Scilex (NASDAQ:SCLX – Get Free Report) and C4 Therapeutics (NASDAQ:CCCC – Get Free Report) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.
Institutional and Insider Ownership
69.7% of Scilex shares are owned by institutional investors. Comparatively, 78.8% of C4 Therapeutics shares are owned by institutional investors. 8.7% of Scilex shares are owned by company insiders. Comparatively, 8.0% of C4 Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Scilex and C4 Therapeutics’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Scilex | $46.74 million | 6.94 | -$114.33 million | ($1.31) | -1.37 |
| C4 Therapeutics | $20.76 million | 15.31 | -$132.49 million | ($2.37) | -1.95 |
Volatility and Risk
Scilex has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, C4 Therapeutics has a beta of 3.1, meaning that its share price is 210% more volatile than the S&P 500.
Profitability
This table compares Scilex and C4 Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Scilex | -229.47% | N/A | -106.29% |
| C4 Therapeutics | -629.24% | -52.85% | -34.01% |
Analyst Recommendations
This is a summary of recent recommendations for Scilex and C4 Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Scilex | 0 | 0 | 3 | 0 | 3.00 |
| C4 Therapeutics | 0 | 4 | 3 | 0 | 2.43 |
Scilex currently has a consensus price target of $8.00, indicating a potential upside of 346.93%. C4 Therapeutics has a consensus price target of $10.13, indicating a potential upside of 119.16%. Given Scilex’s stronger consensus rating and higher possible upside, research analysts plainly believe Scilex is more favorable than C4 Therapeutics.
Summary
Scilex beats C4 Therapeutics on 9 of the 13 factors compared between the two stocks.
About Scilex
Scilex Holding Company focuses on acquiring, developing, and commercializing non-opioid pain management products for the treatment of acute and chronic pain. Its commercial products include ZTlido (lidocaine topical system) 1.8% (ZTlido), a prescription lidocaine topical product for the relief of neuropathic pain associated with postherpetic neuralgia (PHN), which is a form of post-shingles nerve pain; ELYXYB, a ready-to-use oral solution for the acute treatment of migraine with or without aura in adults; and GLOPERBA, a liquid oral version of the anti-gout medicine colchicine indicated for the prophylaxis of painful gout flares in adults. The company is also developing three product candidates, including SP-102 (10 mg dexamethasone sodium phosphate viscous gel) (SEMDEXA), a novel viscous gel formulation of a used corticosteroid for epidural injections, which has completed a Phase 3 study to treat lumbosacral radicular pain or sciatica; SP-103 (lidocaine topical system) 5.4% (SP-103), a formulation of ZTlido for the treatment of chronic neck pain and low back pain (LBP) that has completed a Phase 2 trial; and SP-104 (4.5 mg low-dose naltrexone hydrochloride delayed-release capsules) (SP-104), a novel low-dose delayed-release naltrexone hydrochloride, which has completed Phase 1 trials for the treatment of fibromyalgia. The company is headquartered in Palo Alto, California.
About C4 Therapeutics
C4 Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops novel therapeutic candidates to degrade disease-causing proteins for the treatment of cancer, neurodegenerative conditions, and other diseases. Its lead product candidate is CFT7455, an orally bioavailable MonoDAC degrader of protein that is in Phase 1/2 trial targeting IKZF1 and IKZF3 for multiple myeloma and non-Hodgkin lymphomas, including peripheral T-cell lymphoma and mantle cell lymphoma, currently under Phase 1/2 clinical trials. The company is also developing CFT1946, an orally bioavailable BiDAC degrader targeting V600X mutant BRAF to treat melanoma, non-small cell lung cancer (NSCLC), colorectal cancer, and other solid malignancies, currently under Phase 1/2 clinical trials; and CFT8919, an orally bioavailable, allosteric, and mutant-selective BiDAC degrader of epidermal growth factor receptor, or EGFR, with an L858R mutation in NSCLC. It has strategic collaborations with F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc.; Biogen MA, Inc.; Betta Pharmaceuticals, Co., Ltd.; and Merck Sharp & Dohme, LLC, as well as Calico Life Sciences LLC. The company was incorporated in 2015 and is headquartered in Watertown, Massachusetts.
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