Critical Review: Galera Therapeutics (NASDAQ:GRTX) versus China Pharma (NYSE:CPHI)

Earnings and Valuation

This table compares China Pharma and Galera Therapeutics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Pharma	$4.05 million	1.59	-$3.08 million	($0.57)	-2.25
Galera Therapeutics	N/A	N/A	-$59.08 million	($0.10)	-0.23

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

Institutional and Insider Ownership

50.8% of Galera Therapeutics shares are owned by institutional investors. 6.4% of China Pharma shares are owned by company insiders. Comparatively, 12.9% of Galera Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

China Pharma has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Galera Therapeutics has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500.

Profitability

This table compares China Pharma and Galera Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Pharma	-85.56%	-63.93%	-31.42%
Galera Therapeutics	N/A	N/A	-99.34%

Summary

Galera Therapeutics beats China Pharma on 7 of the 10 factors compared between the two stocks.

About China Pharma

China Pharma Holdings, Inc. develops, manufactures, and markets generic and branded pharmaceutical, and biochemical products to hospitals and private retailers in the People’s Republic of China. The company provides products in the form of dry powder injectables, liquid injectables, tablets, capsules, and cephalosporin oral solutions. Its products include Cerebroprotein Hydroloysate injection to treat memory decline and attention deficit; Gastrodin injection for tiredness, loss of concentration, poor sleep, and traumatic syndromes of the brain; Propylgallate injection to treat cerebral thrombosis, coronary heart disease, and after surgery complications; Ozagrel Sodium to treat acute thrombotic cerebral infarction and dyskinesia; Alginic Sodium Diester injection for ischemic heart, cerebrovascular, and high lipoprotein blood diseases; Bumetanide injection to treat edema diseases; and Candesartan for hypertension. In addition, the company provides Roxithromycin dispersible tablets for pharyngitis and tonsillitis; Cefaclor dispersible tablets for tympanitis, lower respiratory tract infection, urinary tract infections, and skin/skin tissue infection; Cefalexin capsules for acute tonsillitis; Andrographolide for sore throat caused by upper respiratory tract infection; Clarithromycin granules and capsules; and Naproxen Sodium and PseudophedrineHydrochlorida sustained release tablets. Further it offers Hepatocyte growth-promoting factor, Tiopronin, Compound Ammonium Glycyrrhetate S, and Omeparzole for the treatment of digestive diseases. Additionally, the company provides Vitamin B6 injection; Granisetron Hydrochloride injection to treat nausea and vomiting caused by radiotherapy and chemotherapy during the treatment of malignant tumors; Noni Enzyme, a food supplement; sanitizers; and masks. It offers its products through distributors, its network of sales offices, and sales representatives. The company is based in Haikou, the People’s Republic of China.

About Galera Therapeutics

Galera Therapeutics, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics for the transformation of radiotherapy in cancer. The company's lead product candidate is avasopasem manganese (GC4419), a small molecule dismutase mimetic for the treatment of radiotherapy induced severe oral mucositis in patients with head and neck cancer (HNC); for the treatment of radiotherapy-induced esophagitis in patients with lung cancer; and for patients with HNC undergoing standard-of-care radiotherapy. It also develops rucosopasem manganese (rucosopasem) to augment the anti-cancer efficacy of stereotactic body radiation therapy in patients with non-small cell lung cancer and locally advanced pancreatic cancer. The company was incorporated in 2012 and is based in Malvern, Pennsylvania.