Analyzing Syndax Pharmaceuticals (NASDAQ:SNDX) and Biofrontera (NASDAQ:BFRI)

Syndax Pharmaceuticals (NASDAQ:SNDX) and Biofrontera (NASDAQ:BFRI) 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

10.1% of Biofrontera shares are owned by institutional investors. 4.1% of Syndax Pharmaceuticals shares are owned by company insiders. Comparatively, 0.2% of Biofrontera 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.

Earnings and Valuation

This table compares Syndax Pharmaceuticals and Biofrontera’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Syndax Pharmaceuticals	$139.71 million	12.61	-$209.36 million	($2.96)	-7.01
Biofrontera	$34.07 million	0.26	-$20.13 million	($15.82)	-0.11

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

Volatility and Risk

Syndax Pharmaceuticals has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Biofrontera has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Profitability

This table compares Syndax Pharmaceuticals and Biofrontera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Syndax Pharmaceuticals	N/A	-47.88%	-44.00%
Biofrontera	-59.09%	-344.98%	-72.85%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Syndax Pharmaceuticals and Biofrontera, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Syndax Pharmaceuticals	0	1	9	0	2.90
Biofrontera	0	0	1	0	3.00

Syndax Pharmaceuticals presently has a consensus target price of $34.42, suggesting a potential upside of 65.94%. Biofrontera has a consensus target price of $18.00, suggesting a potential upside of 952.63%. Given Biofrontera’s stronger consensus rating and higher possible upside, analysts clearly believe Biofrontera is more favorable than Syndax Pharmaceuticals.

Summary

Syndax Pharmaceuticals beats Biofrontera on 9 of the 14 factors compared between the two stocks.

About Syndax Pharmaceuticals

Syndax Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops therapies for the treatment of cancer. Its lead product candidates are revumenib, a potent, selective, small molecule inhibitor of the menin-MLL binding interaction for the treatment of KMT2A rearranged, acute leukemias, and solid tumor; and SNDX-6352 or axatilimab, a monoclonal antibody that blocks the colony stimulating factor 1, or CSF-1 receptor for the treatment of patients with chronic graft versus host disease (cGVHD) and idiopathic pulmonary fibrosis (IPF). The company is also developing Entinostat. It has an agreement with Eddingpharm International Company Limited for licensing, development, and commercialization of Entinostat. Syndax Pharmaceuticals, Inc. was incorporated in 2005 and is headquartered in Waltham, Massachusetts.

About Biofrontera

Biofrontera Inc., a biopharmaceutical company, engages in the commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's products are used for the treatment of actinic keratoses, which are pre-cancerous skin lesions, as well as impetigo, a bacterial skin infection. It offers Ameluz, a prescription drug for use in combination with the RhodoLED lamp series, for photodynamic therapy for the lesion-directed and field-directed treatment of actinic keratosis of mild-to-moderate severity on the face and scalp. The company also provides Xepi, a topical non-fluorinated quinolone that inhibits bacterial growth for the treatment of impetigo. The company was incorporated in 2015 and is headquartered in Woburn, Massachusetts.