ProPhase Labs (NASDAQ:PRPH – Get Free Report) and Gain Therapeutics (NASDAQ:GANX – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Analyst Ratings
This is a breakdown of recent recommendations for ProPhase Labs and Gain Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ProPhase Labs | 1 | 0 | 0 | 0 | 1.00 |
| Gain Therapeutics | 1 | 0 | 7 | 0 | 2.75 |
Gain Therapeutics has a consensus price target of $7.86, suggesting a potential upside of 300.87%. Given Gain Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Gain Therapeutics is more favorable than ProPhase Labs.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ProPhase Labs | $5.59 million | 2.10 | -$53.36 million | ($0.58) | -0.49 |
| Gain Therapeutics | $50,000.00 | 1,409.24 | -$20.41 million | ($0.63) | -3.11 |
Gain Therapeutics has lower revenue, but higher earnings than ProPhase Labs. Gain Therapeutics is trading at a lower price-to-earnings ratio than ProPhase Labs, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ProPhase Labs and Gain Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ProPhase Labs | N/A | -262.42% | -76.48% |
| Gain Therapeutics | N/A | -289.10% | -155.11% |
Risk and Volatility
ProPhase Labs has a beta of -0.28, indicating that its stock price is 128% less volatile than the S&P 500. Comparatively, Gain Therapeutics has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500.
Institutional and Insider Ownership
9.4% of ProPhase Labs shares are held by institutional investors. Comparatively, 12.0% of Gain Therapeutics shares are held by institutional investors. 9.6% of ProPhase Labs shares are held by company insiders. Comparatively, 7.2% of Gain Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Gain Therapeutics beats ProPhase Labs on 7 of the 13 factors compared between the two stocks.
About ProPhase Labs
ProPhase Labs, Inc. develops and commercializes novel drugs, dietary supplements, and compounds in the United States. It operates through two segments: Diagnostic Services and Consumer Products. The company provides a range of TK supplements, including Legendz XL for male sexual health; and Triple Edge XL, an energy and stamina booster. It offers contract manufacturing services, such as product development, pre-commercialization, production, warehousing, and distribution; COVID-19 diagnostic information services to a range of customers, including health plans, third party payers, and government organizations; and respiratory pathogen panel molecular testing services, as well as personal genomics products and services. In addition, the company involved in the research, development, manufacture, distribution, marketing, and sale of over the counter (OTC) consumer healthcare products and dietary supplements; and retail operations. The company was formerly known as The Quigley Corporation. ProPhase Labs, Inc. was founded in 1989 and is headquartered in Garden City, New York.
About Gain Therapeutics
Gain Therapeutics, Inc., a biotechnology company, develops novel small molecule therapeutics to treat diseases across various therapeutic areas. Its drug discovery platform Magellan discovers novel allosteric binding sites in a disease; identifies proprietary small molecules that bind these sites to modulate protein function; and treats the underlying cause of the disease. The company's lead drug candidate, GT-02287 for the treatment of GBA1 Parkinson's disease is being evaluated in a Phase I clinical trials. It also has various small molecule drug candidates, which are in the discovery, research, and preclinical stages for the treatment of Dementia with Lewy Bodies, Alzhiemer's Disease, Gaucher, GM1 Gangliosidosis, Krabbe Disease, Alpha1-Antitrypsun deficiency, and solid tumors. Gain Therapeutics, Inc. was founded in 2017 and is headquartered in Bethesda, Maryland.
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