Head to Head Review: Ultragenyx Pharmaceutical (NASDAQ:RARE) versus Syndax Pharmaceuticals (NASDAQ:SNDX)

Ultragenyx Pharmaceutical (NASDAQ:RARE) and Syndax Pharmaceuticals (NASDAQ:SNDX) are both small-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Ultragenyx Pharmaceutical and Syndax Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ultragenyx Pharmaceutical	$673.00 million	2.21	-$575.00 million	($5.84)	-2.58
Syndax Pharmaceuticals	$172.35 million	6.73	-$285.42 million	($2.51)	-5.22

Syndax Pharmaceuticals has lower revenue, but higher earnings than Ultragenyx Pharmaceutical. Syndax Pharmaceuticals is trading at a lower price-to-earnings ratio than Ultragenyx Pharmaceutical, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Ultragenyx Pharmaceutical has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, Syndax Pharmaceuticals has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.

Profitability

This table compares Ultragenyx Pharmaceutical and Syndax Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ultragenyx Pharmaceutical	-81.79%	N/A	-44.40%
Syndax Pharmaceuticals	-87.52%	-372.94%	-39.11%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Ultragenyx Pharmaceutical and Syndax Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ultragenyx Pharmaceutical	1	11	9	1	2.45
Syndax Pharmaceuticals	1	0	10	0	2.82

Ultragenyx Pharmaceutical currently has a consensus price target of $33.65, suggesting a potential upside of 123.29%. Syndax Pharmaceuticals has a consensus price target of $41.80, suggesting a potential upside of 219.33%. Given Syndax Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Syndax Pharmaceuticals is more favorable than Ultragenyx Pharmaceutical.

Insider and Institutional Ownership

97.7% of Ultragenyx Pharmaceutical shares are owned by institutional investors. 5.2% of Ultragenyx Pharmaceutical shares are owned by insiders. Comparatively, 4.8% of Syndax Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Syndax Pharmaceuticals beats Ultragenyx Pharmaceutical on 8 of the 14 factors compared between the two stocks.

About Ultragenyx Pharmaceutical

Ultragenyx Pharmaceutical Inc., a biopharmaceutical company, focuses on the identification, acquisition, development, and commercialization of novel products for the treatment of rare and ultra-rare genetic diseases in North America, Latin America, Japan, Europe, and internationally. Its biologic products include Crysvita (burosumab), an antibody targeting fibroblast growth factor 23 for the treatment of X-linked hypophosphatemia, as well as tumor-induced osteomalacia; Mepsevii, an enzyme replacement therapy for the treatment of children and adults with Mucopolysaccharidosis VII; Dojolvi for treating long-chain fatty acid oxidation disorders; and Evkeeza (evinacumab) for the treatment of homozygous familial hypercholesterolemia. The company's products candidatures include DTX401, an adeno-associated virus 8 (AAV8) gene therapy clinical candidate for the treatment of patients with glycogen storage disease type Ia; DTX301, an AAV8 gene therapy for the treatment of patients with ornithine transcarbamylase; UX143, a human monoclonal antibody for the treatment of osteogenesis imperfecta; GTX-102, an antisense oligonucleotide for the treatment of Angelman syndrome; UX111, an AAV9 gene therapy product candidate for the treatment of patients with Sanfilippo syndrome type A, or MPS IIIA, a rare lysosomal storage disease; UX701, for the treatment of Wilson disease; and UX053 for the treatment of glycogen storage disease type III. Ultragenyx Pharmaceutical Inc. has collaboration and license agreement with Kyowa Kirin Co., Ltd.; Saint Louis University; Baylor Research Institute; REGENXBIO Inc.; Bayer Healthcare LLC; GeneTx; Mereo; University of Pennsylvania; Arcturus Therapeutics Holdings Inc.; Solid Biosciences Inc.; Regeneron; Abeona; and Daiichi Sankyo Co., Ltd. The company was incorporated in 2010 and is headquartered in Novato, California.

About Syndax Pharmaceuticals

Syndax Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops therapies for the treatment of cancer. Its lead product candidates are revumenib, a potent, selective, small molecule inhibitor of the menin-MLL binding interaction for the treatment of KMT2A rearranged, acute leukemias, and solid tumor; and SNDX-6352 or axatilimab, a monoclonal antibody that blocks the colony stimulating factor 1, or CSF-1 receptor for the treatment of patients with chronic graft versus host disease (cGVHD) and idiopathic pulmonary fibrosis (IPF). The company is also developing Entinostat. It has an agreement with Eddingpharm International Company Limited for licensing, development, and commercialization of Entinostat. Syndax Pharmaceuticals, Inc. was incorporated in 2005 and is headquartered in Waltham, Massachusetts.