Critical Analysis: Alto Ingredients (NASDAQ:ALTO) and Cyclo Therapeutics (NASDAQ:CYTH)

Cyclo Therapeutics (NASDAQ:CYTHGet Rating) and Alto Ingredients (NASDAQ:ALTOGet Rating) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Profitability

This table compares Cyclo Therapeutics and Alto Ingredients’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cyclo Therapeutics -747.63% -120.38% -95.12%
Alto Ingredients 1.98% 3.49% 2.46%

Valuation and Earnings

This table compares Cyclo Therapeutics and Alto Ingredients’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cyclo Therapeutics $1.59 million 10.56 -$14.29 million ($1.58) -1.25
Alto Ingredients $1.21 billion 0.19 $46.08 million $0.35 9.00

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Cyclo Therapeutics and Alto Ingredients, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cyclo Therapeutics 0 0 0 0 N/A
Alto Ingredients 0 0 0 0 N/A

Alto Ingredients has a consensus price target of $8.00, suggesting a potential upside of 153.97%. Given Alto Ingredients’ higher possible upside, analysts clearly believe Alto Ingredients is more favorable than Cyclo Therapeutics.

Institutional & Insider Ownership

4.7% of Cyclo Therapeutics shares are owned by institutional investors. Comparatively, 52.2% of Alto Ingredients shares are owned by institutional investors. 12.0% of Cyclo Therapeutics shares are owned by company insiders. Comparatively, 3.4% of Alto Ingredients shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Cyclo Therapeutics has a beta of -0.51, meaning that its stock price is 151% less volatile than the S&P 500. Comparatively, Alto Ingredients has a beta of 2.41, meaning that its stock price is 141% more volatile than the S&P 500.

Summary

Alto Ingredients beats Cyclo Therapeutics on 10 of the 12 factors compared between the two stocks.

About Cyclo Therapeutics

(Get Rating)

Cyclo Therapeutics, Inc. engages in the development of cyclodextrin-based biopharmaceuticals for the treatment of disease. Its product pipeline include Trappsol Cyclo, which treats Neimann-Pick Type C disease and Alzheimer’s disease. The company was founded by Charles E. Rick Strattan on August 9, 1990 and is headquartered in Gainesville, FL.

About Alto Ingredients

(Get Rating)

Alto Ingredients, Inc. engages in the production and marketing of specialty alcohols and essential ingredients. It operates through the following segments: Marketing and Distribution, Pekin Production, and Other Production. The Marketing and Distribution segment includes marketing and merchant trading for company-produced alcohols and essential ingredients, on an aggregated basis, and third-party fuel-grade ethanol. The Pekin Campus Production segment deals with the production and sale of alcohols and essential ingredients produced at the company’s Pekin, Illinois campus. The Other Production segment covers the production and sale of fuel-grade ethanol and essential ingredients produced at all of the company’s other production facilities on an aggregated basis. The company was founded by William L. Jones and Neil M. Koehler on January 30, 2003 and is headquartered in Pekin, IL.

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