Contrasting Diffusion Pharmaceuticals (NASDAQ:DFFN) & Cyclerion Therapeutics (NASDAQ:CYCN)

Diffusion Pharmaceuticals (NASDAQ:DFFNGet Rating) and Cyclerion Therapeutics (NASDAQ:CYCNGet Rating) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Risk and Volatility

Diffusion Pharmaceuticals has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500. Comparatively, Cyclerion Therapeutics has a beta of 1.94, meaning that its stock price is 94% more volatile than the S&P 500.

Institutional and Insider Ownership

54.5% of Cyclerion Therapeutics shares are owned by institutional investors. 1.8% of Diffusion Pharmaceuticals shares are owned by company insiders. Comparatively, 9.2% of Cyclerion Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Diffusion Pharmaceuticals and Cyclerion Therapeutics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Diffusion Pharmaceuticals N/A N/A -$24.10 million ($13.00) -0.55
Cyclerion Therapeutics $3.94 million 6.61 -$51.65 million ($1.25) -0.48

Diffusion Pharmaceuticals has higher earnings, but lower revenue than Cyclerion Therapeutics. Diffusion Pharmaceuticals is trading at a lower price-to-earnings ratio than Cyclerion Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Diffusion Pharmaceuticals and Cyclerion Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diffusion Pharmaceuticals N/A -54.50% -51.36%
Cyclerion Therapeutics -1,115.53% -99.04% -82.18%

Analyst Recommendations

This is a summary of recent ratings and target prices for Diffusion Pharmaceuticals and Cyclerion Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diffusion Pharmaceuticals 0 1 0 0 2.00
Cyclerion Therapeutics 0 0 2 0 3.00

Cyclerion Therapeutics has a consensus target price of $10.50, indicating a potential upside of 1,650.00%. Given Cyclerion Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Cyclerion Therapeutics is more favorable than Diffusion Pharmaceuticals.

Summary

Cyclerion Therapeutics beats Diffusion Pharmaceuticals on 8 of the 12 factors compared between the two stocks.

About Diffusion Pharmaceuticals (Get Rating)

Diffusion Pharmaceuticals Inc., a biopharmaceutical company, develops novel therapies that enhance the body's ability to deliver oxygen. Its lead product candidate is Trans Sodium Crocetinate that is developed to enhance the diffusion of oxygen to tissues, as well as to treat COVID-19 disease. Diffusion Pharmaceuticals Inc. was founded in 2001 and is based in Charlottesville, Virginia.

About Cyclerion Therapeutics (Get Rating)

Cyclerion Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in the discovering, development, and commercialization of medicines for serious central nervous system (CNS) diseases. Its lead product candidate is CY6463, a CNS-penetrant, soluble guanylate cyclase (sGC) stimulator that is in Phase IIa trials for the treatment of mitochondrial encephalomyopathy, lactic acidosis, and stroke-like episodes, as well as Alzheimer's disease with vascular pathology; and Phase 1 trials diagnosed with schizophrenia in adults. It is also developing Praliciguat, an orally administered systemic sGC stimulator, which is in Phase II studies to treat resistant hypertension and diabetic nephropathy; Olinciguat, an orally administered vascular sGC stimulator that is in Phase II studies for the sickle cell disease; and CY3018 for the treatment of disorders of the CNS. It has license agreement with Akebia Therapeutics, Inc. for the development, manufacture, medical affairs, and commercialization of pharmaceutical products, including pharmaceutical compound, and other related products and forms. The company was incorporated in 2018 and is headquartered in Cambridge, Massachusetts.

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