Head-To-Head Comparison: Certara (NASDAQ:CERT) & Pheton (NASDAQ:PTHL)

Pheton (NASDAQ:PTHL) and Certara (NASDAQ:CERT) are both small-cap healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Insider and Institutional Ownership

74.0% of Certara shares are held by institutional investors. 1.1% of Certara shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Pheton and Certara, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pheton	1	0	0	0	1.00
Certara	1	6	4	1	2.42

Certara has a consensus price target of $8.28, indicating a potential downside of 1.81%. Given Certara’s stronger consensus rating and higher probable upside, analysts clearly believe Certara is more favorable than Pheton.

Earnings & Valuation

This table compares Pheton and Certara”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pheton	$305,215.00	6.58	-$660,000.00	N/A	N/A
Certara	$418.84 million	3.07	-$1.60 million	($0.45)	-18.73

Pheton has higher earnings, but lower revenue than Certara.

Profitability

This table compares Pheton and Certara’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pheton	N/A	N/A	N/A
Certara	-16.75%	3.86%	2.65%

Volatility and Risk

Pheton has a beta of 5.4, indicating that its share price is 440% more volatile than the S&P 500. Comparatively, Certara has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.

Summary

Certara beats Pheton on 9 of the 13 factors compared between the two stocks.

About Pheton

Pheton Holdings Ltd. operates as a holding company with interests in providing healthcare solutions. The firm through its subsidiaries engages in the development and commercialization of brachytherapy TPS specifically used for radioactive particle implantation, a type of radiotherapy used in treating cancer patients by placing radioactive sources inside the patient that kill cancer cells and shrink tumors. The company was founded in 1998 and is headquartered in Beijing, China.

About Certara

Certara, Inc., together with its subsidiaries, provides software products and technology-enabled services to customers for biosimulation in drug discovery, preclinical and clinical research, regulatory submissions, and market access in the United States and internationally. It offers solutions for model-informed drug development, as well as biosimulation solution used to predict both pharmacokinetics and pharmacodynamics. The company provides Simcyp Simulator, a mechanistic biosimulation platform mechanistic biosimulation investigational new drug and translational stages; Simcyp Biopharmaceutics, used to identify and refine drug formulations; and Simcyp Secondary Intelligence which integrates toxicology with quantitative analysis of networks of molecular and functional biological changes to identify drug toxicity and adverse drug reactions. In addition, it offers Phoenix WinNonlin, a platform for non-compartmental analysis, pharmacokinetic/pharmacodynamic, and toxicokinetic; phoenix hosted, that provides a secured and validated certara amazon web services workspace; Phoenix NLME, a population modeling and simulation software for nonlinear mixed effects models; and pirana modeling workbench. Further, the company provides pinnacle 21, a cloud-based platform for clinical data automation, standardization, and validation; Pinnacle 21 Data Exchange, used to define data standards and specifications; and Metadata Repository, to enable study design using controlled and standardized data. It serves life sciences companies, biopharmaceutical companies, research organizations, academic institutions, and global regulators, as well as animal health, crop science, bio science, medical devices, and public sector industries. Certara Inc. was founded in 2008 and is headquartered in Princeton, New Jersey.