Contrasting Aadi Bioscience (NASDAQ:AADI) and Sagimet Biosciences (NASDAQ:SGMT)

Sagimet Biosciences (NASDAQ:SGMT) and Aadi Bioscience (NASDAQ:AADI) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.

Valuation & Earnings

This table compares Sagimet Biosciences and Aadi Bioscience’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sagimet Biosciences	N/A	N/A	N/A	N/A	N/A
Aadi Bioscience	$15.22 million	8.41	-$60.51 million	($2.44)	-2.14

Sagimet Biosciences has higher earnings, but lower revenue than Aadi Bioscience.

Profitability

This table compares Sagimet Biosciences and Aadi Bioscience’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sagimet Biosciences	N/A	N/A	N/A
Aadi Bioscience	-285.87%	-40.72%	-35.18%

Institutional and Insider Ownership

58.3% of Aadi Bioscience shares are owned by institutional investors. 35.8% of Aadi Bioscience shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Sagimet Biosciences and Aadi Bioscience, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sagimet Biosciences	0	0	4	0	3.00
Aadi Bioscience	0	0	1	0	3.00

Sagimet Biosciences currently has a consensus price target of $43.33, indicating a potential upside of 249.18%. Aadi Bioscience has a consensus price target of $39.00, indicating a potential upside of 647.13%. Given Aadi Bioscience’s higher probable upside, analysts plainly believe Aadi Bioscience is more favorable than Sagimet Biosciences.

About Sagimet Biosciences

Sagimet Biosciences Inc., a clinical-stage biopharmaceutical company, develops therapeutics called fatty acid synthase (FASN) inhibitors for the treatment of diseases that result from dysfunctional lipid metabolism pathways. Its lead drug candidate is Denifanstat, a FASN inhibitor for the treatment of nonalcoholic steatohepatitis and acne. The company is also developing TVB-3567, a FASN inhibitor for the treatment of various types of cancers. The company was formerly known as 3-V Biosciences, Inc. and changed its name to Sagimet Biosciences Inc. in August 2019. Sagimet Biosciences Inc. was incorporated in 2006 and is headquartered in San Mateo, California.

About Aadi Bioscience

Aadi Bioscience, Inc., a clinical-stage biopharmaceutical company, engages in developing and commercializing precision therapies for genetically defined cancers with alterations in mTOR pathway genes. Its lead drug product candidate comprises FYARRO, a form of sirolimus bound to albumin. The company is also involved in evaluating FYARRO in cancers with known mTOR pathway activation, including tumor agnostic indications targeting specific genomic alterations that activate the mTOR pathway. Aadi Bioscience, Inc. was incorporated in 2007 and is headquartered in Pacific Palisades, California.