Financial Contrast: ProPhase Labs (NASDAQ:PRPH) versus Gain Therapeutics (NASDAQ:GANX)

Gain Therapeutics (NASDAQ:GANX) and ProPhase Labs (NASDAQ:PRPH) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Gain Therapeutics and ProPhase Labs, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gain Therapeutics	1	0	7	0	2.75
ProPhase Labs	1	0	0	0	1.00

Gain Therapeutics currently has a consensus price target of $7.86, suggesting a potential upside of 327.02%. Given Gain Therapeutics’ stronger consensus rating and higher probable upside, research analysts plainly believe Gain Therapeutics is more favorable than ProPhase Labs.

Profitability

This table compares Gain Therapeutics and ProPhase Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gain Therapeutics	N/A	-289.10%	-155.11%
ProPhase Labs	N/A	-262.42%	-76.48%

Earnings & Valuation

This table compares Gain Therapeutics and ProPhase Labs”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gain Therapeutics	N/A	N/A	-$20.41 million	($0.63)	-2.92
ProPhase Labs	$5.59 million	2.42	-$53.36 million	($0.58)	-0.56

Gain Therapeutics has higher earnings, but lower revenue than ProPhase Labs. Gain Therapeutics is trading at a lower price-to-earnings ratio than ProPhase Labs, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Gain Therapeutics has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500. Comparatively, ProPhase Labs has a beta of -0.62, meaning that its stock price is 162% less volatile than the S&P 500.

Insider and Institutional Ownership

12.0% of Gain Therapeutics shares are held by institutional investors. Comparatively, 9.4% of ProPhase Labs shares are held by institutional investors. 7.2% of Gain Therapeutics shares are held by company insiders. Comparatively, 9.6% of ProPhase Labs 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.

About Gain Therapeutics

Gain Therapeutics, Inc., a biotechnology company, develops novel small molecule therapeutics to treat diseases across various therapeutic areas. Its drug discovery platform Magellan discovers novel allosteric binding sites in a disease; identifies proprietary small molecules that bind these sites to modulate protein function; and treats the underlying cause of the disease. The company's lead drug candidate, GT-02287 for the treatment of GBA1 Parkinson's disease is being evaluated in a Phase I clinical trials. It also has various small molecule drug candidates, which are in the discovery, research, and preclinical stages for the treatment of Dementia with Lewy Bodies, Alzhiemer's Disease, Gaucher, GM1 Gangliosidosis, Krabbe Disease, Alpha1-Antitrypsun deficiency, and solid tumors. Gain Therapeutics, Inc. was founded in 2017 and is headquartered in Bethesda, Maryland.

About ProPhase Labs

ProPhase Labs, Inc. develops and commercializes novel drugs, dietary supplements, and compounds in the United States. It operates through two segments: Diagnostic Services and Consumer Products. The company provides a range of TK supplements, including Legendz XL for male sexual health; and Triple Edge XL, an energy and stamina booster. It offers contract manufacturing services, such as product development, pre-commercialization, production, warehousing, and distribution; COVID-19 diagnostic information services to a range of customers, including health plans, third party payers, and government organizations; and respiratory pathogen panel molecular testing services, as well as personal genomics products and services. In addition, the company involved in the research, development, manufacture, distribution, marketing, and sale of over the counter (OTC) consumer healthcare products and dietary supplements; and retail operations. The company was formerly known as The Quigley Corporation. ProPhase Labs, Inc. was founded in 1989 and is headquartered in Garden City, New York.