Affymax (OTCMKTS: AFFY) and Mirati Therapeutics (NASDAQ:MRTX) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Insider and Institutional Ownership

60.2% of Mirati Therapeutics shares are owned by institutional investors. 1.6% of Affymax shares are owned by insiders. Comparatively, 5.1% of Mirati Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Affymax and Mirati Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Affymax 0 0 0 0 N/A
Mirati Therapeutics 0 3 3 0 2.50

Mirati Therapeutics has a consensus price target of $10.80, indicating a potential upside of 0.00%. Given Mirati Therapeutics’ higher probable upside, analysts clearly believe Mirati Therapeutics is more favorable than Affymax.

Earnings & Valuation

This table compares Affymax and Mirati Therapeutics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Affymax $41,999.00 42.62 -$47.65 million N/A N/A
Mirati Therapeutics N/A N/A -$73.47 million ($3.43) -3.15

Affymax has higher revenue and earnings than Mirati Therapeutics.

Profitability

This table compares Affymax and Mirati Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Affymax N/A N/A N/A
Mirati Therapeutics N/A -101.85% -86.50%

Volatility and Risk

Affymax has a beta of 1.97, indicating that its stock price is 97% more volatile than the S&P 500. Comparatively, Mirati Therapeutics has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500.

Summary

Affymax beats Mirati Therapeutics on 5 of the 9 factors compared between the two stocks.

About Affymax

Affymax, Inc. is a biopharmaceutical company. The Company’s product OMONTYS (peginesatide) is for the treatment of anemia due to chronic kidney disease in adult patients on dialysis. OMONTYS is a synthetic, peptide-based erythropoiesis stimulating agent (ESA), designed to stimulate production of red blood cells. The Company has a collaboration to develop and commercialize peginesatide with Takeda Pharmaceutical Company Limited. In March 2012, the Food and Drug Administration (FDA) approved the Company’s product, OMONTYS.

About Mirati Therapeutics

Mirati Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops a pipeline of oncology products. The company’s clinical stage product candidates include glesatinib, an orally-bioavailable, potent, small molecule kinase inhibitor that is in Phase II clinical trials for the treatment of non-small cell lung cancer (NSCLC) patients with genetic alterations of MET; and in Phase Ib clinical trials in patients with genetic alterations of MET and Axl in NSCLC and other solid tumors. Its clinical stage product candidates also comprise sitravatinib, an orally-bioavailable, potent, small molecule spectrum-selective kinase inhibitor, which is in Phase II clinical trials for the treatment of solid tumors, such as NSCLC and metastatic Renal Cell Carcinoma, as well as in Phase Ib clinical trials to treat NSCLC patients with RET, CHR4q12, CBL, and AXL genetic alterations; and mocetinostat, an orally administered spectrum-selective Class 1 histone deacetylase inhibitor, which is in Phase Ib/II clinical trials in combination with durvalumab for the treatment of patients with NSCLC. The company has a collaboration agreement with Foundation Medicine, Inc. and Guardant Health, Inc. to explore development of their platforms as companion diagnostics for glesatinib. Mirati Therapeutics, Inc. is headquartered in San Diego, California.

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