Critical Review: Xenon Pharmaceuticals (NASDAQ:XENE) vs. BioXcel Therapeutics (NASDAQ:BTAI)

BioXcel Therapeutics (NASDAQ:BTAIGet Free Report) and Xenon Pharmaceuticals (NASDAQ:XENEGet Free Report) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
BioXcel Therapeutics -4,487.39% N/A -133.99%
Xenon Pharmaceuticals N/A -24.16% -23.15%

Risk & Volatility

BioXcel Therapeutics has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Xenon Pharmaceuticals has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for BioXcel Therapeutics and Xenon Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BioXcel Therapeutics 0 2 3 0 2.60
Xenon Pharmaceuticals 0 0 9 1 3.10

BioXcel Therapeutics presently has a consensus price target of $5.50, indicating a potential upside of 772.46%. Xenon Pharmaceuticals has a consensus price target of $58.78, indicating a potential upside of 46.61%. Given BioXcel Therapeutics’ higher possible upside, equities analysts plainly believe BioXcel Therapeutics is more favorable than Xenon Pharmaceuticals.

Valuation and Earnings

This table compares BioXcel Therapeutics and Xenon Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BioXcel Therapeutics $2.40 million 9.85 -$179.05 million ($5.18) -0.12
Xenon Pharmaceuticals $9.43 million 320.84 -$182.39 million ($2.71) -14.79

BioXcel Therapeutics has higher earnings, but lower revenue than Xenon Pharmaceuticals. Xenon Pharmaceuticals is trading at a lower price-to-earnings ratio than BioXcel Therapeutics, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

30.7% of BioXcel Therapeutics shares are held by institutional investors. Comparatively, 95.4% of Xenon Pharmaceuticals shares are held by institutional investors. 35.8% of BioXcel Therapeutics shares are held by insiders. Comparatively, 5.5% of Xenon Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Xenon Pharmaceuticals beats BioXcel Therapeutics on 10 of the 15 factors compared between the two stocks.

About BioXcel Therapeutics

(Get Free Report)

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.

About Xenon Pharmaceuticals

(Get Free Report)

Xenon Pharmaceuticals Inc., a clinical-stage biopharmaceutical company, engages in developing therapeutics to treat patients with neurological disorders in Canada. Its clinical development pipeline includes XEN496, a Kv7 potassium channel opener that is Phase III clinical trials for the treatment of KCNQ2 developmental and epileptic encephalopathy; and XEN1101, a Kv7 potassium channel opener, which is in Phase II clinical trial for the treatment of epilepsy and other neurological disorders. The company's product candidates also comprise NBI-921352, a selective Nav1.6 sodium channel inhibitor that is in Phase II clinical trials for the treatment of SCN8A developmental and epileptic encephalopathy, and other indications, including adult focal epilepsy. It has a license and collaboration agreement with the Neurocrine Biosciences, Inc. to develop treatments for epilepsy. The company was incorporated in 1996 and is headquartered in Burnaby, Canada.

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