Critical Comparison: Catalyst Pharmaceuticals (NASDAQ:CPRX) versus Antibe Therapeutics (OTCMKTS:ATBPF)

Antibe Therapeutics (OTCMKTS:ATBPF) and Catalyst Pharmaceuticals (NASDAQ:CPRX) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Profitability

This table compares Antibe Therapeutics and Catalyst Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Antibe Therapeutics	N/A	-56.48%	-29.07%
Catalyst Pharmaceuticals	15.69%	27.77%	23.68%

Insider & Institutional Ownership

79.2% of Catalyst Pharmaceuticals shares are owned by institutional investors. 9.0% of Antibe Therapeutics shares are owned by insiders. Comparatively, 11.0% of Catalyst Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Antibe Therapeutics and Catalyst Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Antibe Therapeutics	N/A	N/A	-$14.73 million	($0.25)	-0.86
Catalyst Pharmaceuticals	$398.20 million	7.03	$71.41 million	$0.54	43.69

Catalyst Pharmaceuticals has higher revenue and earnings than Antibe Therapeutics. Antibe Therapeutics is trading at a lower price-to-earnings ratio than Catalyst Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Antibe Therapeutics and Catalyst Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Antibe Therapeutics	0	1	0	0	2.00
Catalyst Pharmaceuticals	0	0	6	0	3.00

Catalyst Pharmaceuticals has a consensus price target of $29.50, suggesting a potential upside of 25.05%. Given Catalyst Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Catalyst Pharmaceuticals is more favorable than Antibe Therapeutics.

Risk and Volatility

Antibe Therapeutics has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Catalyst Pharmaceuticals has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Summary

Catalyst Pharmaceuticals beats Antibe Therapeutics on 13 of the 13 factors compared between the two stocks.

About Antibe Therapeutics

Antibe Therapeutics Inc., a biotechnology company, engages in developing novel therapeutics and medical devices in the areas of pain, inflammation and regenerative medicine in Canada, Europe, the United States, and internationally. The company's pipeline includes therapies that seek to overcome the gastrointestinal (GI) ulcers and bleeding associated with nonsteroidal anti-inflammatory drugs (NSAIDs). Its lead compound is Otenaproxesul, an NSAID that releases hydrogen sulfide for treating post-operative pain, migraine, acute musculoskeletal pain, dysmenorrhea, gout, and dental pain. In addition, its products comprise ATB-352, which is in preclinical stage for acute pain. The company was incorporated in 2009 and is headquartered in Toronto, Canada.

About Catalyst Pharmaceuticals

Catalyst Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on developing and commercializing therapies for people with rare debilitating, chronic neuromuscular, and neurological diseases in the United States. It offers Firdapse, an amifampridine phosphate tablets for the treatment of patients with lambert-eaton myasthenic syndrome (LEMS); and Ruzurgi for the treatment of pediatric LEMS patients. The company develops Firdapse for the treatment of MuSK antibody positive myasthenia gravis and spinal muscular atrophy type. It has license agreements with BioMarin Pharmaceutical Inc.; and collaboration and license agreement with Endo Ventures Limited for the development and commercialization of generic Sabril tablets. The company was founded in 2002 and is based in Coral Gables, Florida.