Critical Analysis: Synlogic (NASDAQ:SYBX) and Hillstream BioPharma (NASDAQ:HILS)

Synlogic (NASDAQ:SYBX) and Hillstream BioPharma (NASDAQ:HILS) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Institutional & Insider Ownership

63.4% of Synlogic shares are held by institutional investors. Comparatively, 13.4% of Hillstream BioPharma shares are held by institutional investors. 3.0% of Synlogic shares are held by insiders. Comparatively, 30.2% of Hillstream BioPharma shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Synlogic and Hillstream BioPharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Synlogic	-2,284.65%	-207.84%	-114.81%
Hillstream BioPharma	N/A	-188.44%	-149.61%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Synlogic and Hillstream BioPharma, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synlogic	0	4	1	0	2.20
Hillstream BioPharma	0	0	0	0	0.00

Synlogic currently has a consensus price target of $30.00, indicating a potential upside of 2,105.88%. Given Synlogic’s stronger consensus rating and higher possible upside, analysts clearly believe Synlogic is more favorable than Hillstream BioPharma.

Volatility and Risk

Synlogic has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Hillstream BioPharma has a beta of 3.08, suggesting that its stock price is 208% more volatile than the S&P 500.

Earnings and Valuation

This table compares Synlogic and Hillstream BioPharma”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synlogic	$3.37 million	4.72	-$57.28 million	($4.16)	-0.33
Hillstream BioPharma	N/A	N/A	-$8.47 million	($0.72)	-3.38

Hillstream BioPharma has lower revenue, but higher earnings than Synlogic. Hillstream BioPharma is trading at a lower price-to-earnings ratio than Synlogic, indicating that it is currently the more affordable of the two stocks.

Summary

Synlogic beats Hillstream BioPharma on 7 of the 13 factors compared between the two stocks.

About Synlogic

Synlogic, Inc., a clinical-stage biopharmaceutical company, engages in the discovery and development of synthetic biotics to treat metabolic diseases in the United States. Its pipeline include SYNB1618, an orally administered, non-systemically absorbed drug candidate to treat phenylketonuria; SYNB1934, an orally administered, non-systemically absorbed drug candidate, which is in Phase III clinical trial to treat phenylketonuria; SYNB1353, an orally administered, non-systemically absorbed drug candidate, which is in Phase I clinical to treat homocystinuria; SYNB8802, an orally administered, non-systemically absorbed drug candidate that is in Phase II clinical trial for the treatment of enteric hyperoxaluria; and SYNB2081 to lower uric acid for the potential treatment of gout. The company has a collaboration agreement with F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc. for the research and pre-clinical development of a synthetic biotic medicine for the treatment of inflammatory bowel disease; and Ginkgo Bioworks, Inc. Synlogic, Inc. is based in Cambridge, Massachusetts.

About Hillstream BioPharma

Hillstream BioPharma, Inc., a pre-clinical biotechnology company, develops novel therapeutic candidates targeting ferroptosis, an anti-cancer mechanism resulting in iron mediated cell death (IMCD) and targeted immuno-oncology novel biologics for the treatment drug resistant cancers. The company's product candidate is HSB-1216, an IMCD inducer targeting solid tumors. It also develops HSB-3215, an anti-HER2 monoclonal antibody candidate; and HSB-1940, a Quatrabody that is a proprietary IO biologic in development targeting PD-1. The company was incorporated in 2017 and is based in Bridgewater, New Jersey.