Financial Survey: Avenue Therapeutics (NASDAQ:ATXI) vs. Galectin Therapeutics (NASDAQ:GALT)

Galectin Therapeutics (NASDAQ:GALT) and Avenue Therapeutics (NASDAQ:ATXI) 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, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Insider & Institutional Ownership

11.7% of Galectin Therapeutics shares are owned by institutional investors. Comparatively, 17.3% of Avenue Therapeutics shares are owned by institutional investors. 50.1% of Galectin Therapeutics shares are owned by insiders. Comparatively, 1.8% of Avenue Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Galectin Therapeutics and Avenue Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galectin Therapeutics	0	1	0	0	2.00
Avenue Therapeutics	0	0	0	0	0.00

Galectin Therapeutics currently has a consensus price target of $11.00, indicating a potential upside of 869.16%. Given Galectin Therapeutics’ stronger consensus rating and higher probable upside, research analysts clearly believe Galectin Therapeutics is more favorable than Avenue Therapeutics.

Earnings & Valuation

This table compares Galectin Therapeutics and Avenue Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galectin Therapeutics	N/A	N/A	-$41.07 million	($0.73)	-1.55
Avenue Therapeutics	N/A	N/A	-$10.38 million	$18.35	0.10

Galectin Therapeutics is trading at a lower price-to-earnings ratio than Avenue Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Galectin Therapeutics and Avenue Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Galectin Therapeutics	N/A	N/A	-163.15%
Avenue Therapeutics	N/A	-471.57%	-296.50%

Volatility and Risk

Galectin Therapeutics has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Avenue Therapeutics has a beta of -0.27, suggesting that its share price is 127% less volatile than the S&P 500.

Summary

Galectin Therapeutics beats Avenue Therapeutics on 6 of the 10 factors compared between the two stocks.

About Galectin Therapeutics

Galectin Therapeutics Inc., a clinical stage biopharmaceutical company, engages in the research and development of therapies for fibrotic, cancer, and other diseases. Its lead product candidate is belapectin (GR-MD-02) galectin-3 inhibitor, that is in Phase 2b/3 clinical trial, to prevent esophageal varices in patient with non-alcoholic steatohepatitis (NASH) cirrhosis; and Phase 2 clinical trial for the treatment of liver fibrosis, as well as severe skin disease, and melanoma and head and neck squamous cell carcinoma. The company, through its Galectin Sciences, LLC, which is a collaborative joint venture co-owned by SBH Sciences, Inc., to research and develop small organic molecule inhibitors of galectin-3 for oral administration. The company was formerly known as Pro-Pharmaceuticals, Inc. and changed its name to Galectin Therapeutics, Inc. in May 2011. Galectin Therapeutics Inc. was founded in 2000 and is based in Norcross, Georgia.

About Avenue Therapeutics

Avenue Therapeutics, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of therapies for the treatment of neurologic diseases. Its product candidates include AJ201, which is in a Phase 1b/2a clinical trial for the treatment of spinal and bulbar muscular atrophy; intravenous tramadol for the treatment of post-operative acute pain; and BAER-101 for the treatment of epilepsy and panic disorders. The company was incorporated in 2015 and is based in Bay Harbor Islands, Florida.