Viking Therapeutics (NASDAQ:VKTX – Get Free Report) and Capstone Therapeutics (NASDAQ:CAPS – Get Free Report) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.
Insider & Institutional Ownership
76.0% of Viking Therapeutics shares are held by institutional investors. Comparatively, 2.5% of Capstone Therapeutics shares are held by institutional investors. 5.3% of Viking Therapeutics shares are held by insiders. Comparatively, 39.3% of Capstone Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings for Viking Therapeutics and Capstone Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Viking Therapeutics | 1 | 3 | 8 | 2 | 2.79 |
| Capstone Therapeutics | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares Viking Therapeutics and Capstone Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Viking Therapeutics | N/A | -71.31% | -65.35% |
| Capstone Therapeutics | -41.26% | -114.15% | -39.74% |
Valuation and Earnings
This table compares Viking Therapeutics and Capstone Therapeutics”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Viking Therapeutics | N/A | N/A | -$359.64 million | ($4.14) | -8.96 |
| Capstone Therapeutics | $48.11 million | 0.08 | -$21.23 million | ($3.37) | -0.08 |
Capstone Therapeutics has higher revenue and earnings than Viking Therapeutics. Viking Therapeutics is trading at a lower price-to-earnings ratio than Capstone Therapeutics, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Viking Therapeutics has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Capstone Therapeutics has a beta of -1.51, meaning that its stock price is 251% less volatile than the S&P 500.
Summary
Viking Therapeutics beats Capstone Therapeutics on 8 of the 14 factors compared between the two stocks.
About Viking Therapeutics
Viking Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development of novel therapies for metabolic and endocrine disorders. The company's lead drug candidate is VK2809, an orally available tissue and receptor-subtype selective agonist of the thyroid hormone receptor beta (TRß), which is in Phase IIb clinical trials to treat patients with biopsy-confirmed non-alcoholic steatohepatitis, as well as NAFLD. It also develops VK5211, an orally available non-steroidal selective androgen receptor modulator that is in Phase II clinical trials for the treatment of patients recovering from non-elective hip fracture surgery; VK0612, an orally available Phase IIb-ready drug candidate for type 2 diabetes; VK2735, a novel dual agonist of the glucagon-like peptide, which is in Phase 1 SAD/MAD clinical trial, and VK0214, an orally available tissue and receptor-subtype selective agonist of the TRß for X-linked adrenoleukodystrophy. The company was incorporated in 2012 and is headquartered in San Diego, California.
About Capstone Therapeutics
Capstone Therapeutics Corp., a biotechnology company, develops novel peptides and other molecules for helping patients with under-served medical conditions in the United States. It develops Apo E mimetic peptide molecule AEM-28 and its analogs that have completed Phase Ia and Phase Ib/IIa clinical trials for lipoprotein metabolism. The company was formerly known as OrthoLogic Corp. and changed its name to Capstone Therapeutics Corp. in May 2010. Capstone Therapeutics Corp. was founded in 1987 and is headquartered in Tempe, Arizona.
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