Rafael (NYSE:RFL – Get Free Report) and Traws Pharma (NASDAQ:TRAW – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.
Profitability
This table compares Rafael and Traws Pharma’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rafael | -3,321.74% | -41.27% | -35.32% |
| Traws Pharma | N/A | -23,868.92% | -165.52% |
Volatility and Risk
Rafael has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, Traws Pharma has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.
Valuation & Earnings
This table compares Rafael and Traws Pharma”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rafael | $920,000.00 | 72.80 | -$30.52 million | ($0.68) | -1.89 |
| Traws Pharma | $2.79 million | 2.07 | $9.17 million | ($1.74) | -0.22 |
Traws Pharma has higher revenue and earnings than Rafael. Rafael is trading at a lower price-to-earnings ratio than Traws Pharma, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
11.3% of Rafael shares are held by institutional investors. Comparatively, 8.0% of Traws Pharma shares are held by institutional investors. 32.9% of Rafael shares are held by company insiders. Comparatively, 7.6% of Traws Pharma shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations and price targets for Rafael and Traws Pharma, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rafael | 1 | 0 | 0 | 0 | 1.00 |
| Traws Pharma | 1 | 4 | 0 | 0 | 1.80 |
Traws Pharma has a consensus price target of $1.00, suggesting a potential upside of 165.96%. Given Traws Pharma’s stronger consensus rating and higher possible upside, analysts plainly believe Traws Pharma is more favorable than Rafael.
About Rafael
Rafael Holdings, Inc. primarily engages in holding interests in clinical and early-stage pharmaceutical companies, and commercial real estate assets in the United States and Israel. It operates in two segments, Healthcare and Real Estate. The company engages in the development and commercialization of therapies that exploit the metabolic differences between normal cells and cancer cells. Its lead drug candidate is CPI-613 (devimistat), currently under Phase III clinical study for the treatment of metastatic pancreatic cancer and acute myeloid leukemia. The company is also involved in developing Promitil, a molecule designed for the targeted delivery of mitomycin-C in a proprietary prodrug form, completed Phase 1B clinical studies; Folate-targeted Promitil (Promi-Fol) which is aimed at local treatment (intravesical) of superficial bladder cancer; and Promi-Dox, a highly potent dual drug liposome with MLP and doxorubicin targeting a potential basket of tumors. In addition, it engages in the development of surgical and procedural devices, including orthopedic arthroscopy instrumentation. Rafael Holdings, Inc. was incorporated in 2017 and is headquartered in Newark, New Jersey.
About Traws Pharma
Traws Pharma, Inc., a clinical stage biopharmaceutical company, focuses on developing small molecule oral product candidates for respiratory viral diseases and cancer. The company is developing investigational novel therapies for influenza and COVID19 that are designed to address treatment resistance, such as TRX01 (travatrelvir), a Mpro/3CL inhibitor in development for the treatment of COVID19; and TRX100 (viroxavir), an endonuclease inhibitor in development for the treatment of pandemic influenza. It is also developing narazaciclib, a multi-kinase CDK4/6 inhibitor, which is in Phase 1/2 clinical trials in patients with cancer, with or without co-administration of letrozole to define the recommended phase 2 dose for further development in endometrial cancer; and oral rigosertib, which is administered alone or in combination for investigation in various cancers. The company was formerly known as Onconova Therapeutics, Inc. and changed its name to Traws Pharma, Inc. in April 2024. Traws Pharma, Inc. was incorporated in 1998 and is headquartered in Newtown, Pennsylvania.
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