Aldeyra Therapeutics (NASDAQ:ALDX – Get Free Report) and Nektar Therapeutics (NASDAQ:NKTR – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.
Institutional and Insider Ownership
59.7% of Aldeyra Therapeutics shares are owned by institutional investors. Comparatively, 75.9% of Nektar Therapeutics shares are owned by institutional investors. 8.5% of Aldeyra Therapeutics shares are owned by company insiders. Comparatively, 3.7% of Nektar Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings for Aldeyra Therapeutics and Nektar Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aldeyra Therapeutics | 0 | 0 | 3 | 0 | 3.00 |
| Nektar Therapeutics | 0 | 1 | 6 | 1 | 3.00 |
Earnings and Valuation
This table compares Aldeyra Therapeutics and Nektar Therapeutics”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aldeyra Therapeutics | N/A | N/A | -$37.54 million | ($0.94) | -2.33 |
| Nektar Therapeutics | $98.43 million | 1.20 | -$276.06 million | ($0.59) | -1.08 |
Aldeyra Therapeutics has higher earnings, but lower revenue than Nektar Therapeutics. Aldeyra Therapeutics is trading at a lower price-to-earnings ratio than Nektar Therapeutics, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Aldeyra Therapeutics has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Nektar Therapeutics has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.
Profitability
This table compares Aldeyra Therapeutics and Nektar Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aldeyra Therapeutics | N/A | -43.01% | -33.62% |
| Nektar Therapeutics | -180.70% | -173.28% | -46.31% |
Summary
Nektar Therapeutics beats Aldeyra Therapeutics on 7 of the 13 factors compared between the two stocks.
About Aldeyra Therapeutics
Aldeyra Therapeutics is a clinical-stage biotechnology company focused on the development of novel therapies with the potential to improve the lives of patients with immune-mediated diseases. Two of the company’s lead compounds, reproxalap and ADX-629, target reactive aldehyde species (RASP), which are elevated in ocular and systemic inflammatory disease, leading to elevated levels of cytokine release via activation of a broad array of inflammatory factors, including NF-κB, inflammasomes, and Scavenger Receptor A. Reproxalap is being evaluated in Phase 3 clinical trials in patients with dry eye disease and allergic conjunctivitis. The company’s clinical pipeline also includes ADX-2191, a dihydrofolate reductase inhibitor in Phase 3 testing for proliferative vitreoretinopathy, and ADX-1612, a chaperome inhibitor in Phase 2 testing for COVID-19 and ovarian cancer.
About Nektar Therapeutics
Nektar Therapeutics, a biopharmaceutical company, focuses on discovering and developing medicines in the field of immunotherapy in the United States and internationally. The company is developing rezpegaldesleukin, a cytokine Treg stimulant that is in phase 2 clinical trial for the treatment of systemic lupus erythematosus and ulcerative colitis, as well as phase 2b clinical trial to treat atopic dermatitis and psoriasis; and NKTR-255, an IL-15 receptor agonist, which is in phase 1 clinical trial to boost the immune system's natural ability to fight cancer. It has collaboration agreements with Takeda Pharmaceutical Company Ltd.; AstraZeneca AB; UCB Pharma S.A.; F. Hoffmann-La Roche Ltd; Bausch Health Companies Inc.; Pfizer Inc.; Amgen Inc.; UCB Pharma (Biogen); Bristol-Myers Squibb Company; Merck KGaA; and SFJ Pharmaceuticals, Inc. The company was incorporated in 1990 and is headquartered in San Francisco, California.
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