RXi Pharmaceuticals (NASDAQ:RXII) and Aerpio Pharmaceuticals (OTCMKTS:ARPO) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Earnings and Valuation

This table compares RXi Pharmaceuticals and Aerpio Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RXi Pharmaceuticals $10,000.00 0.00 -$12.45 million ($4.20) N/A
Aerpio Pharmaceuticals N/A N/A N/A N/A N/A

Aerpio Pharmaceuticals has lower revenue, but higher earnings than RXi Pharmaceuticals.

Profitability

This table compares RXi Pharmaceuticals and Aerpio Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RXi Pharmaceuticals -4,990.20% -412.15% -179.54%
Aerpio Pharmaceuticals N/A N/A N/A

Insider and Institutional Ownership

9.6% of RXi Pharmaceuticals shares are owned by institutional investors. Comparatively, 0.4% of Aerpio Pharmaceuticals shares are owned by institutional investors. 1.0% of RXi Pharmaceuticals shares are owned by insiders. Comparatively, 38.6% of Aerpio Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for RXi Pharmaceuticals and Aerpio Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RXi Pharmaceuticals 0 0 1 0 3.00
Aerpio Pharmaceuticals 0 3 2 0 2.40

RXi Pharmaceuticals presently has a consensus target price of $3.00, suggesting a potential upside of ∞. Aerpio Pharmaceuticals has a consensus target price of $9.25, suggesting a potential upside of 780.95%. Given RXi Pharmaceuticals’ stronger consensus rating and higher probable upside, equities analysts clearly believe RXi Pharmaceuticals is more favorable than Aerpio Pharmaceuticals.

Summary

Aerpio Pharmaceuticals beats RXi Pharmaceuticals on 5 of the 9 factors compared between the two stocks.

About RXi Pharmaceuticals

RXi Pharmaceuticals Corporation, a biotechnology company, focuses on discovering and developing immuno-oncology therapeutics to treat cancer. The company's lead product candidate is RXI-109, an sd-rxRNA that reduces the expression of connective tissue growth factor, a critical regulator of several biological pathways involved in fibrosis, including scar formation in the skin and eye. The company also develops Samcyprone, a topical formulation of the small molecule diphenylcyclopropenone that is in a Phase IIa clinical trial for the clearance of common warts; RXI-231, an sd-rxRNA compound targeting tyrosinase, as a cosmetic ingredient that may enhance the appearance of uneven skin tone and pigmentation; and RXI-185, an sd-rxRNA compound targeting collagenase, as a cosmetic ingredient that may improve the appearance of wrinkles or skin laxity. In addition, it develops RXI-109, a Phase I/II clinical trial that reduces the progression of retinal scarring. RXi Pharmaceuticals Corporation has collaborations with the Center for Cancer Immune Therapy; Gustave Roussy; Medigene AG; PCI Biotech; and Karolinska Institutet. The company was incorporated in 2011 and is headquartered in Marlborough, Massachusetts.

About Aerpio Pharmaceuticals

Aerpio Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes proprietary therapeutics for treating ocular diseases. The company's lead product candidate is AKB-9778, a small molecule activator of the tie-2 pathway, which completed Phase 2a clinical trials for the treatment of diabetic macular edema. It also develops ARP-1536, a humanized monoclonal antibody that is in late stage preclinical development for the treatment of wet age-related macular degeneration; and AKB-4924, a selective stabilizer of hypoxia-inducible factor-1 alpha, which has completed a Phase 1a clinical trial for the treatment of inflammatory bowel disease. The company is headquartered in Cincinnati, Ohio.

Receive News & Ratings for RXi Pharmaceuticals Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for RXi Pharmaceuticals and related companies with MarketBeat.com's FREE daily email newsletter.