Critical Survey: Eyepoint Pharmaceuticals (NASDAQ:EYPT) versus Phathom Pharmaceuticals (NASDAQ:PHAT)

Phathom Pharmaceuticals (NASDAQ:PHAT) and Eyepoint Pharmaceuticals (NASDAQ:EYPT) are both small-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Analyst Ratings

This is a summary of recent recommendations for Phathom Pharmaceuticals and Eyepoint Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phathom Pharmaceuticals	1	1	6	1	2.78
Eyepoint Pharmaceuticals	1	6	4	0	2.27

Phathom Pharmaceuticals currently has a consensus price target of $21.25, indicating a potential upside of 207.08%. Eyepoint Pharmaceuticals has a consensus price target of $25.70, indicating a potential upside of 690.77%. Given Eyepoint Pharmaceuticals’ higher probable upside, analysts plainly believe Eyepoint Pharmaceuticals is more favorable than Phathom Pharmaceuticals.

Insider and Institutional Ownership

99.0% of Phathom Pharmaceuticals shares are held by institutional investors. Comparatively, 99.4% of Eyepoint Pharmaceuticals shares are held by institutional investors. 9.3% of Phathom Pharmaceuticals shares are held by insiders. Comparatively, 5.1% of Eyepoint Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Phathom Pharmaceuticals and Eyepoint Pharmaceuticals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phathom Pharmaceuticals	$175.11 million	3.20	-$221.25 million	($1.28)	-5.41
Eyepoint Pharmaceuticals	$31.37 million	8.93	-$231.96 million	($3.74)	-0.87

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

Volatility & Risk

Phathom Pharmaceuticals has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, Eyepoint Pharmaceuticals has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500.

Profitability

This table compares Phathom Pharmaceuticals and Eyepoint Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phathom Pharmaceuticals	-41.34%	N/A	-20.81%
Eyepoint Pharmaceuticals	-10,994.73%	-135.81%	-108.35%

Summary

Phathom Pharmaceuticals beats Eyepoint Pharmaceuticals on 10 of the 15 factors compared between the two stocks.

About Phathom Pharmaceuticals

Phathom Pharmaceuticals, Inc., biopharmaceutical company, focuses on developing and commercializing treatments for gastrointestinal diseases. The company has the rights in the United States, Europe, and Canada for an investigational potassium-competitive acid blocker (P-CAB) that blocks acid secretion in the stomach. It is also developing vonoprazan for the treatment of erosive gastroesophageal reflux disease; and in combination with antibiotics for the treatment of Helicobacter pylori infection. The company was incorporated in 2018 and is headquartered in Florham Park, New Jersey.

About Eyepoint Pharmaceuticals

EyePoint Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, engages in developing and commercializing therapeutics to improve the lives of patients with serious retinal diseases. The company's pipeline leverages its proprietary bioerodible Durasert E technology for sustained intraocular drug delivery. Its lead product candidate is EYP-1901, an investigational sustained delivery treatment for VEGF-mediated retinal diseases combining vorolanib, a selective and patent-protected tyrosine kinase inhibitor with Durasert E which is in Phase 2 clinical trials for wet age-related macular degeneration (wet AMD), non-proliferative diabetic retinopathy (NPDR), and diabetic macular edema (DME). The company's pipeline programs also include EYP-2301, a promising TIE-2 agonist formulated in Durasert E to potentially improve outcomes in serious retinal diseases. The company was formerly known as pSivida Corp. and changed its name to EyePoint Pharmaceuticals, Inc. in March 2018. EyePoint Pharmaceuticals, Inc. was incorporated in 1987 and is headquartered in Watertown, Massachusetts.