Reviewing Cidara Therapeutics (CDTX) & Paratek Pharmaceuticals (PRTK)

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

Volatility and Risk

Cidara Therapeutics has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, Paratek Pharmaceuticals has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Cidara Therapeutics N/A -82.17% -65.11%
Paratek Pharmaceuticals -1,236.38% -100.84% -58.71%

Valuation and Earnings

This table compares Cidara Therapeutics and Paratek Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cidara Therapeutics N/A N/A -$48.16 million ($3.40) -2.04
Paratek Pharmaceuticals $30,000.00 14,482.23 -$111.63 million ($3.73) -3.75

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

Institutional and Insider Ownership

59.5% of Cidara Therapeutics shares are held by institutional investors. Comparatively, 74.6% of Paratek Pharmaceuticals shares are held by institutional investors. 18.9% of Cidara Therapeutics shares are held by company insiders. Comparatively, 4.9% of Paratek Pharmaceuticals shares are held by company 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Cidara Therapeutics and Paratek Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cidara Therapeutics 0 1 7 1 3.00
Paratek Pharmaceuticals 0 0 6 1 3.14

Cidara Therapeutics currently has a consensus target price of $13.50, indicating a potential upside of 94.24%. Paratek Pharmaceuticals has a consensus target price of $42.71, indicating a potential upside of 205.76%. Given Paratek Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Paratek Pharmaceuticals is more favorable than Cidara Therapeutics.

Summary

Cidara Therapeutics beats Paratek Pharmaceuticals on 7 of the 12 factors compared between the two stocks.

Cidara Therapeutics Company Profile

Cidara Therapeutics, Inc., formerly K2 Therapeutics, Inc., is a clinical-stage biotechnology company. The Company is engaged in the discovery, development and commercialization of anti-infectives. It is developing a pipeline of product and development candidates with a focus on serious fungal infections. Its product portfolio consists of over two formulations of its echinocandin, CD101. CD101 IV is a long-acting therapy for the treatment and prevention of serious, invasive fungal infections. CD101 topical, its second product candidate, is being developed for the treatment of vulvovaginal candidiasis (VVC) and recurrent VVC (RVVC), a prevalent mucosal infection. Its immunotherapy technology platform, Cloudbreak, is used to create compounds designed to direct a patient’s immune cells to attack and eliminate pathogens that cause infectious disease. The Company is also developing CD201, its bispecific antimicrobial immunotherapy.

Paratek Pharmaceuticals Company Profile

Paratek Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on the development and commercialization of therapeutics based upon tetracycline chemistry. Its product candidates are the antibacterials omadacycline and sarecycline. Omadacycline is an antibiotic being developed for use as an empiric monotherapy option for patients suffering from serious, community-acquired bacterial infections. Sarecycline is a tetracycline-derived compound designed for use in the treatment of acne and rosacea. Its other product candidates are tetracycline-derived, molecular entities and are designed to utilize the recognized immune-modulation, anti-inflammatory and other beneficial properties of the tetracycline class. These research stage programs include product candidates for multiple sclerosis, spinal muscular atrophy, systemic inflammatory diseases, such as rheumatoid arthritis and inflammatory bowel diseases.

Receive News & Ratings for Cidara Therapeutics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cidara Therapeutics and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply