Protara Therapeutics (NASDAQ:TARA – Get Free Report) and Fractyl Health (NASDAQ:GUTS – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Insider and Institutional Ownership
38.1% of Protara Therapeutics shares are held by institutional investors. 12.5% of Protara Therapeutics shares are held by insiders. Comparatively, 26.1% of Fractyl Health shares are held by 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.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Protara Therapeutics and Fractyl Health, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Protara Therapeutics | 1 | 0 | 5 | 1 | 2.86 |
| Fractyl Health | 1 | 1 | 3 | 0 | 2.40 |
Risk & Volatility
Protara Therapeutics has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Fractyl Health has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.
Valuation and Earnings
This table compares Protara Therapeutics and Fractyl Health”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Protara Therapeutics | N/A | N/A | -$57.44 million | ($1.32) | -3.95 |
| Fractyl Health | $90,000.00 | 807.00 | -$140.95 million | ($1.84) | -0.25 |
Protara Therapeutics has higher earnings, but lower revenue than Fractyl Health. Protara Therapeutics is trading at a lower price-to-earnings ratio than Fractyl Health, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Protara Therapeutics and Fractyl Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Protara Therapeutics | N/A | -36.38% | -33.81% |
| Fractyl Health | N/A | -2,896.77% | -104.24% |
Summary
Protara Therapeutics beats Fractyl Health on 8 of the 13 factors compared between the two stocks.
About Protara Therapeutics
Protara Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in advancing transformative therapies for the treatment of cancer and rare diseases. The company's lead program is TARA-002, an investigational cell therapy, which is in Phase II clinical trial for the treatment of non-muscle invasive bladder cancer and lymphatic malformations. It is also developing intravenous choline chloride, an investigational phospholipid substrate replacement therapy that is in Phase II clinical trial for patients receiving parenteral nutrition. The company is headquartered in New York, New York.
About Fractyl Health
Fractyl Health, Inc., a metabolic therapeutics company, develops therapies for the treatment of type 2 diabetes (T2D) and obesity. The company develops Revita DMR System (Revita), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high fat and high sugar diet, which can initiate T2D and obesity in humans. It also develops Rejuva, a novel adeno-associated virus delivered pancreatic gene therapy platform that is designed to enable long-term remission of T2D and obesity by durably altering metabolic hormone function in the pancreatic islet cells of patients. Fractyl Health, Inc. was formerly known as Fractyl Laboratories Inc. and changed its name to Fractyl Health, Inc. on June 09, 2021. The company was incorporated in 2010 and is headquartered in Burlington, Massachusetts.
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