Critical Review: Can-Fite BioPharma (NYSE:CANF) and eFFECTOR Therapeutics (NASDAQ:EFTR)

eFFECTOR Therapeutics (NASDAQ:EFTR) and Can-Fite BioPharma (NYSE:CANF) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.

Valuation and Earnings

This table compares eFFECTOR Therapeutics and Can-Fite BioPharma”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eFFECTOR Therapeutics	N/A	N/A	-$35.81 million	($13.08)	0.00
Can-Fite BioPharma	$674,000.00	5.36	-$7.63 million	($1.79)	-0.57

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

Profitability

This table compares eFFECTOR Therapeutics and Can-Fite BioPharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
eFFECTOR Therapeutics	N/A	N/A	N/A
Can-Fite BioPharma	N/A	N/A	N/A

Institutional & Insider Ownership

57.7% of eFFECTOR Therapeutics shares are held by institutional investors. Comparatively, 21.0% of Can-Fite BioPharma shares are held by institutional investors. 4.7% of eFFECTOR Therapeutics shares are held by company insiders. Comparatively, 0.8% of Can-Fite BioPharma shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

eFFECTOR Therapeutics has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Can-Fite BioPharma has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for eFFECTOR Therapeutics and Can-Fite BioPharma, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eFFECTOR Therapeutics	0	0	0	0	0.00
Can-Fite BioPharma	0	0	2	1	3.33

Can-Fite BioPharma has a consensus target price of $14.00, indicating a potential upside of 1,272.55%. Given Can-Fite BioPharma’s stronger consensus rating and higher possible upside, analysts clearly believe Can-Fite BioPharma is more favorable than eFFECTOR Therapeutics.

Summary

Can-Fite BioPharma beats eFFECTOR Therapeutics on 8 of the 11 factors compared between the two stocks.

About eFFECTOR Therapeutics

eFFECTOR Therapeutics, Inc., a biopharmaceutical company, engages in the development of selective translation regulator inhibitors (STRIs) for the treatment of cancer. The company's lead product candidates comprise Tomivosertib, an oral small-molecule inhibitor of MNK that is in phase 2b clinical trial for the treatment of patients with metastatic non-small cell lung cancer; and Zotatifin, a small molecule inhibitor of eukaryotic initiation factor 4A (eIF4E), which is in Phase 1/2 clinical trial to treat patients with solid tumors, as well as completed Phase 2a open-label expansion cohort in combination with fulvestrant and abemaciclib to treat patients with ER+ breast cancer. The company has a research collaboration and license agreement with Pfizer Inc. to research and develop small molecules that target eIF4E. eFFECTOR Therapeutics, Inc. was incorporated in 2012 and is headquartered in Solana Beach, California.

About Can-Fite BioPharma

Can-Fite BioPharma Ltd., a clinical-stage biopharmaceutical company, develops small molecule therapeutic products for the treatment of cancer, liver inflammatory diseases, and erectile dysfunction. The company's lead drug candidate Piclidenoson, which has been completed Phase III clinical trial for the treatment of psoriasis; and Phase II clinical trial for the treatment of COVID-19. It also develops Namodenoson that is in Phase III clinical trial for the treatment of hepatocellular carcinoma, as well as in Phase IIb trial for the treatment of non-alcoholic steatohepatitis; and CF602, which is in pre-clinical trial for the treatment of erectile dysfunction. In addition, the company develops commercial predictive biomarker blood test kit for A3AR. Can-Fite BioPharma Ltd. has license and collaboration agreement with CMS Medical to develop, manufacture, and commercialize Piclidenoson and Namodenoson; and collaboration agreement with Univo Pharmaceuticals to identify and co-develop specific formulations of cannabis components for the treatment of cancer, inflammatory, autoimmune, and metabolic diseases. The company was formerly known as Can-Fite Technologies Ltd. and changed its name to Can-Fite BioPharma Ltd. in January 2001. Can-Fite BioPharma Ltd. was incorporated in 1994 and is headquartered in Petah Tikva, Israel.