GTX (NASDAQ: GTXI) and Wave Life Sciences (NASDAQ:WVE) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Institutional & Insider Ownership

11.6% of GTX shares are owned by institutional investors. Comparatively, 73.7% of Wave Life Sciences shares are owned by institutional investors. 41.2% of GTX shares are owned by company insiders. Comparatively, 53.0% of Wave Life Sciences shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares GTX and Wave Life Sciences’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GTX N/A N/A -$17.72 million ($1.76) -6.28
Wave Life Sciences $1.49 million 607.09 -$55.40 million ($3.54) -9.19

GTX has higher earnings, but lower revenue than Wave Life Sciences. Wave Life Sciences is trading at a lower price-to-earnings ratio than GTX, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

GTX has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500. Comparatively, Wave Life Sciences has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for GTX and Wave Life Sciences, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GTX 0 0 2 0 3.00
Wave Life Sciences 0 0 5 0 3.00

GTX currently has a consensus target price of $17.00, suggesting a potential upside of 53.71%. Wave Life Sciences has a consensus target price of $41.60, suggesting a potential upside of 27.80%. Given GTX’s higher possible upside, equities analysts clearly believe GTX is more favorable than Wave Life Sciences.

Profitability

This table compares GTX and Wave Life Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GTX N/A -125.79% -99.26%
Wave Life Sciences -3,338.68% -59.52% -48.48%

GTX Company Profile

GTx, Inc. is a biopharmaceutical company focused on the discovery, development and commercialization of small molecules for the treatment of cancer, including treatments for breast and prostate cancer, and other medical conditions. The Company is engaged in the development of selective androgen receptor modulators (SARMs). Its lead product candidate, enobosarm (GTx-024), had been evaluated in over 24 completed or ongoing clinical trials, including in approximately six Phase II and two Phase III clinical trials. The Company is also engaged in the development of GTx-758 (Capesaris), an oral nonsteroidal selective estrogen receptor alpha agonist, for secondary hormonal therapy in men with metastatic and high-risk non-metastatic castration resistant prostate cancer (CRPC). Its product candidate, Enobosarm, for the treatment of women with advanced androgen receptor (AR) positive triple-negative breast cancer (TNBC), is in Phase II clinical development-stage.

Wave Life Sciences Company Profile

WAVE Life Sciences Ltd. is a genetic medicines company. The Company, through its synthetic chemistry drug development platform, designs, develops and commercializes a pipeline of nucleic acid therapeutic candidates for genetically defined diseases. The Company is engaged in developing oligonucleotides that target genetic defects to either reduce the expression of disease-promoting proteins or transform the production of dysfunctional mutant proteins into the production of functional proteins. The nucleic acid therapeutics, which the Company is developing are stereopure. A stereopure oligonucleotide includes molecules with atoms arranged in three-dimensional orientations at each linkage. The Company has three programs in Huntington’s disease (HD) and Duchenne Muscular Dystrophy (DMD), and three additional development candidates.

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