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

Profitability

This table compares Jounce Therapeutics and Cidara Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jounce Therapeutics -50.54% -23.27% -11.42%
Cidara Therapeutics N/A -96.55% -72.59%

Institutional and Insider Ownership

84.1% of Jounce Therapeutics shares are owned by institutional investors. Comparatively, 67.1% of Cidara Therapeutics shares are owned by institutional investors. 44.0% of Jounce Therapeutics shares are owned by insiders. Comparatively, 15.2% of Cidara Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Jounce Therapeutics has a beta of 5.23, indicating that its share price is 423% more volatile than the S&P 500. Comparatively, Cidara Therapeutics has a beta of 1.99, indicating that its share price is 99% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Jounce Therapeutics and Cidara Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jounce Therapeutics 0 3 3 0 2.50
Cidara Therapeutics 0 0 5 0 3.00

Jounce Therapeutics currently has a consensus target price of $13.20, indicating a potential upside of 89.66%. Cidara Therapeutics has a consensus target price of $13.25, indicating a potential upside of 211.76%. Given Cidara Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Cidara Therapeutics is more favorable than Jounce Therapeutics.

Earnings and Valuation

This table compares Jounce Therapeutics and Cidara Therapeutics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jounce Therapeutics $71.64 million 3.17 -$16.44 million ($0.57) -12.21
Cidara Therapeutics N/A N/A -$55.72 million ($3.18) -1.34

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

Summary

Jounce Therapeutics beats Cidara Therapeutics on 8 of the 13 factors compared between the two stocks.

About Jounce Therapeutics

Jounce Therapeutics, Inc., a clinical stage immunotherapy company, develops therapies for the treatment of cancer. Its lead product candidate is JTX-2011, a clinical stage monoclonal antibody that binds to and activates the inducible T cell co-stimulator, a protein on the surface of certain T cells found in solid tumors, which is in Phase I/II clinical trial for the treatment of six tumor types, including head and neck squamous cell cancer, non-small cell lung cancer, triple negative breast cancer, melanoma, gastric cancer, and other tumor types identified through its translational science platform. The company is also developing JTX-4014, an anti-PD-1 antagonist antibody for combination therapy. Jounce Therapeutics, Inc. has a master research and collaboration agreement with Celgene Corporation focused on developing and commercializing biologic immunotherapies. The company was incorporated in 2012 and is headquartered in Cambridge, Massachusetts.

About Cidara Therapeutics

Cidara Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of anti-infectives for the treatment of diseases. Its lead product candidate is rezafungin acetate, a molecule in the echinocandin class of antifungals for the treatment and prevention of serious invasive fungal infections, including candidemia and invasive candidiasis, fungal infections associated with high mortality rates. It is also developing antibody-drug conjugates for multidrug-resistant bacterial infections that directly kill pathogens and also direct a patient's immune system to attack and eliminate bacterial, fungal, or viral pathogens. The company was formerly known as K2 Therapeutics, Inc. and changed its name to Cidara Therapeutics, Inc. in June 2014. Cidara Therapeutics, Inc. was founded in 2012 and is headquartered in San Diego, California.

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