Analyzing Cabaletta Bio (NASDAQ:CABA) and Opthea (NASDAQ:OPT)

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

Valuation and Earnings

This table compares Opthea and Cabaletta Bio’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Opthea	$110,000.00	1,189.24	-$142.52 million	N/A	N/A
Cabaletta Bio	N/A	N/A	-$67.68 million	($1.71)	-4.20

Cabaletta Bio has lower revenue, but higher earnings than Opthea.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Opthea	N/A	N/A	N/A
Cabaletta Bio	N/A	-38.77%	-36.09%

Insider and Institutional Ownership

56.0% of Opthea shares are held by institutional investors. 3.2% of Opthea shares are held by company insiders. Comparatively, 9.9% of Cabaletta Bio shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Opthea has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Cabaletta Bio has a beta of 2.42, indicating that its stock price is 142% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Opthea and Cabaletta Bio, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Opthea	0	0	2	0	3.00
Cabaletta Bio	0	0	9	0	3.00

Opthea presently has a consensus price target of $14.00, indicating a potential upside of 525.00%. Cabaletta Bio has a consensus price target of $34.44, indicating a potential upside of 379.06%. Given Opthea’s higher probable upside, analysts plainly believe Opthea is more favorable than Cabaletta Bio.

Summary

Opthea beats Cabaletta Bio on 5 of the 9 factors compared between the two stocks.

About Opthea

Opthea Limited, a clinical stage biopharmaceutical company, engages in the development and commercialization of therapies primarily for eye disease in Australia. The company's development activities are based on the intellectual property portfolio covering Vascular Endothelial Growth Factors (VEGF) VEGF-C, VEGF-D, and VEGF Receptor-3 for the treatment of diseases associated with blood and lymphatic vessel growth, as well as vascular leakage. Its lead product candidate is Sozinibercept (OPT 302), a soluble form of vascular endothelial growth factor receptor-3 VEGFR-3, currently under Phase 3 clinical development as a novel therapy for wet age-related macular degeneration and diabetic macular edema. The company was formerly known as Circadian Technologies Limited and changed its name to Opthea Limited in December 2015. Opthea Limited was incorporated in 1984 and is based in South Yarra, Australia.

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.