Critical Survey: Outlook Therapeutics (NASDAQ:OTLK) vs. Cabaletta Bio (NASDAQ:CABA)

Outlook Therapeutics (NASDAQ:OTLK) and Cabaletta Bio (NASDAQ:CABA) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.

Earnings and Valuation

This table compares Outlook Therapeutics and Cabaletta Bio”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Outlook Therapeutics	N/A	N/A	-$75.37 million	($7.42)	-0.20
Cabaletta Bio	N/A	N/A	-$67.68 million	($2.15)	-0.81

Cabaletta Bio is trading at a lower price-to-earnings ratio than Outlook Therapeutics, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Outlook Therapeutics has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Cabaletta Bio has a beta of 2.58, meaning that its stock price is 158% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Outlook Therapeutics and Cabaletta Bio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Outlook Therapeutics	0	1	4	0	2.80
Cabaletta Bio	0	1	6	1	3.00

Outlook Therapeutics currently has a consensus price target of $10.20, indicating a potential upside of 575.50%. Cabaletta Bio has a consensus price target of $22.71, indicating a potential upside of 1,205.42%. Given Cabaletta Bio’s stronger consensus rating and higher possible upside, analysts plainly believe Cabaletta Bio is more favorable than Outlook Therapeutics.

Institutional and Insider Ownership

11.2% of Outlook Therapeutics shares are held by institutional investors. 4.8% of Outlook Therapeutics shares are held by insiders. Comparatively, 9.9% of Cabaletta Bio shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Outlook Therapeutics and Cabaletta Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Outlook Therapeutics	N/A	N/A	-225.12%
Cabaletta Bio	N/A	-50.10%	-45.49%

Summary

Cabaletta Bio beats Outlook Therapeutics on 9 of the 12 factors compared between the two stocks.

About Outlook Therapeutics

Outlook Therapeutics, Inc., operates as a clinical-stage biopharmaceutical company, focuses on developing and commercializing monoclonal antibodies for various ophthalmic indications. Its lead product candidate is ONS-5010, an ophthalmic formulation of bevacizumab product candidate that is in Phase-III clinical trial for the treatment of wet age-related macular degeneration and other retina diseases. Outlook Therapeutics, Inc. has collaboration and license agreements with BioLexis Pte. Ltd. and Zhejiang Huahai Pharmaceutical Co., Ltd. The company was formerly known as Oncobiologics, Inc. and changed its name to Outlook Therapeutics, Inc. in November 2018. Outlook Therapeutics, Inc. was incorporated in 2010 and is based in Iselin, New Jersey.

About Cabaletta Bio

Cabaletta Bio, Inc., a clinical-stage biotechnology company, focuses on the discovery and development of engineered T cell therapies for patients with B cell-mediated autoimmune diseases. The company's lead product candidate is CABA-201, a fully human anti-CD19 binder for the treatment of Phase 1/2 clinical trials in dermatomyositis, anti-synthetase syndrome, immune-mediated necrotizing myopathy, lupus nephritis, non-renal systemic lupus erythematosus, systemic sclerosis, and generalized myasthenia gravis. It also develops DSG3-CAART, which is in Phase I/II clinical trial for the treatment of mucosal pemphigus vulgaris; and MuSK-CAART, an investigational cell therapy that is in Phase I/II clinical trial for treating patients with anti- muscle-specific kinase antibody positive myasthenia gravis. It has a collaboration with the University of Pennsylvania and the Children's Hospital of Philadelphia; Nanjing IASO Biotherapeutics Co., Ltd; Oxford Biomedica; and WuXi Advanced Therapies, Inc. The company was formerly known as Tycho Therapeutics, Inc. and changed its name to Cabaletta Bio, Inc. in August 2018. Cabaletta Bio, Inc. was incorporated in 2017 and is headquartered in Philadelphia, Pennsylvania.