccinex has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, Paratek Pharmaceuticals has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Vaccinex and Paratek Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vaccinex 0 1 1 0 2.50
Paratek Pharmaceuticals 0 0 6 0 3.00

Vaccinex currently has a consensus price target of $7.00, suggesting a potential upside of 286.74%. Paratek Pharmaceuticals has a consensus price target of $22.40, suggesting a potential upside of 301.43%. Given Paratek Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Paratek Pharmaceuticals is more favorable than Vaccinex.

Earnings & Valuation

This table compares Vaccinex and Paratek Pharmaceuticals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vaccinex $520,000.00 69.94 -$31.86 million ($2.47) -0.73
Paratek Pharmaceuticals $16.54 million 15.31 -$128.79 million ($3.93) -1.42

Vaccinex has higher earnings, but lower revenue than Paratek Pharmaceuticals. Paratek Pharmaceuticals is trading at a lower price-to-earnings ratio than Vaccinex, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

5.9% of Vaccinex shares are held by institutional investors. Comparatively, 46.8% of Paratek Pharmaceuticals shares are held by institutional investors. 68.6% of Vaccinex shares are held by insiders. Comparatively, 8.3% of Paratek Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Vaccinex and Paratek Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vaccinex N/A -2,277.96% -472.22%
Paratek Pharmaceuticals -367.05% N/A -45.88%

Summary

Paratek Pharmaceuticals beats Vaccinex on 8 of the 14 factors compared between the two stocks.

About Vaccinex

Vaccinex, Inc., a clinical-stage biotechnology company, discovers and develops bio therapeutics to treat serious diseases and conditions with unmet medical needs, including cancer, neurodegenerative diseases, and autoimmune disorders. Its lead product candidate is pepinemab that is in clinical development stage for the treatment of non-small cell lung cancer (NSCLC), osteosarcoma, melanoma, and Huntington's disease. The company is also developing VX5, a human antibody to CXCL13 that is in preclinical development for the treatment of MS and potentially for other autoimmune disorders; VX25, a bi-specific natural killer T (NKT) cell stimulator, for the therapeutic application of NKT cell stimulation for cancer immunotherapy; BVX20, an investigational and humanized monoclonal antibody for the treatment of for multiple sclerosis. It has a clinical trial collaboration and supply agreement with Merck KGaA to test pepinemab in combination with avelumab checkpoint inhibitor in NSCLC patients. Vaccinex, Inc. was founded in 2001 and is headquartered in Rochester, New York.

About Paratek Pharmaceuticals

Paratek Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the development and commercialization life-saving therapies for life-threatening diseases or other public health threats for civilian, government, and military use. Its lead product candidates include NUZYRA, a once-daily oral and intravenous broad-spectrum antibiotic for the treatment of adult patients with community-acquired bacterial pneumonia and acute bacterial skin and skin structure infections caused by susceptible pathogens; and SEYSARA, a tetracycline designed for the treatment of moderate to severe acne vulgaris. The company has license and collaboration agreements with Zai Lab (Shanghai) Co., Ltd. and Allergan plc; license agreement with Tufts University to develop and commercialize products for the treatment or prevention of bacterial or microbial diseases, or medical conditions; and cooperative research and development agreement with the U.S. Army Medical Research Institute of Infectious Diseases to study omadacycline against pathogenic agents causing infectious diseases. Paratek Pharmaceuticals, Inc. was founded in 1996 and is headquartered in Boston, Massachusetts.

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