Comparing Hoth Therapeutics (NASDAQ:HOTH) & Galapagos (NASDAQ:GLPG)

Hoth Therapeutics (NASDAQ:HOTH) and Galapagos (NASDAQ:GLPG) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Insider & Institutional Ownership

7.1% of Hoth Therapeutics shares are owned by institutional investors. Comparatively, 32.5% of Galapagos shares are owned by institutional investors. 6.9% of Hoth Therapeutics shares are owned by insiders. Comparatively, 2.9% of Galapagos shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Hoth Therapeutics and Galapagos, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hoth Therapeutics	1	0	2	0	2.33
Galapagos	6	1	1	1	1.67

Hoth Therapeutics presently has a consensus target price of $4.50, indicating a potential upside of 223.74%. Galapagos has a consensus target price of $30.00, indicating a potential downside of 4.28%. Given Hoth Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Hoth Therapeutics is more favorable than Galapagos.

Valuation & Earnings

This table compares Hoth Therapeutics and Galapagos”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hoth Therapeutics	N/A	N/A	-$8.19 million	($1.07)	-1.30
Galapagos	$298.31 million	N/A	$80.16 million	($1.57)	-19.96

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

Risk and Volatility

Hoth Therapeutics has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Galapagos has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.

Profitability

This table compares Hoth Therapeutics and Galapagos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hoth Therapeutics	N/A	-114.32%	-105.92%
Galapagos	N/A	N/A	N/A

Summary

Hoth Therapeutics beats Galapagos on 7 of the 13 factors compared between the two stocks.

About Hoth Therapeutics

Hoth Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing therapies for unmet medical needs. It is involved in the development of HT-001, a topical formulation, which is in Phase II clinical trial for the treatment of patients with rash and skin disorders associated with initial and repeat courses of tyrosine kinase epidermal growth factor receptor inhibitor therapy; HT-KIT to treat mast-cell derived cancers and anaphylaxis; HT-TBI to treat traumatic brain injury and ischemic stroke; HT-ALZ for the treatment and/or prevention of Alzheimer's or other neuroinflammatory diseases; HT-004 for treatment of asthma and allergies using inhalational administration; HT-003 for the treatment of acne and psoriasis, as well as inflammatory bowel diseases; and HT-002, a novel peptide for treating COVID-19. The company is also developing BioLexa Platform, a proprietary, patented, drug compound platform which is in Phase I clinical trial for the treatment of eczema; and HT-005 for treating patients with lupus, as well as a diagnostic device through a mobile device. The company has license agreements with the George Washington University; Isoprene Pharmaceuticals, Inc.; Virginia Commonwealth University; the North Carolina State University; Chelexa BioSciences, Inc. and the University of Cincinnati; Zylö Therapeutics, Inc.; and Voltron Therapeutics, Inc. It also has a research collaboration agreement with Weill Cornell Medicine to develop HT-003. Hoth Therapeutics, Inc. was incorporated in 2017 and is based in New York, New York.

About Galapagos

Galapagos NV, a biotechnology company, develops medicines focusing on oncology and immunology primarily in the United States and Europe. The company's pipeline products comprise GLPG3667 that has completed phase 1b trial; GLPG5101, a CD19 CAR-T product candidate manufactured at point-of-care, currently in Phase1/2 trial in relapsed/refractory non-hodgkin lymphoma; GLPG5201, a CD19 CAR-T product candidates manufactured at point-of-care, currently in phase 1/2 trial in replapsed/refractory chronic lymphocytic leukemia; and GLPG5301, a BCMA CAR-T product candidate manufactured at point-of-care, currently in phase 1/2 in relapsed/refractory multiple myeloma. The company has collaboration agreements with Gilead Sciences, Inc.; and AbbVie S.à r.l. Galapagos NV was incorporated in 1999 and is headquartered in Mechelen, Belgium.