Analyzing Black Diamond Therapeutics (NASDAQ:BDTX) & Cardiol Therapeutics (NASDAQ:CRDL)

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

Analyst Ratings

This is a summary of current ratings and target prices for Cardiol Therapeutics and Black Diamond Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cardiol Therapeutics	0	0	4	1	3.20
Black Diamond Therapeutics	0	0	4	0	3.00

Cardiol Therapeutics currently has a consensus price target of $8.75, indicating a potential upside of 583.59%. Black Diamond Therapeutics has a consensus price target of $15.50, indicating a potential upside of 703.11%. Given Black Diamond Therapeutics’ higher probable upside, analysts plainly believe Black Diamond Therapeutics is more favorable than Cardiol Therapeutics.

Institutional and Insider Ownership

12.5% of Cardiol Therapeutics shares are held by institutional investors. Comparatively, 95.5% of Black Diamond Therapeutics shares are held by institutional investors. 5.3% of Cardiol Therapeutics shares are held by insiders. Comparatively, 8.9% of Black Diamond Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Cardiol Therapeutics and Black Diamond Therapeutics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cardiol Therapeutics	$60,000.00	1,743.00	-$20.84 million	($0.39)	-3.28
Black Diamond Therapeutics	N/A	N/A	-$82.44 million	($1.33)	-1.45

Cardiol Therapeutics has higher revenue and earnings than Black Diamond Therapeutics. Cardiol Therapeutics is trading at a lower price-to-earnings ratio than Black Diamond Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cardiol Therapeutics and Black Diamond Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cardiol Therapeutics	N/A	-194.40%	-129.07%
Black Diamond Therapeutics	N/A	-68.08%	-49.65%

Risk and Volatility

Cardiol Therapeutics has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Black Diamond Therapeutics has a beta of 2.49, meaning that its share price is 149% more volatile than the S&P 500.

Summary

Black Diamond Therapeutics beats Cardiol Therapeutics on 7 of the 12 factors compared between the two stocks.

About Cardiol Therapeutics

Cardiol Therapeutics Inc., a clinical-stage life sciences company, focuses on the research and development of anti-fibrotic and anti-inflammatory therapies for the treatment of heart diseases. Its lead product CardiolRx, which is in Phase II multi-national, randomized, double-blind, and placebo-controlled study to evaluate the efficacy and safety of CardiolRx in acute myocarditis, as well as for the treatment of recurrent pericarditis. The company is also developing CRD-38 injection for subcutaneous administration that is in preclinical development for the treatment of heart failure. It has a license agreement with Meros. The company was incorporated in 2017 and is headquartered in Oakville, Canada.

About Black Diamond Therapeutics

Black Diamond Therapeutics, Inc., a clinical-stage oncology medicine company, focuses on the discovery and development of MasterKey therapies for patients with genetically defined tumors. The company's lead product candidate is BDTX-1535, a brain-penetrant epidermal growth factor receptor MasterKey inhibitor, which is in phase 2 clinical trial for the treatment of epidermal growth factor receptor mutant non-small cell lung cancer, as well as phase 1 clinical trial to treat glioblastoma. It is also developing BDTX-4933, a brain-penetrant RAF MasterKey inhibitor targeting KRAS, NRAS, and BRAF alterations in solid tumors that is in phase 1 clinical trial. In addition, the company is developing BDTX-4876, a MasterKey inhibitor of oncogenic FGFR2/3 mutations with selectivity versus FGFR1/4, which is in preclinical stage. The company was formerly known as ASET Therapeutics, Inc. and changed its name to Black Diamond Therapeutics, Inc. in January 2018. Black Diamond Therapeutics, Inc. was incorporated in 2014 and is headquartered in Cambridge, Massachusetts.