9 Meters Biopharma (NASDAQ:NMTR – Get Rating) and Iterum Therapeutics (NASDAQ:ITRM – Get Rating) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
Institutional & Insider Ownership
2.6% of Iterum Therapeutics shares are held by institutional investors. 2.4% of 9 Meters Biopharma shares are held by company insiders. Comparatively, 4.2% of Iterum Therapeutics shares are held 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 and Volatility
9 Meters Biopharma has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Iterum Therapeutics has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
9 Meters Biopharma | 0 | 3 | 3 | 0 | 2.50 |
Iterum Therapeutics | 0 | 1 | 0 | 0 | 2.00 |
9 Meters Biopharma currently has a consensus price target of $20.85, suggesting a potential upside of 2,506.25%. Given 9 Meters Biopharma’s stronger consensus rating and higher probable upside, analysts clearly believe 9 Meters Biopharma is more favorable than Iterum Therapeutics.
Valuation and Earnings
This table compares 9 Meters Biopharma and Iterum Therapeutics’ gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
9 Meters Biopharma | N/A | N/A | -$43.77 million | ($3.46) | -0.23 |
Iterum Therapeutics | N/A | N/A | -$44.43 million | ($4.17) | -0.27 |
Iterum Therapeutics is trading at a lower price-to-earnings ratio than 9 Meters Biopharma, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares 9 Meters Biopharma and Iterum Therapeutics’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
9 Meters Biopharma | N/A | -584.97% | -159.45% |
Iterum Therapeutics | N/A | -84.11% | -37.99% |
Summary
9 Meters Biopharma beats Iterum Therapeutics on 6 of the 11 factors compared between the two stocks.
About 9 Meters Biopharma
9 Meters Biopharma, Inc. is a clinical-stage biopharmaceutical company, which focuses on unmet needs in gastroenterology. Its pipeline includes drug candidates for short bowel syndrome (SBS), celiac disease, and three early-stage candidates for undisclosed rare diseases and/or unmet needs. The company is founded by Jay P. Madan and Kendyle Woodard in 2012 and is headquartered in Raleigh, NC.
About Iterum Therapeutics
Iterum Therapeutics Plc operates as a pharmaceutical company, which engages in the development and commercialization of sulopenem. The company was founded by Corey N. Fishman on June 24, 2015 and is headquartered in Dublin, Ireland.
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