Analyzing Cytokinetics (NASDAQ:CYTK) and Tempest Therapeutics (NASDAQ:TPST)

Cytokinetics (NASDAQ:CYTK) and Tempest Therapeutics (NASDAQ:TPST) are both healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Volatility and Risk

Cytokinetics has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Tempest Therapeutics has a beta of -1.72, suggesting that its stock price is 272% less volatile than the S&P 500.

Institutional and Insider Ownership

22.5% of Tempest Therapeutics shares are owned by institutional investors. 2.6% of Cytokinetics shares are owned by company insiders. Comparatively, 36.2% of Tempest Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Cytokinetics and Tempest Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cytokinetics	$88.04 million	115.00	-$784.96 million	($6.84)	-11.90
Tempest Therapeutics	N/A	N/A	-$26.26 million	($6.01)	-0.15

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

Analyst Ratings

This is a summary of current ratings and price targets for Cytokinetics and Tempest Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cytokinetics	1	1	17	2	2.95
Tempest Therapeutics	1	1	0	0	1.50

Cytokinetics currently has a consensus price target of $99.90, indicating a potential upside of 22.77%. Given Cytokinetics’ stronger consensus rating and higher probable upside, analysts clearly believe Cytokinetics is more favorable than Tempest Therapeutics.

Profitability

This table compares Cytokinetics and Tempest Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cytokinetics	-784.02%	N/A	-52.86%
Tempest Therapeutics	N/A	-355.61%	-121.21%

Summary

Cytokinetics beats Tempest Therapeutics on 8 of the 14 factors compared between the two stocks.

About Cytokinetics

Cytokinetics, Incorporated, a late-stage biopharmaceutical company, focuses on discovering, developing, and commercializing muscle activators and inhibitors as potential treatments for debilitating diseases. The company develops small molecule drug candidates primarily engineered to impact muscle function and contractility. Its drug candidates include omecamtiv mecarbil, a novel cardiac myosin activator that is in Phase III clinical trial in patients with heart failure. The company also develops CK-136, a novel cardiac troponin activator that is in Phase I clinical trial; CK-586, a small molecule cardiac myosin inhibitor, that is in Phase I clinical trial; and aficamten, a novel cardiac myosin inhibitor, which is in Phase III clinical trial for the treatment of patients with symptomatic obstructive hypertrophic cardiomyopathy. Cytokinetics, Incorporated has a strategic alliance with Ji Xing Pharmaceuticals Limited. The company was incorporated in 1997 and is headquartered in South San Francisco, California.

About Tempest Therapeutics

Tempest Therapeutics, Inc., a clinical-stage oncology company, develops small molecule therapeutics that combine both tumor-targeted and immune-mediated mechanisms to treat various tumors. The company's two clinical programs are TPST-1495, a dual antagonist of EP2 and EP4, receptors of prostaglandin E2, which is in a Phase 1 trial to treat cancer; and TPST-1120, a selective antagonist of peroxisome proliferator-activated receptor alpha that is in a Phase 1 trial for the treatment of solid tumors. It also develops TREX-1, an enzyme that regulates cGAS/STING pathway signaling and immune recognition. Tempest Therapeutics, Inc. was incorporated in 2011 and is headquartered in Brisbane, California. Tempest Therapeutics, Inc. operates as a subsidiary of Inception Sciences, Inc.