Mirati Therapeutics (NASDAQ: MRTX) and Mateon Therapeutics (OTCMKTS:MATN) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Insider & Institutional Ownership

64.7% of Mirati Therapeutics shares are held by institutional investors. 5.1% of Mirati Therapeutics shares are held by insiders. Comparatively, 4.5% of Mateon Therapeutics 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.

Profitability

This table compares Mirati Therapeutics and Mateon Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mirati Therapeutics N/A -96.82% -82.29%
Mateon Therapeutics N/A -210.82% -175.67%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Mirati Therapeutics and Mateon Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mirati Therapeutics 0 1 7 0 2.88
Mateon Therapeutics 0 1 3 0 2.75

Mirati Therapeutics currently has a consensus target price of $13.71, indicating a potential downside of 14.82%. Mateon Therapeutics has a consensus target price of $1.75, indicating a potential upside of 741.35%. Given Mateon Therapeutics’ higher possible upside, analysts clearly believe Mateon Therapeutics is more favorable than Mirati Therapeutics.

Risk & Volatility

Mirati Therapeutics has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500. Comparatively, Mateon Therapeutics has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.

Earnings & Valuation

This table compares Mirati Therapeutics and Mateon Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mirati Therapeutics N/A N/A -$83.11 million ($3.11) -5.18
Mateon Therapeutics N/A N/A -$13.65 million ($0.56) -0.37

Mirati Therapeutics is trading at a lower price-to-earnings ratio than Mateon Therapeutics, indicating that it is currently the more affordable of the two stocks.

Summary

Mirati Therapeutics beats Mateon Therapeutics on 7 of the 10 factors compared between the two stocks.

About Mirati Therapeutics

Mirati Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops a pipeline of oncology products. The company’s clinical stage product candidates include glesatinib, an orally-bioavailable, potent, small molecule kinase inhibitor that is in Phase II clinical trials for the treatment of non-small cell lung cancer (NSCLC) patients with genetic alterations of MET; and in Phase Ib clinical trials in patients with genetic alterations of MET and Axl in NSCLC and other solid tumors. Its clinical stage product candidates also comprise sitravatinib, an orally-bioavailable, potent, small molecule spectrum-selective kinase inhibitor, which is in Phase II clinical trials for the treatment of solid tumors, such as NSCLC and metastatic Renal Cell Carcinoma, as well as in Phase Ib clinical trials to treat NSCLC patients with RET, CHR4q12, CBL, and AXL genetic alterations; and mocetinostat, an orally administered spectrum-selective Class 1 histone deacetylase inhibitor, which is in Phase Ib/II clinical trials in combination with durvalumab for the treatment of patients with NSCLC. The company has a collaboration agreement with Foundation Medicine, Inc. and Guardant Health, Inc. to explore development of their platforms as companion diagnostics for glesatinib. Mirati Therapeutics, Inc. is headquartered in San Diego, California.

About Mateon Therapeutics

Mateon Therapeutics, Inc., formerly OXiGENE, Inc., is a biopharmaceutical company. The Company is focused on the development of vascular disrupting agents (VDAs) for the treatment of cancer. The Company is engaged in developing two clinical stage investigational drugs: VDAs-CA4P and OXi4503. Its lead compound is CA4P, which is also known as combretastatin A4-phosphate, fosbretabulin tromethamine, fosbretabulin and ZYBRESTAT. VDAs selectively targets the vasculature of cancer tumors and obstructs a tumor’s blood supply without disrupting the blood supply to normal tissues. VDAs are in a class of drugs called vascular targeted therapies (VTTs), which also includes anti-angiogenic agents (AAs). CA4P is a reversible tubulin binding agent that selectively targets the endothelial cells that make up the blood vessel walls in solid tumors. The Company is pursuing the development of a product candidate, OXi4503, which is a dual-mechanism VDA.

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