Critical Analysis: Kazia Therapeutics (NASDAQ:KZIA) versus BioXcel Therapeutics (NASDAQ:BTAI)

Kazia Therapeutics (NASDAQ:KZIA) and BioXcel Therapeutics (NASDAQ:BTAI) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

30.9% of Kazia Therapeutics shares are owned by institutional investors. Comparatively, 30.7% of BioXcel Therapeutics shares are owned by institutional investors. 1.0% of Kazia Therapeutics shares are owned by insiders. Comparatively, 35.8% of BioXcel Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Kazia Therapeutics and BioXcel Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kazia Therapeutics	N/A	N/A	N/A
BioXcel Therapeutics	-12,974.86%	-890.63%	-144.88%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Kazia Therapeutics and BioXcel Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kazia Therapeutics	0	0	0	0	N/A
BioXcel Therapeutics	0	4	3	0	2.43

BioXcel Therapeutics has a consensus price target of $16.71, indicating a potential upside of 516.76%. Given BioXcel Therapeutics’ higher probable upside, analysts plainly believe BioXcel Therapeutics is more favorable than Kazia Therapeutics.

Risk & Volatility

Kazia Therapeutics has a beta of 2.12, meaning that its share price is 112% more volatile than the S&P 500. Comparatively, BioXcel Therapeutics has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500.

Valuation & Earnings

This table compares Kazia Therapeutics and BioXcel Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kazia Therapeutics	$20,000.00	317.81	-$13.78 million	N/A	N/A
BioXcel Therapeutics	$1.38 million	72.72	-$179.05 million	($6.15)	-0.44

Kazia Therapeutics has higher earnings, but lower revenue than BioXcel Therapeutics.

Summary

Kazia Therapeutics beats BioXcel Therapeutics on 7 of the 11 factors compared between the two stocks.

About Kazia Therapeutics

Kazia Therapeutics Limited operates as a biotechnology company, develops anti-cancer drugs. Its lead development candidate is Paxalisib, a small molecule, brain-penetrant inhibitor of the PI3K/AKT/mTOR pathway, which is developed as a potential therapy for glioblastoma, diffuse intrinsic pontine glioma/advanced solid tumors, atypical teratoid rhabdoid tumor, brain metastases, triple negative breast cancer, and primary central nervous system lymphoma. It is also developing EVT801, a small molecule targeted therapeutic vascular endothelial growth factor receptor 3 inhibitor. The company was formerly known as Novogen Limited and changed its name to Kazia Therapeutics Limited in November 2017. The company was incorporated in 1994 and is based in Sydney, Australia.

About BioXcel Therapeutics

BioXcel Therapeutics, Inc., a commercial-stage biopharmaceutical company, engages in utilizing artificial intelligence approaches to develop transformative medicines in neuroscience and immuno-oncology. The company's drug re-innovation approach leverages existing approved drugs and/or clinically validated product candidates together with big data and proprietary machine learning algorithms to identify new therapeutic indices. Its commercial product, IGALMI, a sublingual film formulation of dexmedetomidine for the acute treatment of agitation associated with schizophrenia or bipolar I or II disorder in adults. The company also continues to conduct clinical trials evaluating BXCL501 for the acute treatment of agitation in Alzheimer's disease patients, and for adjunctive treatment of patients with major depressive disorder, as well as in the community for agitation associated with bipolar disorders and schizophrenia. In addition, it is developing BXCL502 as a potential therapy for chronic agitation in dementia; and BXCL701, an investigational, orally innate immunity activator for the treatment of aggressive forms of prostate cancer, pancreatic cancer, and other solid and liquid tumors; BXCL503, a drug candidate to target apathy in dementia; and BXCL504, a drug candidate to target aggression in dementia. BioXcel Therapeutics, Inc. was incorporated in 2017 and is headquartered in New Haven, Connecticut.