Aditxt (NASDAQ:ADTX) and Verastem (NASDAQ:VSTM) Critical Comparison

Aditxt (NASDAQ:ADTX) and Verastem (NASDAQ:VSTM) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Profitability

This table compares Aditxt and Verastem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aditxt	N/A	-615.43%	-157.59%
Verastem	N/A	-194.05%	-64.48%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Aditxt and Verastem, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aditxt	0	0	0	0	N/A
Verastem	0	0	8	0	3.00

Verastem has a consensus price target of $14.57, suggesting a potential upside of 392.28%. Given Verastem’s higher possible upside, analysts clearly believe Verastem is more favorable than Aditxt.

Institutional and Insider Ownership

15.5% of Aditxt shares are owned by institutional investors. Comparatively, 88.4% of Verastem shares are owned by institutional investors. 1.2% of Aditxt shares are owned by company insiders. Comparatively, 2.2% of Verastem shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Aditxt and Verastem”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aditxt	$329,739.00	6.35	-$32.38 million	N/A	N/A
Verastem	$2.60 million	45.81	-$87.37 million	($3.34)	-0.89

Aditxt has higher earnings, but lower revenue than Verastem.

Risk & Volatility

Aditxt has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Verastem has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500.

Summary

Verastem beats Aditxt on 8 of the 10 factors compared between the two stocks.

About Aditxt

Aditxt, Inc., a biotech company, develops technologies focuses on improving the health of the immune system through immune mapping and reprogramming. The company develops AditxtScore that allows individuals to understand, manage, and monitor their immune profiles in order to be informed about attacks on or by their immune system; and Apoptotic DNA Immunotherapy, a nucleic acid-based technology that utilizes an approach that mimics the way the body naturally induces tolerance to its own tissues. It is also developing ADi products for organ transplantation, including skin grafting, autoimmune diseases, and allergies. Aditxt, Inc. has a license agreement with Loma Linda University and Leland Stanford Junior University. The company was formerly known as ADiTx Therapeutics, Inc. and changed its name to Aditxt, Inc. in July 2021. Aditxt, Inc. was incorporated in 2017 and is headquartered in Richmond, Virginia.

About Verastem

Verastem, Inc., a development-stage biopharmaceutical company, focuses on developing and commercializing drugs for the treatment of cancer in the United States. Its product candidates are Avutometinib, an orally available small molecule RAF/MEK clamp that inhibits the ras sarcoma RAF/MEK, ERK mitogen activated pathway kinase pathway which is involved in cell proliferation, migration, transformation, and survival of tumor cells; and Defactinib, an oral small molecule inhibitor of FAK and proline-rich tyrosine kinase for various solid tumors. The company is involved in clinical studies, including RAMP 301, a randomized global confirmatory trial to evaluate the combination of Avutometinib and Defactinib for the treatment of patients with recurrent low-grade serous ovarian cancer; RAMP 201, an adaptive two-part multicenter, parallel cohort, randomized open label trial to evaluate the efficacy and safety of Avutometinib and in combination with Defactinib; and FRAME, an investigation of Avutometinib and Defactinib in patients with KRAS mutant cancers and subsequent analyses; and RAMP 204 and 205. It has license agreements with Chugai Pharmaceutical Co., Ltd. for the development, commercialization, and manufacture of products containing Avutometinib; and Pfizer Inc. to research, develop, manufacture, and commercialize products containing Pfizer's inhibitors of FAK for therapeutic, diagnostic, and prophylactic uses in humans. In addition, it has a clinical collaboration agreement with Amgen, Inc. to evaluate the combination of Avutometinib with Amgen's KRAS-G12C inhibitor LUMAKRAS which in Phase 1/2 trial entitled RAMP 203; and a discovery and development collaboration with GenFleet Therapeutics to advance new programs targeting RAS pathway-driven cancers. Verastem, Inc. was incorporated in 2010 and is headquartered in Needham, Massachusetts.