Melinta Therapeutics (NASDAQ: MLNT) and Athenex (NASDAQ:ATNX) are both small-cap healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Valuation and Earnings

This table compares Melinta Therapeutics and Athenex’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Melinta Therapeutics $18.02 million 20.33 -$117.96 million ($7.34) -2.27
Athenex N/A N/A N/A ($2.76) -6.05

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

Profitability

This table compares Melinta Therapeutics and Athenex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Melinta Therapeutics -500.05% -45.72% -35.83%
Athenex N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Melinta Therapeutics and Athenex, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Melinta Therapeutics 0 10 2 0 2.17
Athenex 0 1 4 0 2.80

Melinta Therapeutics currently has a consensus target price of $6.64, indicating a potential downside of 60.10%. Athenex has a consensus target price of $27.64, indicating a potential upside of 65.51%. Given Athenex’s stronger consensus rating and higher probable upside, analysts clearly believe Athenex is more favorable than Melinta Therapeutics.

Institutional & Insider Ownership

2.9% of Athenex shares are owned by institutional investors. 31.5% of Melinta Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Athenex beats Melinta Therapeutics on 8 of the 11 factors compared between the two stocks.

Melinta Therapeutics Company Profile

Melinta Therapeutics, Inc., formerly Cempra, Inc., is a clinical-stage pharmaceutical company. The Company focuses on developing differentiated antibiotics for the acute care and community settings to meet medical needs in the treatment of bacterial infectious diseases. Its product, solithromycin (CEM-101), which is a macrolide and fluoroketolide, is being developed in oral capsules, intravenous (IV) and suspension formulations for the treatment of community-acquired bacterial pneumonia (CABP). Solithromycin has therapeutic potential and activity to target pathogenic bacteria. It has completed two pivotal Phase III trials for solithromycin to treat CABP, as of December 31, 2016. Its Fusidic acid is an antibiotic and the Company is exploring its use for the long-term oral treatment for refractory bone and joint infections (BJI), including prosthetic joint infections, which are caused by staphylococci, including S. aureus, methicillin-resistant S. aureus and other gram-positive bacteria.

Athenex Company Profile

Athenex, Inc. is an oncology pharmaceutical company focused on the development and commercialization of therapies for cancer diseases and supportive therapies. The Company’s technology platform is organized into three categories, including Oral Absorption Platform, Src Kinase Inhibitors and Symptom Therapeutics. The Company offers Oraxol, an oral formulation of paclitaxel; Orateacan, an oral formulation of Irinotecan; Oradoxel, an oral formulation of Docetaxel, and an oral formulation of Topotecan for the treatment of various types of cancers. Its Src Kinase Inhibitors include KX-01 (KX2-391) and KX-02 (KX2-361) oncology drug candidates. The Company’s Symptom Therapeutics include CQ-01, which is used for the treatment of burn pruritus and scars; CQ-R1, which is used for the treatment of an irradiation-induced dermatitis, and an intranasal Granisetron used for the treatment of chemotherapy-induced nausea/vomiting.

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