Financial Contrast: TRACON Pharmaceuticals (NASDAQ:TCON) and Fresh Tracks Therapeutics (NASDAQ:FRTX)

Fresh Tracks Therapeutics (NASDAQ:FRTX) and TRACON Pharmaceuticals (NASDAQ:TCON) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of current ratings and target prices for Fresh Tracks Therapeutics and TRACON Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fresh Tracks Therapeutics	0	0	0	0	N/A
TRACON Pharmaceuticals	0	1	0	0	2.00

TRACON Pharmaceuticals has a consensus target price of $60.00, suggesting a potential upside of 99,900.00%. Given TRACON Pharmaceuticals’ higher probable upside, analysts clearly believe TRACON Pharmaceuticals is more favorable than Fresh Tracks Therapeutics.

Earnings & Valuation

This table compares Fresh Tracks Therapeutics and TRACON Pharmaceuticals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fresh Tracks Therapeutics	$8.01 million	0.55	-$5.69 million	($1.41)	-0.52
TRACON Pharmaceuticals	$12.05 million	0.02	-$3.59 million	$0.67	0.09

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

Insider & Institutional Ownership

25.0% of Fresh Tracks Therapeutics shares are owned by institutional investors. Comparatively, 11.6% of TRACON Pharmaceuticals shares are owned by institutional investors. 0.2% of Fresh Tracks Therapeutics shares are owned by company insiders. Comparatively, 5.3% of TRACON Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Fresh Tracks Therapeutics has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, TRACON Pharmaceuticals has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Profitability

This table compares Fresh Tracks Therapeutics and TRACON Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fresh Tracks Therapeutics	N/A	-60.83%	-50.73%
TRACON Pharmaceuticals	N/A	-237.65%	57.29%

Summary

TRACON Pharmaceuticals beats Fresh Tracks Therapeutics on 8 of the 11 factors compared between the two stocks.

About Fresh Tracks Therapeutics

Fresh Tracks Therapeutics, Inc. does not have significant operations. Previously, the company was engaged in the development of various prescription therapeutics for the treatment of autoimmune, inflammatory, and other debilitating diseases in the United States. Fresh Tracks Therapeutics, Inc. was founded in 2009 and is headquartered in Boulder, Colorado.

About TRACON Pharmaceuticals

TRACON Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of novel targeted therapeutics for cancer in the United States. Its clinical stage products include envafolimab (KN035), a PD-L1 single-domain antibody for the treatment of refractory soft tissue sarcoma; and YH001, an investigational humanized cytotoxic T-lymphocyte-associated protein 4 IgG1 monoclonal antibody that is in Phase I clinical trial for the treatment of various cancer indications. The company's clinical stage products also include TRC102, a small molecule that is in Phase II clinical trial for the treatment of mesothelioma, and in Phase I clinical trial to treat solid tumors, lung cancer, and glioblastoma; and TJ004309, a CD73 antibody that is in Phase I clinical development for the treatment of solid tumors. In addition, it is developing bispecific antibodies, which are in preclinical stage. It has collaboration and license agreements with 3D Medicines Co., Ltd. and Jiangsu Alphamab Biopharmaceuticals Co., Ltd. for the development of envafolimab; I-Mab Biopharma for the development of CD73 antibody TJ004309 and bispecific antibodies; and cooperative research and development agreement with National Cancer Institute. The company was formerly known as Lexington Pharmaceuticals, Inc. and changed its name to TRACON Pharmaceuticals, Inc. in March 2005. TRACON Pharmaceuticals, Inc. was incorporated in 2004 and is headquartered in San Diego, California.