Comparing Phathom Pharmaceuticals (NASDAQ:PHAT) & Sophiris Bio (OTCMKTS:SPHS)

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

Risk and Volatility

Phathom Pharmaceuticals has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Sophiris Bio has a beta of 1.94, meaning that its share price is 94% more volatile than the S&P 500.

Valuation and Earnings

This table compares Phathom Pharmaceuticals and Sophiris Bio”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phathom Pharmaceuticals	$680,000.00	947.77	-$201.59 million	($5.69)	-1.66
Sophiris Bio	N/A	N/A	N/A	N/A	N/A

Sophiris Bio has lower revenue, but higher earnings than Phathom Pharmaceuticals.

Profitability

This table compares Phathom Pharmaceuticals and Sophiris Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phathom Pharmaceuticals	-1,292.14%	N/A	-79.57%
Sophiris Bio	N/A	N/A	N/A

Institutional and Insider Ownership

99.0% of Phathom Pharmaceuticals shares are owned by institutional investors. 24.1% of Phathom Pharmaceuticals shares are owned by insiders. Comparatively, 4.5% of Sophiris Bio shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Phathom Pharmaceuticals and Sophiris Bio, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phathom Pharmaceuticals	0	1	3	0	2.75
Sophiris Bio	0	0	0	0	0.00

Phathom Pharmaceuticals currently has a consensus target price of $22.50, indicating a potential upside of 138.73%. Given Phathom Pharmaceuticals’ stronger consensus rating and higher probable upside, research analysts plainly believe Phathom Pharmaceuticals is more favorable than Sophiris Bio.

Summary

Phathom Pharmaceuticals beats Sophiris Bio on 6 of the 9 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 Sophiris Bio

Sophiris Bio, Inc. is a clinical-stage biopharmaceutical company, which engages in the development of products for the treatment of urological diseases. The company was founded by James L. Heppell in May 2003 and is headquartered in La Jolla, CA.