Critical Survey: CTI BioPharma (NASDAQ:CTIC) and Onconova Therapeutics (NASDAQ:ONTX)

CTI BioPharma (NASDAQ:CTIC) and Onconova Therapeutics (NASDAQ:ONTX) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

This table compares CTI BioPharma and Onconova Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CTI BioPharma -177.54% -163.14% -63.90%
Onconova Therapeutics -876.56% -340.18% -108.03%

Analyst Ratings

This is a summary of recent recommendations for CTI BioPharma and Onconova Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CTI BioPharma 0 0 2 0 3.00
Onconova Therapeutics 0 0 3 0 3.00

CTI BioPharma currently has a consensus target price of $3.25, suggesting a potential upside of 175.42%. Onconova Therapeutics has a consensus target price of $1.28, suggesting a potential upside of 125.23%. Given CTI BioPharma’s higher probable upside, research analysts plainly believe CTI BioPharma is more favorable than Onconova Therapeutics.

Volatility & Risk

CTI BioPharma has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, Onconova Therapeutics has a beta of 2.14, indicating that its share price is 114% more volatile than the S&P 500.

Earnings and Valuation

This table compares CTI BioPharma and Onconova Therapeutics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CTI BioPharma $3.35 million 25.95 -$40.02 million N/A N/A
Onconova Therapeutics $2.18 million 43.80 -$21.50 million ($1.49) -0.38

Onconova Therapeutics has lower revenue, but higher earnings than CTI BioPharma.

Insider and Institutional Ownership

49.7% of CTI BioPharma shares are owned by institutional investors. Comparatively, 3.4% of Onconova Therapeutics shares are owned by institutional investors. 6.9% of CTI BioPharma shares are owned by insiders. Comparatively, 1.8% of Onconova Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

CTI BioPharma beats Onconova Therapeutics on 7 of the 12 factors compared between the two stocks.

About CTI BioPharma

CTI BioPharma Corp., a biopharmaceutical company, focuses on the acquisition, development, and commercialization of novel targeted therapies for blood-related cancers in the United States and internationally. It develops PIXUVRI, a novel aza-anthracenedione for the treatment of adult patients with multiply relapsed or refractory aggressive B-cell non-Hodgkin lymphoma; and pacritinib, an investigational oral kinase inhibitor with specificity for JAK2, FLT3, IRAK1, and CSF1R, which is in Phase III clinical trials for the treatment of adult patients with myelofibrosis. It has license and collaboration agreement with Teva Pharmaceutical Industries Ltd.; University of Vermont; S*BIO Pte Ltd.; and Vernalis (R&D) Limited. The company was formerly known as Cell Therapeutics, Inc. and changed its name to CTI BioPharma Corp. in May 2014. CTI BioPharma Corp. was founded in 1991 and is headquartered in Seattle, Washington.

About Onconova Therapeutics

Onconova Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing small molecule product candidates to treat cancer. Its product candidates include Rigosertib IV, which is in Phase III clinical trial for patients with higher risk myelodysplastic syndromes (MDS); Rigosertib oral in combination with azacitidine that is in Phase II clinical trial for patients with higher-risk MDS; and Rigosertib oral, which is in Phase II clinical trial for patients with lower risk MDS. The company also develops Briciclib, which is in Phase I multi-site dose-escalation trial for patients with advanced solid tumors; and Recilisib that has completed four Phase I clinical trials for patients with acute radiation syndromes. In addition, it has various product candidates in preclinical development that target kinases, cellular metabolism, or cell division. The company has a license agreement with SymBio Pharmaceuticals Limited; a development and license agreement with Baxter Healthcare SA; a license, development, and commercialization agreement with Pint International SA; and a license and collaboration agreement with HanX Biopharmaceuticals, Inc. Onconova Therapeutics, Inc. was founded in 1998 and is headquartered in Newtown, Pennsylvania.

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