Rhythm Pharmaceuticals (NASDAQ:RYTM) and Belite Bio (NASDAQ:BLTE) Financial Survey

Rhythm Pharmaceuticals (NASDAQ:RYTM) and Belite Bio (NASDAQ:BLTE) are both mid-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Valuation & Earnings

This table compares Rhythm Pharmaceuticals and Belite Bio”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rhythm Pharmaceuticals	$130.13 million	53.14	-$260.60 million	($3.10)	-33.42
Belite Bio	N/A	N/A	-$36.14 million	($1.92)	-97.84

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

Analyst Ratings

This is a summary of current ratings for Rhythm Pharmaceuticals and Belite Bio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rhythm Pharmaceuticals	2	1	14	1	2.78
Belite Bio	1	1	6	0	2.63

Rhythm Pharmaceuticals presently has a consensus price target of $131.29, indicating a potential upside of 26.71%. Belite Bio has a consensus price target of $179.75, indicating a potential downside of 4.32%. Given Rhythm Pharmaceuticals’ stronger consensus rating and higher possible upside, equities analysts clearly believe Rhythm Pharmaceuticals is more favorable than Belite Bio.

Risk & Volatility

Rhythm Pharmaceuticals has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500. Comparatively, Belite Bio has a beta of -1.46, suggesting that its share price is 246% less volatile than the S&P 500.

Profitability

This table compares Rhythm Pharmaceuticals and Belite Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rhythm Pharmaceuticals	-110.32%	-433.21%	-46.38%
Belite Bio	N/A	-34.28%	-33.05%

Institutional & Insider Ownership

0.5% of Belite Bio shares are held by institutional investors. 6.1% of Rhythm Pharmaceuticals shares are held by company insiders. Comparatively, 13.3% of Belite Bio shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

About Rhythm Pharmaceuticals

Rhythm Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the rare neuroendocrine diseases. The company's lead product candidate is IMCIVREE (setmelanotide), a rare melanocortin-4 receptor for the treatment of pro-opiomelanocortin (POMC), proprotein convertase subtilisin/kexin type 1, leptin receptor (LEPR) deficiency obesity, and Bardet-Biedl and Alström syndrome. It is in Phase 3 clinical trials for treating POMC or LEPR heterozygous deficiency obesities, steroid receptor coactivator 1 deficiency obesity, SH2B1 deficiency obesity, MC4 receptor deficiency obesity, and other MC4R disorders. The company has licensing agreements with LG Chem, Ltd; Ipsen Pharma S.A.S; Camurus; RareStone Group Ltd.; and LG Chem, Ltd. The company was formerly known as Rhythm Metabolic, Inc. and changed its name to Rhythm Pharmaceuticals, Inc. in October 2015. Rhythm Pharmaceuticals, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.

About Belite Bio

Belite Bio, Inc, a clinical stage biopharmaceutical drug development company, engages in the research and development of novel therapeutics targeting retinal degenerative eye diseases with unmet medical needs in the United States. The company’s lead product candidate is LBS-008 (Tinlarebant), an orally administered once-a-day tablet for maintaining the health and integrity of retinal tissues in autosomal recessive Stargardt disease and geographic atrophy patients. It is also developing LBS-009, an anti-retinol binding protein 4 oral therapy that is in the preclinical development phase targeting liver disease, including non-alcoholic fatty liver disease, nonalcoholic steatohepatitis, and type 2 diabetes. Belite Bio, Inc was founded in 2016 and is based in San Diego, California. Belite Bio, Inc is a subsidiary of Lin Bioscience International Ltd.