Phathom Pharmaceuticals (NASDAQ:PHAT) versus CASI Pharmaceuticals (NASDAQ:CASI) Critical Review

Phathom Pharmaceuticals (NASDAQ:PHAT) and CASI Pharmaceuticals (NASDAQ:CASI) are both small-cap healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Phathom Pharmaceuticals and CASI Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phathom Pharmaceuticals	1	1	7	1	2.80
CASI Pharmaceuticals	1	0	0	0	1.00

Phathom Pharmaceuticals presently has a consensus price target of $20.11, suggesting a potential upside of 250.37%. Given Phathom Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Phathom Pharmaceuticals is more favorable than CASI Pharmaceuticals.

Profitability

This table compares Phathom Pharmaceuticals and CASI Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phathom Pharmaceuticals	-41.34%	N/A	-20.81%
CASI Pharmaceuticals	-183.93%	N/A	-131.54%

Valuation & Earnings

This table compares Phathom Pharmaceuticals and CASI Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phathom Pharmaceuticals	$175.11 million	2.65	-$221.25 million	($1.28)	-4.48
CASI Pharmaceuticals	$26.85 million	0.10	-$39.26 million	($3.01)	-0.07

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

Volatility & Risk

Phathom Pharmaceuticals has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, CASI Pharmaceuticals has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Institutional and Insider Ownership

99.0% of Phathom Pharmaceuticals shares are owned by institutional investors. Comparatively, 22.2% of CASI Pharmaceuticals shares are owned by institutional investors. 9.3% of Phathom Pharmaceuticals shares are owned by company insiders. Comparatively, 21.2% of CASI Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Phathom Pharmaceuticals beats CASI Pharmaceuticals on 10 of the 14 factors compared between the two stocks.

About Phathom Pharmaceuticals

Phathom Pharmaceuticals, Inc., biopharmaceutical company, focuses on developing and commercializing treatments for gastrointestinal diseases. The company has the rights in the United States, Europe, and Canada for an investigational potassium-competitive acid blocker (P-CAB) that blocks acid secretion in the stomach. It is also developing vonoprazan for the treatment of erosive gastroesophageal reflux disease; and in combination with antibiotics for the treatment of Helicobacter pylori infection. The company was incorporated in 2018 and is headquartered in Florham Park, New Jersey.

About CASI Pharmaceuticals

CASI Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes therapeutics and pharmaceutical products in the People's Republic of China, the United States, and internationally. It offers EVOMELA, an intravenous formulation of melphalan for use as a conditioning treatment prior to stem cell transplantation, and as a palliative treatment for patients with multiple myeloma. The company's other hematology/oncology assets in pipeline include CNCT 19, an autologous CD19 CAR-T investigative product; BI-1206, novel anti-Fc?RIIB antibody, for the treatment of solid tumors and relapsed/refractory non-hodgkin lymphoma; CB-5339, a novel VCP/p97 inhibitor that focuses on valosin-containing protein (VCP)/p97 as a novel target in protein homeostasis, DNA damage response, and other cellular stress pathways for therapeutic use in the treatment of patients with various malignancies; CID-103, a human IgG1 anti-CD38 monoclonal antibody; and Thiotepa, a chemotherapeutic agent, which has various indications, including use as a conditioning treatment for use prior to certain allogeneic haemopoietic stem cell transplants. The company has licensing agreements with Juventas Cell Therapy Ltd.; BioInvent International AB; Black Belt Therapeutics Limited; Cleave Therapeutics, Inc.; and Acrotech Biopharma L.L.C. to develop and commercialize its commercial product EVOMELA. It also has distribution agreements with China Resources Pharmaceutical Commercial Group International Trading Co., Ltd; Pharmathen Global BV; and Riemser Pharma GmbH. CASI Pharmaceuticals, Inc. was incorporated in 1991 and is based in Beijing, the People's Republic of China.