Vitae Pharmaceuticals (NASDAQ: VTAE) and Onconova Therapeutics (NASDAQ:ONTX) are both healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Valuation and Earnings

This table compares Vitae Pharmaceuticals and Onconova Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Vitae Pharmaceuticals N/A N/A N/A ($1.93) -10.88
Onconova Therapeutics $2.36 million 6.68 -$22.15 million ($2.35) -0.68

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

Risk & Volatility

Vitae Pharmaceuticals has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Onconova Therapeutics has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500.

Institutional & Insider Ownership

72.6% of Vitae Pharmaceuticals shares are owned by institutional investors. Comparatively, 26.8% of Onconova Therapeutics shares are owned by institutional investors. 14.8% of Vitae Pharmaceuticals shares are owned by insiders. Comparatively, 27.3% of Onconova Therapeutics shares are owned by 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Vitae Pharmaceuticals -318,350.20% -53.70% -49.85%
Onconova Therapeutics -762.13% -558.97% -85.62%

Analyst Ratings

This is a summary of current ratings and recommmendations for Vitae Pharmaceuticals and Onconova Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vitae Pharmaceuticals 0 1 0 0 2.00
Onconova Therapeutics 0 0 3 0 3.00

Onconova Therapeutics has a consensus target price of $8.00, suggesting a potential upside of 400.00%. Given Onconova Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Onconova Therapeutics is more favorable than Vitae Pharmaceuticals.

Summary

Onconova Therapeutics beats Vitae Pharmaceuticals on 6 of the 11 factors compared between the two stocks.

Vitae Pharmaceuticals Company Profile

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.

Onconova Therapeutics Company Profile

Onconova Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company operates through the identification and development of oncology therapeutics segment. It is focused on discovering and developing small molecule drug candidates to treat cancer. The Company has created a targeted anti-cancer agents designed to work against specific cellular pathways that are important to cancer cells. It has over three clinical-stage product candidates and various preclinical programs that target kinases, cellular metabolism or cell division in preclinical development. The Company’s lead product candidate, rigosertib, is being tested in both intravenous (IV) and oral formulations as a single agent, and the oral formulation is also being tested in combination with azacitidine, in clinical trials for patients with myelodysplastic syndromes (MDS), and related cancers. Its other product candidates include Briciclib and Recilisib.

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