Entasis Therapeutics (NASDAQ:ETTX) and Kura Oncology (NASDAQ:KURA) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Volatility and Risk

Entasis Therapeutics has a beta of 2.79, indicating that its stock price is 179% more volatile than the S&P 500. Comparatively, Kura Oncology has a beta of 2.56, indicating that its stock price is 156% more volatile than the S&P 500.

Insider and Institutional Ownership

60.7% of Entasis Therapeutics shares are owned by institutional investors. Comparatively, 88.7% of Kura Oncology shares are owned by institutional investors. 23.1% of Entasis Therapeutics shares are owned by company insiders. Comparatively, 11.0% of Kura Oncology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Entasis Therapeutics and Kura Oncology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Entasis Therapeutics 0 0 2 0 3.00
Kura Oncology 0 0 8 0 3.00

Entasis Therapeutics currently has a consensus target price of $18.50, suggesting a potential upside of 255.77%. Kura Oncology has a consensus target price of $26.83, suggesting a potential upside of 80.70%. Given Entasis Therapeutics’ higher probable upside, research analysts plainly believe Entasis Therapeutics is more favorable than Kura Oncology.

Earnings & Valuation

This table compares Entasis Therapeutics and Kura Oncology’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Entasis Therapeutics $5.00 million 13.82 -$32.95 million ($12.31) -0.42
Kura Oncology N/A N/A -$60.45 million ($1.72) -8.63

Entasis Therapeutics has higher revenue and earnings than Kura Oncology. Kura Oncology is trading at a lower price-to-earnings ratio than Entasis Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Entasis Therapeutics and Kura Oncology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Entasis Therapeutics N/A -56.93% -50.46%
Kura Oncology N/A -31.05% -28.14%

Summary

Entasis Therapeutics beats Kura Oncology on 6 of the 11 factors compared between the two stocks.

About Entasis Therapeutics

Entasis Therapeutics Holdings, Inc. operates as a clinical stage biopharmaceutical company. It focuses on the discovery and development of novel antibacterial products. The firm develops a portfolio of innovative cures for serious drug-resistant bacterial infections. Its anti-infective discovery platform has produced a pipeline of differentiated programs, which is bacterial infections, including ETX2514SUL (targeting Acinetobacter baumannii infections), ETX0282CPDP (targeting Enterobacteriaceae infections), Non-Beta-lactam PBP inhibitor, and Zoliflodacin. Entasis Therapeutics Holdings was founded in March 2018 and is headquartered in Waltham, MA.

About Kura Oncology

Kura Oncology, Inc., a clinical-stage biopharmaceutical company, develops medicines for the treatment of cancer. Its pipeline consists of small molecule product candidates that target cancer. The company's lead product candidate is Tipifarnib, an oral farnesyl transferase inhibitor that is in Phase II clinical trials for the treatment of solid tumors, peripheral T-cell lymphomas, myelodysplastic syndromes, acute myeloid leukemia, and chronic myelomonocytic leukemia. It is also developing KO-947, a small molecule inhibitor of extracellular signal related kinase used for the treatment of patients with tumors that have dysregulated activity due to mutations or other mechanisms in the mitogen-activated protein kinase pathway; and KO-539, a small molecule inhibitor of the menin-mixed lineage leukemia protein-protein interaction. The company was founded in 2014 and is headquartered in San Diego, California.

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