Financial Review: Nabriva Therapeutics (NBRV) and Rhythm Pharmaceuticals (RYTM)

Nabriva Therapeutics (NASDAQ:NBRV) and Rhythm Pharmaceuticals (NASDAQ:RYTM) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Nabriva Therapeutics and Rhythm Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nabriva Therapeutics 0 0 7 0 3.00
Rhythm Pharmaceuticals 0 1 4 0 2.80

Nabriva Therapeutics currently has a consensus price target of $13.40, indicating a potential upside of 396.30%. Rhythm Pharmaceuticals has a consensus price target of $37.20, indicating a potential upside of 32.34%. Given Nabriva Therapeutics’ stronger consensus rating and higher probable upside, research analysts clearly believe Nabriva Therapeutics is more favorable than Rhythm Pharmaceuticals.

Profitability

This table compares Nabriva Therapeutics and Rhythm Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nabriva Therapeutics -642.38% -77.40% -66.91%
Rhythm Pharmaceuticals N/A -41.44% -34.27%

Valuation and Earnings

This table compares Nabriva Therapeutics and Rhythm Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nabriva Therapeutics $5.32 million 337.42 -$74.35 million ($2.49) -1.08
Rhythm Pharmaceuticals N/A N/A -$33.70 million ($2.83) -9.93

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

Insider & Institutional Ownership

52.5% of Nabriva Therapeutics shares are owned by institutional investors. Comparatively, 90.0% of Rhythm Pharmaceuticals shares are owned by institutional investors. 2.8% of Nabriva Therapeutics shares are owned by insiders. Comparatively, 4.9% of Rhythm Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Nabriva Therapeutics Company Profile

Nabriva Therapeutics plc, a clinical stage biopharmaceutical company, engages in the research and development of anti-infective agents to treat infections in humans. The company focuses on the pleuromutilin class of antibiotics. Its lead product candidate is lefamulin, which is in Phase III clinical trials in intravenous and oral formulations for the treatment of community-acquired bacterial pneumonia; and has completed Phase II clinical trials for the treatment of acute bacterial skin and skin structure infection. The company is also developing BC-7013, a semi-synthetic compound derived from pleuromutilin, which has completed a Phase 1 clinical trial for the treatment of Gram-positive infections, including uncomplicated skin and skin structure infections. In addition, it is developing lefamulin for use in the treatment of ventilator-associated bacterial pneumonia or hospital-acquired bacterial pneumonia and sexually transmitted infections. The company was formerly known as Nabriva Therapeutics Forschungs GmbH and changed its name to Nabriva Therapeutics plc in 2007. Nabriva Therapeutics plc was incorporated in 2005 and is headquartered in Dublin, Ireland.

Rhythm Pharmaceuticals Company Profile

Rhythm Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of peptide therapeutics for the treatment of rare genetic disorders of obesity in the United States. Its peptide candidates include Setmelanotide, a melanocortin-4 receptor agonist, which is in Phase III clinical trial to treat POMC and leptin receptor deficiency obesity; and Phase II clinical trial for Bardet-Biedl and Alström syndrome, POMC heterozygous deficiency obesity, and POMC epigenetic disorders. 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. Rhythm Pharmaceuticals, Inc. is a subsidiary of Motus Therapeutics, Inc.

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