Milestone Pharmaceuticals (NASDAQ:MIST – Get Free Report) and Cabaletta Bio (NASDAQ:CABA – 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 risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.
Risk and Volatility
Milestone Pharmaceuticals has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, Cabaletta Bio has a beta of 3.17, meaning that its stock price is 217% more volatile than the S&P 500.
Valuation and Earnings
This table compares Milestone Pharmaceuticals and Cabaletta Bio”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Milestone Pharmaceuticals | $1.00 million | 228.26 | -$41.52 million | ($0.82) | -3.27 |
| Cabaletta Bio | N/A | N/A | -$115.86 million | ($2.53) | -1.01 |
Milestone Pharmaceuticals has higher revenue and earnings than Cabaletta Bio. Milestone Pharmaceuticals is trading at a lower price-to-earnings ratio than Cabaletta Bio, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
86.2% of Milestone Pharmaceuticals shares are held by institutional investors. 19.5% of Milestone Pharmaceuticals shares are held by insiders. Comparatively, 11.3% of Cabaletta Bio 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.
Profitability
This table compares Milestone Pharmaceuticals and Cabaletta Bio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Milestone Pharmaceuticals | N/A | -2,374.19% | -85.19% |
| Cabaletta Bio | N/A | -107.14% | -82.95% |
Analyst Recommendations
This is a summary of current ratings for Milestone Pharmaceuticals and Cabaletta Bio, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Milestone Pharmaceuticals | 1 | 3 | 2 | 0 | 2.17 |
| Cabaletta Bio | 1 | 1 | 7 | 0 | 2.67 |
Milestone Pharmaceuticals presently has a consensus target price of $4.50, suggesting a potential upside of 67.91%. Cabaletta Bio has a consensus target price of $15.11, suggesting a potential upside of 492.59%. Given Cabaletta Bio’s stronger consensus rating and higher possible upside, analysts plainly believe Cabaletta Bio is more favorable than Milestone Pharmaceuticals.
Summary
Cabaletta Bio beats Milestone Pharmaceuticals on 7 of the 12 factors compared between the two stocks.
About Milestone Pharmaceuticals
Milestone Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of cardiovascular medicines. The company's lead product candidate is etripamil, a novel and potent calcium channel blocker, which is in Phase III clinical trial for the treatment of paroxysmal supraventricular tachycardia in the United States and Canada; and Phase II clinical trial for the treatment of atrial fibrillation and rapid ventricular rate. It has a license and collaboration agreement with Ji Xing Pharmaceuticals to develop and commercialize etripamil prophylactic and therapeutic uses in humans, as well as with the Montreal Heart Institute, the WCN network, and other research centers. The company was incorporated in 2003 and is headquartered in Montréal, Canada.
About Cabaletta Bio
Cabaletta Bio, Inc., a clinical-stage biotechnology company, focuses on the discovery and development of engineered T cell therapies for patients with B cell-mediated autoimmune diseases. The company's lead product candidate is CABA-201, a fully human anti-CD19 binder for the treatment of Phase 1/2 clinical trials in dermatomyositis, anti-synthetase syndrome, immune-mediated necrotizing myopathy, lupus nephritis, non-renal systemic lupus erythematosus, systemic sclerosis, and generalized myasthenia gravis. It also develops DSG3-CAART, which is in Phase I/II clinical trial for the treatment of mucosal pemphigus vulgaris; and MuSK-CAART, an investigational cell therapy that is in Phase I/II clinical trial for treating patients with anti- muscle-specific kinase antibody positive myasthenia gravis. It has a collaboration with the University of Pennsylvania and the Children's Hospital of Philadelphia; Nanjing IASO Biotherapeutics Co., Ltd; Oxford Biomedica; and WuXi Advanced Therapies, Inc. The company was formerly known as Tycho Therapeutics, Inc. and changed its name to Cabaletta Bio, Inc. in August 2018. Cabaletta Bio, Inc. was incorporated in 2017 and is headquartered in Philadelphia, Pennsylvania.
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