Financial Review: NewAmsterdam Pharma (NASDAQ:NAMS) and Cyclerion Therapeutics (NASDAQ:CYCN)

Cyclerion Therapeutics (NASDAQ:CYCN) and NewAmsterdam Pharma (NASDAQ:NAMS) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Volatility & Risk

Cyclerion Therapeutics has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500. Comparatively, NewAmsterdam Pharma has a beta of -0.01, suggesting that its stock price is 101% less volatile than the S&P 500.

Profitability

This table compares Cyclerion Therapeutics and NewAmsterdam Pharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cyclerion Therapeutics	N/A	-55.32%	-48.35%
NewAmsterdam Pharma	N/A	N/A	N/A

Insider and Institutional Ownership

75.6% of Cyclerion Therapeutics shares are held by institutional investors. Comparatively, 89.9% of NewAmsterdam Pharma shares are held by institutional investors. 36.1% of Cyclerion Therapeutics shares are held by insiders. Comparatively, 19.5% of NewAmsterdam Pharma shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Cyclerion Therapeutics and NewAmsterdam Pharma”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cyclerion Therapeutics	$2.00 million	4.08	-$5.26 million	($1.22)	-2.47
NewAmsterdam Pharma	$45.56 million	42.11	-$176.94 million	($2.60)	-6.72

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Cyclerion Therapeutics and NewAmsterdam Pharma, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cyclerion Therapeutics	0	0	0	0	0.00
NewAmsterdam Pharma	0	0	6	0	3.00

NewAmsterdam Pharma has a consensus target price of $43.33, suggesting a potential upside of 148.04%. Given NewAmsterdam Pharma’s stronger consensus rating and higher possible upside, analysts clearly believe NewAmsterdam Pharma is more favorable than Cyclerion Therapeutics.

Summary

NewAmsterdam Pharma beats Cyclerion Therapeutics on 8 of the 13 factors compared between the two stocks.

About Cyclerion Therapeutics

Cyclerion Therapeutics, Inc., a biopharmaceutical company, develops treatments for serious diseases. It is developing Olinciguat, an orally administered vascular soluble guanylate cyclase (sGC) stimulator, which is in Phase 2 clinical trial to out-license for cardiovascular diseases; and Praliciguat, a systemic sGC stimulator that is licensed to Akebia Therapeutics, Inc. for the treatment of rare kidney disease. The company was incorporated in 2018 and is headquartered in Cambridge, Massachusetts.

About NewAmsterdam Pharma

NewAmsterdam Pharma Company N.V., a late-stage biopharmaceutical company, develops therapies to enhance patient care in populations with metabolic disease. It is developing obicetrapib, an oral low-dose cholesteryl ester transfer protein (CETP) inhibitor, that is in various clinical trials as a monotherapy and a combination therapy with ezetimibe for lowering LDL-C for cardiovascular diseases. The company also develops Obicetrapib which is in Phase 2a clinical trial for Alzheimer’s disease. NewAmsterdam Pharma Company N.V. is headquartered in Naarden, the Netherlands.