Aeglea BioTherapeutics (NASDAQ: AGLE) and Calithera Biosciences (NASDAQ:CALA) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Insider & Institutional Ownership

48.1% of Aeglea BioTherapeutics shares are held by institutional investors. Comparatively, 71.9% of Calithera Biosciences shares are held by institutional investors. 27.0% of Aeglea BioTherapeutics shares are held by insiders. Comparatively, 16.3% of Calithera Biosciences shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Aeglea BioTherapeutics has a beta of 3.09, suggesting that its stock price is 209% more volatile than the S&P 500. Comparatively, Calithera Biosciences has a beta of 3.31, suggesting that its stock price is 231% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Aeglea BioTherapeutics and Calithera Biosciences, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aeglea BioTherapeutics 0 0 1 0 3.00
Calithera Biosciences 0 1 4 0 2.80

Aeglea BioTherapeutics presently has a consensus target price of $19.00, suggesting a potential upside of 290.95%. Calithera Biosciences has a consensus target price of $14.40, suggesting a potential downside of 13.51%. Given Aeglea BioTherapeutics’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Aeglea BioTherapeutics is more favorable than Calithera Biosciences.

Valuation and Earnings

This table compares Aeglea BioTherapeutics and Calithera Biosciences’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Aeglea BioTherapeutics $4.86 million 16.45 -$24.72 million ($1.82) -2.67
Calithera Biosciences $11.45 million 51.59 -$29.12 million ($1.26) -13.21

Aeglea BioTherapeutics has higher revenue, but lower earnings than Calithera Biosciences. Calithera Biosciences is trading at a lower price-to-earnings ratio than Aeglea BioTherapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Aeglea BioTherapeutics and Calithera Biosciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aeglea BioTherapeutics -506.49% -39.21% -36.78%
Calithera Biosciences N/A -26.72% -20.91%

Summary

Calithera Biosciences beats Aeglea BioTherapeutics on 9 of the 13 factors compared between the two stocks.

Aeglea BioTherapeutics Company Profile

Aeglea BioTherapeutics, Inc. is a biotechnology company, which is engaged in the development of enzyme-based therapeutics in the field of amino acid metabolism to treat inborn errors of metabolism (IEM) and cancer. The Company’s product pipeline includes AEB1102, AEB3103, AEB2109 and AEB4104. Its lead product candidate, AEB1102, is engineered to degrade the amino acid arginine and is being developed to treat over two extremes of arginine metabolism, including arginine excess in patients with Arginase I deficiency, an IEM, as well as some cancers, which have shown to have a metabolic dependence on arginine. AEB1102 reduces blood arginine levels in nonclinical and oncology clinical studies. AEB3103 targets the degradation of the amino acid cysteine/cystine. AEB2109 targets the degradation of the amino acid methionine. AEB4104 targets the reduction of elevated levels of the amino acid homocystine associated with the IEM classical homocystinuria.

Calithera Biosciences Company Profile

Calithera Biosciences, Inc. is a clinical-stage pharmaceutical company. The Company focuses on discovering and developing small molecule drugs directed against tumor and immune cell targets that control key metabolic pathways in the tumor microenvironment. It is engaged in developing agents that take advantage of the metabolic requirements of tumor cells and cancer-fighting immune cells, such as cytotoxic T-cells. The Company’s lead product candidate, CB-839, is a critical enzyme in tumor cells. Its other product candidate, CB-1158, is being developed for hematology and oncology indications. CB-1158 is a potent and selective orally bioavailable inhibitor of the enzyme arginase. CB-839 is a selective, reversible and orally bioavailable inhibitor of human glutaminase. CB-1158 has single agent anti-tumor activity in syngeneic mouse tumor models that has been demonstrated to act through an immune mechanism. CB-1158 is being tested in a Phase I clinical trial in patients with solid tumors.

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