Mirati Therapeutics (NASDAQ: MRTX) and Anavex Life Sciences (NASDAQ:AVXL) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Analyst Ratings

This is a summary of current recommendations and price targets for Mirati Therapeutics and Anavex Life Sciences, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mirati Therapeutics 0 1 7 0 2.88
Anavex Life Sciences 0 0 2 0 3.00

Mirati Therapeutics currently has a consensus target price of $13.71, suggesting a potential downside of 13.75%. Anavex Life Sciences has a consensus target price of $15.00, suggesting a potential upside of 316.67%. Given Anavex Life Sciences’ stronger consensus rating and higher possible upside, analysts plainly believe Anavex Life Sciences is more favorable than Mirati Therapeutics.

Volatility & Risk

Mirati Therapeutics has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, Anavex Life Sciences has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Insider & Institutional Ownership

64.7% of Mirati Therapeutics shares are held by institutional investors. Comparatively, 23.9% of Anavex Life Sciences shares are held by institutional investors. 5.1% of Mirati Therapeutics shares are held by insiders. Comparatively, 11.6% of Anavex Life Sciences 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.

Valuation & Earnings

This table compares Mirati Therapeutics and Anavex Life Sciences’ gross revenue, earnings per share (EPS) 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) -5.11
Anavex Life Sciences N/A N/A -$14.73 million ($0.39) -9.23

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

Profitability

This table compares Mirati Therapeutics and Anavex Life Sciences’ 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%
Anavex Life Sciences N/A -95.68% -84.88%

Summary

Anavex Life Sciences beats Mirati Therapeutics on 6 of the 10 factors compared between the two stocks.

Mirati Therapeutics Company Profile

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.

Anavex Life Sciences Company Profile

Anavex Life Sciences Corp., is a clinical-stage biopharmaceutical company engaged in the development of drug candidates. The Company’s lead compounds include ANAVEX 2-73, ANAVEX PLUS, a combination of ANAVEX 2-73 with donepezil (Aricept), ANAVEX 19-144, ANAVEX 1-41, ANAVEX 7-1037, ANAVEX 3-71, ANAVEX 1079, ANAVEX 1519 and ANAVEX 1066 being developed to treat Alzheimer’s disease and other central nervous system (CNS) diseases. The Company’s SIGMACEPTOR Discovery Platform produced small molecule drug candidates with unique modes of action. Sigma receptors may be targets for therapeutics to combat many human diseases, including Alzheimer’s disease. When bound by the appropriate ligands, sigma receptors influence the functioning of multiple biochemical signals that are involved in the pathogenesis (origin or development) of disease.

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