Phathom Pharmaceuticals (NASDAQ:PHAT – Get Free Report) and FibroBiologics (NASDAQ:FBLG – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.
Institutional and Insider Ownership
99.0% of Phathom Pharmaceuticals shares are held by institutional investors. 23.0% of Phathom Pharmaceuticals shares are held by company insiders. Comparatively, 20.0% of FibroBiologics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Phathom Pharmaceuticals and FibroBiologics”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Phathom Pharmaceuticals | $55.25 million | 19.12 | -$334.33 million | ($3.82) | -3.89 |
| FibroBiologics | N/A | N/A | -$11.16 million | ($0.48) | -0.70 |
FibroBiologics has lower revenue, but higher earnings than Phathom Pharmaceuticals. Phathom Pharmaceuticals is trading at a lower price-to-earnings ratio than FibroBiologics, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Phathom Pharmaceuticals and FibroBiologics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Phathom Pharmaceuticals | 1 | 1 | 4 | 1 | 2.71 |
| FibroBiologics | 1 | 0 | 3 | 0 | 2.50 |
Phathom Pharmaceuticals currently has a consensus target price of $20.67, indicating a potential upside of 39.17%. FibroBiologics has a consensus target price of $12.33, indicating a potential upside of 3,573.92%. Given FibroBiologics’ higher possible upside, analysts plainly believe FibroBiologics is more favorable than Phathom Pharmaceuticals.
Profitability
This table compares Phathom Pharmaceuticals and FibroBiologics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Phathom Pharmaceuticals | -186.53% | N/A | -79.41% |
| FibroBiologics | N/A | -1,219.18% | -146.48% |
Volatility & Risk
Phathom Pharmaceuticals has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, FibroBiologics has a beta of -0.72, indicating that its share price is 172% less volatile than the S&P 500.
Summary
Phathom Pharmaceuticals beats FibroBiologics on 9 of the 14 factors compared between the two stocks.
About Phathom Pharmaceuticals
Phathom Pharmaceuticals, Inc., biopharmaceutical company, focuses on developing and commercializing treatments for gastrointestinal diseases. The company has the rights in the United States, Europe, and Canada for an investigational potassium-competitive acid blocker (P-CAB) that blocks acid secretion in the stomach. It is also developing vonoprazan for the treatment of erosive gastroesophageal reflux disease; and in combination with antibiotics for the treatment of Helicobacter pylori infection. The company was incorporated in 2018 and is headquartered in Florham Park, New Jersey.
About FibroBiologics
FibroBiologics, Inc. operates as a cell therapy, regenerative medicine company. It is developing a pipeline of treatments and potential cures for chronic diseases using fibroblast cells and fibroblast-derived materials. It holds 150+ U.S. and internationally issued patents/patents pending across various clinical pathways, including disc degeneration, orthopedics, multiple sclerosis, psoriasis, wound healing, reversing organ involution, and cancer. FibroBiologics, Inc. was incorporated in 2021 and is based in Houston, Texas.
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