Critical Review: Oyster Point Pharma (NASDAQ:OYST) versus Achilles Therapeutics (NASDAQ:ACHL)

Oyster Point Pharma (NASDAQ:OYSTGet Rating) and Achilles Therapeutics (NASDAQ:ACHLGet Rating) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Oyster Point Pharma and Achilles Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oyster Point Pharma 0 1 0 0 2.00
Achilles Therapeutics 0 0 2 0 3.00

Oyster Point Pharma presently has a consensus price target of $23.00, suggesting a potential upside of 476.44%. Achilles Therapeutics has a consensus price target of $17.00, suggesting a potential upside of 574.60%. Given Achilles Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Achilles Therapeutics is more favorable than Oyster Point Pharma.

Profitability

This table compares Oyster Point Pharma and Achilles Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oyster Point Pharma N/A -116.58% -68.61%
Achilles Therapeutics N/A -21.83% -20.01%

Insider and Institutional Ownership

86.3% of Oyster Point Pharma shares are owned by institutional investors. Comparatively, 67.6% of Achilles Therapeutics shares are owned by institutional investors. 36.9% of Oyster Point Pharma shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Oyster Point Pharma and Achilles Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oyster Point Pharma $24.54 million 4.34 -$100.66 million ($4.94) -0.81
Achilles Therapeutics N/A N/A -$61.10 million ($1.69) -1.49

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

Risk and Volatility

Oyster Point Pharma has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Achilles Therapeutics has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.

Summary

Achilles Therapeutics beats Oyster Point Pharma on 7 of the 12 factors compared between the two stocks.

Oyster Point Pharma Company Profile (Get Rating)

Oyster Point Pharma, Inc., a commercial-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of pharmaceutical therapies to treat ophthalmic diseases in the United States. The company's product candidate is TYRVAYA, a nicotinic acetylcholine receptor agonist for the treatment of signs and symptoms of dry eye disease. It is also developing TYRVAYA that is in Phase II clinical trial for the treatment of for neurotrophic keratopathy. The company was incorporated in 2015 and is headquartered in Princeton, New Jersey.

Achilles Therapeutics Company Profile (Get Rating)

Achilles Therapeutics Plc, a clinical stage immuno-oncology biopharmaceutical company, develops precision T cell therapies to treat various solid tumors. The company's lead product candidates include CHIRON, which is in Phase I/IIa clinical trial for use in the treatment of advanced non-small cell lung cancer; and THETIS, a product candidate in Phase I/IIa clinical trial for use in the treatment of metastatic or recurrent melanoma. It is also developing products for use in the treatment of head and neck squamous cell carcinoma, renal cell carcinoma, triple negative breast cancer, and bladder cancer. The company was formerly known as Achilles TX Limited and changed its name to Achilles Therapeutics Plc in February 2021. The company was founded in 2016 and is headquartered in London, the United Kingdom.

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