Contrasting Pear Therapeutics (NASDAQ:PEAR) and Better Therapeutics (NASDAQ:BTTX)

Pear Therapeutics (NASDAQ:PEARGet Rating) and Better Therapeutics (NASDAQ:BTTXGet Rating) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Profitability

This table compares Pear Therapeutics and Better Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pear Therapeutics N/A -289.70% -32.24%
Better Therapeutics N/A -142.64% -46.31%

Institutional and Insider Ownership

53.7% of Pear Therapeutics shares are held by institutional investors. Comparatively, 15.0% of Better Therapeutics shares are held by institutional investors. 59.4% of Better Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Pear Therapeutics and Better Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pear Therapeutics 0 1 4 0 2.80
Better Therapeutics 0 0 2 0 3.00

Pear Therapeutics presently has a consensus price target of $11.75, indicating a potential upside of 170.74%. Better Therapeutics has a consensus price target of $15.00, indicating a potential upside of 752.27%. Given Better Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Better Therapeutics is more favorable than Pear Therapeutics.

Valuation and Earnings

This table compares Pear Therapeutics and Better Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pear Therapeutics $4.21 million 142.36 -$65.14 million N/A N/A
Better Therapeutics $10,000.00 4,155.36 -$40.33 million N/A N/A

Better Therapeutics has lower revenue, but higher earnings than Pear Therapeutics.

Volatility and Risk

Pear Therapeutics has a beta of 0.06, suggesting that its share price is 94% less volatile than the S&P 500. Comparatively, Better Therapeutics has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.

Summary

Better Therapeutics beats Pear Therapeutics on 7 of the 11 factors compared between the two stocks.

Pear Therapeutics Company Profile (Get Rating)

Pear Therapeutics, Inc., a commercial-stage healthcare company, develops and sells software-based medicines. Its commercial products are reSET for the treatment of substance use disorder related to alcohol, cannabis, cocaine, and stimulants; reSET-O for the treatment of opioid use disorder in combination with buprenorphine; and Somryst, a software-based treatment for chronic insomnia. The company is also developing a pipeline of 14 product candidates focusing on psychiatry, neurology, and outside of central nervous system therapeutic areas, such as gastrointestinal, oncology, and cardiovascular. Pear Therapeutics, Inc. was incorporated in 2013 and is based in Boston, Massachusetts.

Better Therapeutics Company Profile (Get Rating)

Better Therapeutics, Inc. engages in developing software-based prescription digital therapeutics (PDT) platform candidates for treating diabetes, heart disease, and other cardiometabolic conditions in the United States. Its lead product candidate in development is BT-001, an investigational PDT platform that uses digitally delivered Nutritional Cognitive Behavioral Therapy to treat type 2 diabetes. The company's products under development also include BT-002, a PDT that help patients with hypertension improve their blood pressure; and BT-003, a PDT that help patients with hyperlipidemia enhance cholesterol levels. Better Therapeutics, Inc. was founded in 2015 and is headquartered in San Francisco, California.

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