Analyzing Applied Therapeutics (NASDAQ:APLT) and Paratek Pharmaceuticals (NASDAQ:PRTK)

Applied Therapeutics (NASDAQ:APLTGet Rating) and Paratek Pharmaceuticals (NASDAQ:PRTKGet Rating) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Insider and Institutional Ownership

95.5% of Applied Therapeutics shares are owned by institutional investors. Comparatively, 59.5% of Paratek Pharmaceuticals shares are owned by institutional investors. 27.2% of Applied Therapeutics shares are owned by company insiders. Comparatively, 5.1% of Paratek Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Applied Therapeutics and Paratek Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Applied Therapeutics N/A N/A -$105.58 million ($4.12) -0.45
Paratek Pharmaceuticals $130.16 million 0.87 -$59.08 million ($1.16) -1.79

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

Volatility and Risk

Applied Therapeutics has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Paratek Pharmaceuticals has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500.

Profitability

This table compares Applied Therapeutics and Paratek Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Applied Therapeutics N/A -106.41% -84.19%
Paratek Pharmaceuticals -42.31% N/A -32.77%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Applied Therapeutics and Paratek Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Applied Therapeutics 1 1 2 0 2.25
Paratek Pharmaceuticals 0 0 1 1 3.50

Applied Therapeutics presently has a consensus target price of $14.10, suggesting a potential upside of 662.16%. Paratek Pharmaceuticals has a consensus target price of $15.50, suggesting a potential upside of 645.19%. Given Applied Therapeutics’ higher possible upside, equities research analysts clearly believe Applied Therapeutics is more favorable than Paratek Pharmaceuticals.

Summary

Paratek Pharmaceuticals beats Applied Therapeutics on 8 of the 13 factors compared between the two stocks.

Applied Therapeutics Company Profile (Get Rating)

Applied Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops novel products to target cardiovascular disease, galactosemia, and diabetic complications. Its lead product candidate is AT-007 that has completed phase 1/2 for the treatment of galactosemia in healthy volunteers and adults, as well as is in pediatric clinical study for the treatment of galactosemia in kids; for treating sorbitol dehydrogenase deficiency; and for the treatment of phosphomannomutase enzyme-CDG. The company also develops AT-001 that is in phase III clinical trials for treating diabetic cardiomyopathy, as well as for the treatment of diabetic peripheral neuropathy. Its preclinical stage products include AT-003 for the treatment diabetic retinopathy; AT-104, a PI3K inhibitor for treating orphan hematological oncology T Cell Acute Lymphoblastic Leukemia. Applied Therapeutics, Inc. was incorporated in 2016 and is headquartered in New York, New York.

Paratek Pharmaceuticals Company Profile (Get Rating)

Paratek Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the development and commercialization of life-saving therapies for life-threatening diseases or other public health threats for civilian, government, and military use. Its lead product candidates include NUZYRA, a once-daily oral and intravenous broad-spectrum antibiotic for the treatment of adult patients with community-acquired bacterial pneumonia and acute bacterial skin and skin structure infections caused by susceptible pathogens; and SEYSARA, a tetracycline designed for the treatment of moderate to severe acne vulgaris. The company has license and collaboration agreements with Zai Lab (Shanghai) Co., Ltd. and Allergan plc; license agreement with Tufts University to develop and commercialize products for the treatment or prevention of bacterial or microbial diseases, or medical conditions; and contract with Biomedical Advanced Research and Development Authority to support the development of NUZYRA for the treatment of pulmonary anthrax. In addition, it has license agreement with Tetraphase Pharmaceuticals, Inc. to develop, import, and sell the XERAVATM product, which is used for the treatment of complicated intra-abdominal infections caused by bacteria. Paratek Pharmaceuticals, Inc. was founded in 1996 and is headquartered in Boston, Massachusetts.

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