Iterum Therapeutics (NASDAQ:ITRM – Get Free Report) and Summit Therapeutics (NASDAQ:SMMT – Get Free Report) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.
Profitability
This table compares Iterum Therapeutics and Summit Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Iterum Therapeutics | N/A | N/A | -65.54% |
| Summit Therapeutics | N/A | -311.15% | -262.35% |
Institutional & Insider Ownership
9.2% of Iterum Therapeutics shares are held by institutional investors. Comparatively, 4.6% of Summit Therapeutics shares are held by institutional investors. 2.4% of Iterum Therapeutics shares are held by insiders. Comparatively, 84.9% of Summit Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Iterum Therapeutics | N/A | N/A | -$24.77 million | ($0.75) | -0.47 |
| Summit Therapeutics | N/A | N/A | -$221.32 million | ($1.24) | -15.05 |
Summit Therapeutics is trading at a lower price-to-earnings ratio than Iterum Therapeutics, 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 Iterum Therapeutics and Summit Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Iterum Therapeutics | 1 | 0 | 1 | 0 | 2.00 |
| Summit Therapeutics | 3 | 4 | 10 | 1 | 2.50 |
Iterum Therapeutics presently has a consensus target price of $9.00, suggesting a potential upside of 2,469.96%. Summit Therapeutics has a consensus target price of $31.77, suggesting a potential upside of 70.25%. Given Iterum Therapeutics’ higher possible upside, equities analysts plainly believe Iterum Therapeutics is more favorable than Summit Therapeutics.
Risk & Volatility
Iterum Therapeutics has a beta of 2.87, suggesting that its share price is 187% more volatile than the S&P 500. Comparatively, Summit Therapeutics has a beta of -1.51, suggesting that its share price is 251% less volatile than the S&P 500.
Summary
Iterum Therapeutics beats Summit Therapeutics on 8 of the 12 factors compared between the two stocks.
About Iterum Therapeutics
Iterum Therapeutics plc, a clinical-stage pharmaceutical company, engages in developing and commercializing anti-infectives in Ireland, Bermuda, and the United States. It is developing sulopenem, a novel anti-infective compound with oral and intravenous formulations that is in Phase III clinical trials for the treatment of uncomplicated urinary tract infections, complicated urinary tract infections, and complicated intra-abdominal infections. The company was incorporated in 2015 and is headquartered in Dublin, Ireland.
About Summit Therapeutics
Summit Therapeutics Inc., a biopharmaceutical company, focuses on discovery, development, and commercialization of patient, physician, caregiver, and societal friendly medicinal therapies in the United States, and the United Kingdom. The company’s lead development candidate is Ivonescimab, a bispecific antibody for immunotherapy through blockade of PD-1 with the anti-angiogenesis; and anti-infectives portfolio includes SMT-738, a novel class of precision antibiotics for the treatment of multidrug resistant infections, which primarily includes carbapenem-resistant Enterobacteriaceae infections. It has a collaboration and license agreement with Akeso, Inc. and its affiliates to develop and commercialize ivonescimab, as well as strategic collaboration with The University of Texas MD Anderson Cancer Center for the purpose of accelerating the development of ivonescimab. The company was founded in 2003 and is headquartered in Miami, Florida.
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