Traws Pharma (NASDAQ:TRAW – Get Free Report) and Phathom Pharmaceuticals (NASDAQ:PHAT – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.
Profitability
This table compares Traws Pharma and Phathom Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Traws Pharma | N/A | -23,868.92% | -165.52% |
| Phathom Pharmaceuticals | -41.34% | N/A | -20.81% |
Institutional & Insider Ownership
8.0% of Traws Pharma shares are owned by institutional investors. Comparatively, 99.0% of Phathom Pharmaceuticals shares are owned by institutional investors. 7.6% of Traws Pharma shares are owned by insiders. Comparatively, 9.3% of Phathom Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Traws Pharma | 1 | 4 | 0 | 0 | 1.80 |
| Phathom Pharmaceuticals | 1 | 1 | 6 | 1 | 2.78 |
Traws Pharma presently has a consensus target price of $1.00, indicating a potential upside of 104.08%. Phathom Pharmaceuticals has a consensus target price of $21.25, indicating a potential upside of 184.09%. Given Phathom Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Phathom Pharmaceuticals is more favorable than Traws Pharma.
Valuation & Earnings
This table compares Traws Pharma and Phathom Pharmaceuticals”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Traws Pharma | $2.79 million | 2.70 | $9.17 million | ($1.74) | -0.28 |
| Phathom Pharmaceuticals | $175.11 million | 3.46 | -$221.25 million | ($1.28) | -5.84 |
Traws Pharma has higher earnings, but lower revenue than Phathom Pharmaceuticals. Phathom Pharmaceuticals is trading at a lower price-to-earnings ratio than Traws Pharma, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Traws Pharma has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Phathom Pharmaceuticals has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.
Summary
Phathom Pharmaceuticals beats Traws Pharma on 11 of the 15 factors compared between the two stocks.
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.
About Phathom Pharmaceuticals
Phathom Pharmaceuticals, Inc., biopharmaceutical company, focuses on developing and commercializing treatments for gastrointestinal diseases. The company has the rights in the United States, Europe, and Canada for an investigational potassium-competitive acid blocker (P-CAB) that blocks acid secretion in the stomach. It is also developing vonoprazan for the treatment of erosive gastroesophageal reflux disease; and in combination with antibiotics for the treatment of Helicobacter pylori infection. The company was incorporated in 2018 and is headquartered in Florham Park, New Jersey.
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