Catalyst Pharmaceuticals (NASDAQ:CPRX) and Rhythm Pharmaceuticals (NASDAQ:RYTM) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.
This table compares Catalyst Pharmaceuticals and Rhythm Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Catalyst Pharmaceuticals has a beta of 2.6, meaning that its share price is 160% more volatile than the S&P 500. Comparatively, Rhythm Pharmaceuticals has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.
Institutional & Insider Ownership
60.2% of Catalyst Pharmaceuticals shares are held by institutional investors. Comparatively, 89.1% of Rhythm Pharmaceuticals shares are held by institutional investors. 10.7% of Catalyst Pharmaceuticals shares are held by insiders. Comparatively, 4.5% of Rhythm Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for Catalyst Pharmaceuticals and Rhythm Pharmaceuticals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Catalyst Pharmaceuticals currently has a consensus target price of $9.10, suggesting a potential upside of 57.99%. Rhythm Pharmaceuticals has a consensus target price of $38.67, suggesting a potential upside of 87.70%. Given Rhythm Pharmaceuticals’ higher possible upside, analysts plainly believe Rhythm Pharmaceuticals is more favorable than Catalyst Pharmaceuticals.
Valuation & Earnings
This table compares Catalyst Pharmaceuticals and Rhythm Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Catalyst Pharmaceuticals||$500,000.00||1,185.75||-$34.00 million||($0.33)||-17.45|
|Rhythm Pharmaceuticals||N/A||N/A||-$74.06 million||($2.39)||-8.62|
Catalyst Pharmaceuticals has higher revenue and earnings than Rhythm Pharmaceuticals. Catalyst Pharmaceuticals is trading at a lower price-to-earnings ratio than Rhythm Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Catalyst Pharmaceuticals beats Rhythm Pharmaceuticals on 7 of the 10 factors compared between the two stocks.
About Catalyst Pharmaceuticals
Catalyst Pharmaceuticals, Inc., a biopharmaceutical company, focuses on developing and commercializing therapies for people with rare debilitating, chronic neuromuscular, and neurological diseases. It offers Firdapse, a proprietary form of amifampridine phosphate for the treatment of patients with lambert-eaton myasthenic syndrome in the United States. The company also develops Firdapse, which is in various clinical trials for the treatment of patients with congenital myasthenic syndrome, anti-MuSK antibody positive myasthenia gravis, and spinal muscular atrophy type 3. It has license agreements with New York University, the Feinstein Institute for Medical Research, and BioMarin Pharmaceutical Inc.; and collaboration agreement with Endo Ventures Limited for the development and commercialization of generic Sabril tablets. The company was formerly known as Catalyst Pharmaceutical Partners, Inc. and changed its name to Catalyst Pharmaceuticals, Inc. in May 2015. Catalyst Pharmaceuticals, Inc. was founded in 2002 and is based in Coral Gables, Florida.
About Rhythm Pharmaceuticals
Rhythm Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics for the treatment of rare genetic disorders that result in life-threatening metabolic disorders. The company's lead product candidate is setmelanotide, a melanocortin-4 receptor agonist peptide, which is in Phase III clinical trials to treat pro-opiomelanocortin (POMC) and leptin receptor deficiency obesity, and Bardet-Biedl and Alström syndrome; and is in Phase II clinical trials for treating POMC heterozygous deficiency obesity and POMC epigenetic disorders. It is also developing RM-853, an orally available ghrelin o-acyltransferase inhibitor that is in preclinical development for Prader-Willi syndrome. The company was formerly known as Rhythm Metabolic, Inc. and changed its name to Rhythm Pharmaceuticals, Inc. in October 2015. Rhythm Pharmaceuticals, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.
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