Viking Therapeutics (NASDAQ: VKTX) and MyoKardia (NASDAQ:MYOK) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.

Valuation & Earnings

This table compares Viking Therapeutics and MyoKardia’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Viking Therapeutics N/A N/A -$14.73 million ($0.84) -3.26
MyoKardia $39.20 million 34.83 -$13.15 million ($0.76) -50.26

MyoKardia has higher revenue and earnings than Viking Therapeutics. MyoKardia is trading at a lower price-to-earnings ratio than Viking Therapeutics, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

5.5% of Viking Therapeutics shares are held by institutional investors. Comparatively, 43.7% of MyoKardia shares are held by institutional investors. 19.6% of Viking Therapeutics shares are held by company insiders. Comparatively, 33.4% of MyoKardia shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Viking Therapeutics and MyoKardia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viking Therapeutics N/A -330.42% -144.29%
MyoKardia -53.49% -14.92% -11.53%

Analyst Recommendations

This is a summary of current ratings for Viking Therapeutics and MyoKardia, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viking Therapeutics 0 0 2 0 3.00
MyoKardia 0 0 5 0 3.00

Viking Therapeutics presently has a consensus price target of $6.00, indicating a potential upside of 118.98%. MyoKardia has a consensus price target of $55.00, indicating a potential upside of 43.98%. Given Viking Therapeutics’ higher possible upside, equities research analysts clearly believe Viking Therapeutics is more favorable than MyoKardia.

Risk & Volatility

Viking Therapeutics has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500. Comparatively, MyoKardia has a beta of 4.58, meaning that its stock price is 358% more volatile than the S&P 500.

Summary

MyoKardia beats Viking Therapeutics on 9 of the 11 factors compared between the two stocks.

Viking Therapeutics Company Profile

Viking Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company focuses on the development of therapies for metabolic and endocrine disorders. The Company’s clinical program, VK5211, is an orally available drug candidate, which is in Phase II clinical trial for acute rehabilitation following non-elective hip fracture surgery. VK5211 is a non-steroidal selective androgen receptor modulator (SARM). Its second program is focused on the development of orally available small molecule thyroid hormone receptor beta agonists. Its two molecules are VK2809 and VK0214. VK2809 is an orally available, tissue and receptor-subtype selective agonist of the thyroid beta receptor that is entering Phase II development for the treatment of patients with hypercholesterolemia and fatty liver disease. It is developing VK0214 for the treatment of X-linked adrenoleukodystrophy (X-ALD). It has a pipeline with approximately three additional programs targeting metabolic diseases and anemia.

MyoKardia Company Profile

MyoKardia, Inc. is a clinical-stage biopharmaceutical company. The Company focuses on the treatment of heritable cardiomyopathies, a group of rare, genetically-driven forms of heart failure that result from biomechanical defects in cardiac muscle contraction. The Company is engaged in the business of developing and commercializing therapeutics. The Company has used its precision medicine platform to generate an initial pipeline of over four therapeutic programs for the chronic treatment of two forms of heritable cardiomyopathy-hypertrophic cardiomyopathy (HCM), and dilated cardiomyopathy (DCM). Additionally, the Company has three preclinical programs, HCM-2, DCM-2 and LUS-1. Its lead product candidate, MYK-461, is an orally-administered small molecule designed to reduce excessive cardiac muscle contractility leading to HCM.

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