Mirati Therapeutics (NASDAQ: MRTX) and Mateon Therapeutics (OTCMKTS:MATN) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of current ratings and target prices for Mirati Therapeutics and Mateon Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mirati Therapeutics 0 1 7 0 2.88
Mateon Therapeutics 0 1 3 0 2.75

Mirati Therapeutics presently has a consensus target price of $13.71, suggesting a potential downside of 13.75%. Mateon Therapeutics has a consensus target price of $1.75, suggesting a potential upside of 696.54%. Given Mateon Therapeutics’ higher probable upside, analysts clearly believe Mateon Therapeutics is more favorable than Mirati Therapeutics.

Valuation and Earnings

This table compares Mirati Therapeutics and Mateon Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mirati Therapeutics N/A N/A -$83.11 million ($3.11) -5.11
Mateon Therapeutics N/A N/A -$13.65 million ($0.56) -0.39

Mirati Therapeutics is trading at a lower price-to-earnings ratio than Mateon Therapeutics, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

64.7% of Mirati Therapeutics shares are owned by institutional investors. 5.1% of Mirati Therapeutics shares are owned by company insiders. Comparatively, 4.5% of Mateon Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Mirati Therapeutics has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, Mateon Therapeutics has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500.

Profitability

This table compares Mirati Therapeutics and Mateon Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mirati Therapeutics N/A -96.82% -82.29%
Mateon Therapeutics N/A -210.82% -175.67%

Summary

Mirati Therapeutics beats Mateon Therapeutics on 7 of the 10 factors compared between the two stocks.

Mirati Therapeutics Company Profile

Mirati Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops a pipeline of oncology products. The company’s clinical stage product candidates include glesatinib, an orally-bioavailable, potent, small molecule kinase inhibitor that is in Phase II clinical trials for the treatment of non-small cell lung cancer (NSCLC) patients with genetic alterations of MET; and in Phase Ib clinical trials in patients with genetic alterations of MET and Axl in NSCLC and other solid tumors. Its clinical stage product candidates also comprise sitravatinib, an orally-bioavailable, potent, small molecule spectrum-selective kinase inhibitor, which is in Phase II clinical trials for the treatment of solid tumors, such as NSCLC and metastatic Renal Cell Carcinoma, as well as in Phase Ib clinical trials to treat NSCLC patients with RET, CHR4q12, CBL, and AXL genetic alterations; and mocetinostat, an orally administered spectrum-selective Class 1 histone deacetylase inhibitor, which is in Phase Ib/II clinical trials in combination with durvalumab for the treatment of patients with NSCLC. The company has a collaboration agreement with Foundation Medicine, Inc. and Guardant Health, Inc. to explore development of their platforms as companion diagnostics for glesatinib. Mirati Therapeutics, Inc. is headquartered in San Diego, California.

Mateon Therapeutics Company Profile

Mateon Therapeutics, Inc., formerly OXiGENE, Inc., is a biopharmaceutical company. The Company is focused on the development of vascular disrupting agents (VDAs) for the treatment of cancer. The Company is engaged in developing two clinical stage investigational drugs: VDAs-CA4P and OXi4503. Its lead compound is CA4P, which is also known as combretastatin A4-phosphate, fosbretabulin tromethamine, fosbretabulin and ZYBRESTAT. VDAs selectively targets the vasculature of cancer tumors and obstructs a tumor’s blood supply without disrupting the blood supply to normal tissues. VDAs are in a class of drugs called vascular targeted therapies (VTTs), which also includes anti-angiogenic agents (AAs). CA4P is a reversible tubulin binding agent that selectively targets the endothelial cells that make up the blood vessel walls in solid tumors. The Company is pursuing the development of a product candidate, OXi4503, which is a dual-mechanism VDA.

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