Reviewing Pulmatrix (NASDAQ:PULM) and Vanda Pharmaceuticals (NASDAQ:VNDA)

Pulmatrix (NASDAQ:PULMGet Free Report) and Vanda Pharmaceuticals (NASDAQ:VNDAGet Free Report) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Institutional & Insider Ownership

11.8% of Pulmatrix shares are held by institutional investors. Comparatively, 88.1% of Vanda Pharmaceuticals shares are held by institutional investors. 0.6% of Pulmatrix shares are held by company insiders. Comparatively, 8.9% of Vanda Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Pulmatrix has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Vanda Pharmaceuticals has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Pulmatrix and Vanda Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pulmatrix 0 0 0 0 0.00
Vanda Pharmaceuticals 0 0 1 1 3.50

Vanda Pharmaceuticals has a consensus price target of $16.50, suggesting a potential upside of 254.08%. Given Vanda Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Vanda Pharmaceuticals is more favorable than Pulmatrix.

Earnings and Valuation

This table compares Pulmatrix and Vanda Pharmaceuticals”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pulmatrix $1.92 million 11.53 -$6.94 million ($3.34) -1.82
Vanda Pharmaceuticals $198.77 million 1.38 -$18.90 million ($0.75) -6.21

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

Profitability

This table compares Pulmatrix and Vanda Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pulmatrix -122.46% -94.97% -84.57%
Vanda Pharmaceuticals -21.98% -8.30% -6.85%

Summary

Vanda Pharmaceuticals beats Pulmatrix on 11 of the 15 factors compared between the two stocks.

About Pulmatrix

(Get Free Report)

Pulmatrix, Inc., a clinical stage biotechnology company, focused on development of novel inhaled therapeutic products to prevent and treat respiratory and other diseases with unmet medical needs in the United States. The company offers iSPERSE, an engineered dry powder delivery platform, which enables delivery of small or large molecule drugs to the lungs by inhalation for local or systemic applications. It engages in developing PUR1800, a narrow spectrum kinase inhibitor completed Phase 1b clinical trials for the treatment of acute exacerbations in chronic obstructive pulmonary disease; PUR1900 for the treatment of allergic bronchopulmonary aspergillosis in patients with asthma and cystic fibrosis; and PUR3100, an iSPERSE formulation of dihydroergotamine which is in Phase 1 for the treatment of acute migraine. It has a license agreement with RespiVert Ltd. for access to a portfolio of kinase inhibitor drug candidates. The company was founded in 2003 and is headquartered in Bedford, Massachusetts.

About Vanda Pharmaceuticals

(Get Free Report)

Vanda Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of therapies to address high unmet medical needs worldwide. The company’s marketed products include HETLIOZ to treat non-24-hour sleep-wake disorders; and Fanapt oral tablets for the treatment of schizophrenia. Its pipeline products include HETLIOZ (tasimelteon) to treat jet lag disorder, insomnia, delayed sleep phase disorder, sleep disturbances in autism spectrum disorder, and pediatric Non-24; Fanapt (iloperidone) for the treatment of bipolar I disorder and Parkinson’s disease psychosis, as well as a long acting injectable (LAI) formulation to treat schizophrenia; and Tradipitant (VLY-686), a small molecule neurokinin-1 receptor (NK-1R) antagonist to treat gastroparesis, motion sickness, atopic dermatitis, and COVID-19 pneumonia. The company’s pipeline products also include VTR-297, a small molecule histone deacetylase inhibitor to treat hematologic malignancies and with potential use as a treatment for various oncology indications; VQW-765, a small molecule nicotinic acetylcholine receptor partial agonist to treat performance anxiety and psychiatric disorders; VHX-896, an active metabolite of iloperidone; and antisense oligonucleotide molecules. In addition, it offers a portfolio of cystic fibrosis transmembrane conductance regulator activators and inhibitors that include VSJ-110 for the treatment of dry eye and ocular inflammation; and VPO-227 for the treatment of secretory diarrhea disorders comprising cholera. Vanda Pharmaceuticals Inc. was incorporated in 2002 and is headquartered in Washington, the District of Columbia.

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