Chiasma (NASDAQ: CHMA) and Vitae Pharmaceuticals (NASDAQ:VTAE) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.

Risk & Volatility

Chiasma has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, Vitae Pharmaceuticals has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Earnings & Valuation

This table compares Chiasma and Vitae Pharmaceuticals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chiasma N/A N/A -$29.42 million ($1.27) -1.73
Vitae Pharmaceuticals N/A N/A N/A ($1.93) -10.88

Vitae Pharmaceuticals is trading at a lower price-to-earnings ratio than Chiasma, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

52.2% of Chiasma shares are held by institutional investors. Comparatively, 72.6% of Vitae Pharmaceuticals shares are held by institutional investors. 3.2% of Chiasma shares are held by insiders. Comparatively, 14.8% of Vitae Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Chiasma and Vitae Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chiasma 1 0 0 0 1.00
Vitae Pharmaceuticals 0 5 0 0 2.00

Vitae Pharmaceuticals has a consensus target price of $21.67, indicating a potential upside of 3.17%. Given Vitae Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Vitae Pharmaceuticals is more favorable than Chiasma.

Profitability

This table compares Chiasma and Vitae Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chiasma N/A -35.96% -31.97%
Vitae Pharmaceuticals -318,350.20% -53.70% -49.85%

Summary

Chiasma beats Vitae Pharmaceuticals on 5 of the 9 factors compared between the two stocks.

About Chiasma

Chiasma, Inc. is a biopharmaceutical company. The Company is engaged in developing and commercializing oral forms of therapies that are available only by injection. Using its Transient Permeability Enhancer (TPE) technology platform, the Company is developing oral therapies. The Company has completed a Phase III clinical trial of its TPE platform-based product candidate, oral octreotide capsules (trade named as MYCAPSSA) for the treatment of acromegaly, a condition that results in the body’s production of excess growth hormone. Octreotide is an analog of somatostatin, a natural inhibitor of growth hormone secretion. The Company is developing octreotide capsules as a liquid-filled solid gelatin capsule formulation, which is intended to be taken over twice a day. The Company’s TPE technology enhances the absorption through the intestinal wall of drugs. The Company also focuses on developing CH2 for Orphan indication.

About Vitae Pharmaceuticals

Vitae Pharmaceuticals, Inc. is a biotechnology company. The Company is focused on discovering and developing small molecule drugs for diseases. It is engaged in developing a portfolio of product candidates through Contour, its structure-based drug discovery platform. The Company’s product candidates include VTP- 43742 for the treatment of psoriasis, as well as multiple other autoimmune disorders. The Company completed approximately two Phase I studies with VTP-43742. Its VTP-38543, a second product candidate is in a Phase IIa proof-of-concept clinical trial for the treatment of atopic dermatitis. Its VTP-36951 is for the treatment and prevention of Alzheimer’s disease, or Alzheimer’s. VTP-43742, the Company’s wholly owned clinical candidate in an on-going Phase IIa proof-of-concept trial in psoriasis, is an orally active small molecule inhibitor of Retinoic acid-receptor (RAR)-Related Orphan Receptor gamma-t (RORgt) activity for the treatment of various autoimmune disorders.

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