Head-To-Head Comparison: Aravive (NASDAQ:ARAV) & Phathom Pharmaceuticals (NASDAQ:PHAT)

Phathom Pharmaceuticals (NASDAQ:PHAT) and Aravive (NASDAQ:ARAV) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Phathom Pharmaceuticals and Aravive’s 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%
Aravive	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and price targets for Phathom Pharmaceuticals and Aravive, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phathom Pharmaceuticals	1	1	4	1	2.71
Aravive	0	0	0	0	0.00

Phathom Pharmaceuticals presently has a consensus target price of $20.67, suggesting a potential upside of 41.94%. Given Phathom Pharmaceuticals’ stronger consensus rating and higher possible upside, equities analysts clearly believe Phathom Pharmaceuticals is more favorable than Aravive.

Earnings & Valuation

This table compares Phathom Pharmaceuticals and Aravive”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phathom Pharmaceuticals	$55.25 million	18.75	-$334.33 million	($3.82)	-3.81
Aravive	$9.14 million	N/A	-$76.32 million	($0.90)	-0.04

Aravive has lower revenue, but higher earnings than Phathom Pharmaceuticals. Phathom Pharmaceuticals is trading at a lower price-to-earnings ratio than Aravive, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

99.0% of Phathom Pharmaceuticals shares are held by institutional investors. Comparatively, 35.8% of Aravive shares are held by institutional investors. 23.0% of Phathom Pharmaceuticals shares are held by company insiders. Comparatively, 60.4% of Aravive shares are held by company 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.

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 Aravive

Aravive, Inc., a clinical-stage biopharmaceutical company, develops transformative treatments for life-threatening diseases, including cancer and fibrosis in the United States. Its lead product candidate is batiraxcept, an ultrahigh-affinity, decoy protein that targets the GAS6-AXL signaling pathway, which is in Phase III clinical trial for the treatment of platinum- resistant recurrent ovarian cancer; and in Phase Ib/II clinical trial for the treatment of clear cell renal cell carcinoma and pancreatic adenocarcinoma. The company also develops AVB-S6, a soluble Fc-fusion protein to block the activation of the GAS6-AXL signaling pathway. It has a license and collaboration agreement with WuXi Biologics (Hong Kong) Limited to identify and develop novel high-affinity bispecific antibodies targeting cancer and fibrosis; and license agreement with 3D Medicines Inc. to develop products that contain batiraxcept as the sole drug substance for the treatment of human oncological diseases in mainland China, Taiwan, Hong Kong, and Macau. The company was formerly known as Versartis, Inc. and changed its name to Aravive, Inc. in October 2018. Aravive, Inc. was incorporated in 2008 and is headquartered in Houston, Texas.