Galmed Pharmaceuticals (NASDAQ: GLMD) and AVEO Pharmaceuticals (NASDAQ:AVEO) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.
Insider & Institutional Ownership
9.9% of Galmed Pharmaceuticals shares are held by institutional investors. Comparatively, 51.0% of AVEO Pharmaceuticals shares are held by institutional investors. 4.7% of AVEO Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Galmed Pharmaceuticals and AVEO Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Galmed Pharmaceuticals has a beta of 2.46, indicating that its share price is 146% more volatile than the S&P 500. Comparatively, AVEO Pharmaceuticals has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Galmed Pharmaceuticals and AVEO Pharmaceuticals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Galmed Pharmaceuticals presently has a consensus price target of $20.75, indicating a potential upside of 154.91%. AVEO Pharmaceuticals has a consensus price target of $4.17, indicating a potential upside of 57.83%. Given Galmed Pharmaceuticals’ higher possible upside, equities analysts plainly believe Galmed Pharmaceuticals is more favorable than AVEO Pharmaceuticals.
Valuation & Earnings
This table compares Galmed Pharmaceuticals and AVEO Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Galmed Pharmaceuticals||$470,000.00||220.47||-$16.95 million||($1.11)||-7.33|
|AVEO Pharmaceuticals||$2.52 million||123.95||-$26.88 million||($0.71)||-3.72|
Galmed Pharmaceuticals has higher earnings, but lower revenue than AVEO Pharmaceuticals. Galmed Pharmaceuticals is trading at a lower price-to-earnings ratio than AVEO Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
AVEO Pharmaceuticals beats Galmed Pharmaceuticals on 6 of the 11 factors compared between the two stocks.
About Galmed Pharmaceuticals
Galmed Pharmaceuticals Ltd. is a clinical-stage biopharmaceutical company. The Company focuses on the development and commercialization of once-daily, oral therapy for the treatment of liver diseases and cholesterol gallstones utilizing its synthetic fatty-acid/bile-acid conjugate (FABAC), called aramchol. Its product candidate, aramchol, is a disease modifying treatment for fatty liver disorders, including Non-Alcoholic Steato-hepatitis (NASH). The Company’s Aramchol is a conjugate of cholic acid and arachidic acid, which is a member of synthetic Fatty-Acid/Bile-Acid Conjugates (FABACs). FABACs are composed of endogenic compounds. Aramchol affects liver fat metabolism and has been shown in a Phase IIa clinical study to reduce liver fat content, as well as improve metabolic parameters associated with Nonalcoholic steatohepatitis (NASH). Aramchol is in Phase IIb clinical trials.
About AVEO Pharmaceuticals
AVEO Pharmaceuticals, Inc. is a biopharmaceutical company. The Company’s platform delivers insights into cancer and related disease. The Company’s product candidates include Tivozanib, Ficlatuzumab, AV-203 and AV-380. Tivozanib is a selective long half-life vascular endothelial growth factor tyrosine kinase inhibitor (VEGF TKI) that inhibits over three VEGF receptors. Tivozanib is designed to optimize VEGF blockade while minimizing off-target toxicities. Ficlatuzumab is a Hepatocyte Growth Factor (HGF) inhibitory antibody. AV-203 is an anti-ErbB3 monoclonal antibody with ErbB3 affinity. Its preclinical studies suggest that neuregulin1 (NRG1) levels predict AV-203 antitumor activity in preclinical models. AV-380 is a humanized Immunoglobulin G 1 (IgG1) inhibitory monoclonal antibody. AV-380 targets growth differentiating factor 15 (GDF15).
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