eFFECTOR Therapeutics (NASDAQ:EFTR – Get Free Report) and COMPASS Pathways (NASDAQ:CMPS – 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 analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.
Profitability
This table compares eFFECTOR Therapeutics and COMPASS Pathways’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
eFFECTOR Therapeutics | N/A | N/A | -160.00% |
COMPASS Pathways | N/A | -58.72% | -49.46% |
Institutional & Insider Ownership
57.7% of eFFECTOR Therapeutics shares are held by institutional investors. Comparatively, 46.2% of COMPASS Pathways shares are held by institutional investors. 8.4% of eFFECTOR Therapeutics shares are held by insiders. Comparatively, 4.3% of COMPASS Pathways shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for eFFECTOR Therapeutics and COMPASS Pathways, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
eFFECTOR Therapeutics | 0 | 0 | 2 | 0 | 3.00 |
COMPASS Pathways | 0 | 0 | 5 | 0 | 3.00 |
eFFECTOR Therapeutics currently has a consensus price target of $24.00, suggesting a potential upside of 1,248.31%. COMPASS Pathways has a consensus price target of $47.40, suggesting a potential upside of 466.99%. Given eFFECTOR Therapeutics’ higher possible upside, analysts clearly believe eFFECTOR Therapeutics is more favorable than COMPASS Pathways.
Earnings and Valuation
This table compares eFFECTOR Therapeutics and COMPASS Pathways’ gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
eFFECTOR Therapeutics | $3.55 million | 1.85 | -$35.81 million | ($16.92) | -0.11 |
COMPASS Pathways | N/A | N/A | -$118.46 million | ($2.39) | -3.50 |
eFFECTOR Therapeutics has higher revenue and earnings than COMPASS Pathways. COMPASS Pathways is trading at a lower price-to-earnings ratio than eFFECTOR Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
eFFECTOR Therapeutics beats COMPASS Pathways on 7 of the 11 factors compared between the two stocks.
About eFFECTOR Therapeutics
eFFECTOR Therapeutics, Inc., a biopharmaceutical company, engages in the development of selective translation regulator inhibitors (STRIs) for the treatment of cancer. The company's lead product candidates comprise Tomivosertib, an oral small-molecule inhibitor of MNK that is in phase 2b clinical trial for the treatment of patients with metastatic non-small cell lung cancer; and Zotatifin, a small molecule inhibitor of eukaryotic initiation factor 4A (eIF4E), which is in Phase 1/2 clinical trial to treat patients with solid tumors, as well as completed Phase 2a open-label expansion cohort in combination with fulvestrant and abemaciclib to treat patients with ER+ breast cancer. The company has a research collaboration and license agreement with Pfizer Inc. to research and develop small molecules that target eIF4E. eFFECTOR Therapeutics, Inc. was incorporated in 2012 and is headquartered in Solana Beach, California.
About COMPASS Pathways
COMPASS Pathways plc operates as a mental health care company in the United Kingdom and the United States. It develops COMP360, a psilocybin therapy that is in Phase III clinical trials for the treatment of treatment-resistant depression; and is in Phase II clinical trials for the treatment of post-traumatic stress disorder and anorexia nervosa. The company was formerly known as COMPASS Rx Limited and changed its name to COMPASS Pathways plc in August 2020. COMPASS Pathways plc was incorporated in 2020 and is headquartered in London, the United Kingdom.
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