Galecto (NASDAQ:GLTO) versus Eton Pharmaceuticals (NASDAQ:ETON) Head to Head Survey

Galecto (NASDAQ:GLTO) and Eton Pharmaceuticals (NASDAQ:ETON) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Profitability

This table compares Galecto and Eton Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Galecto	N/A	-76.96%	-66.59%
Eton Pharmaceuticals	-15.81%	-36.29%	-16.84%

Insider & Institutional Ownership

14.2% of Galecto shares are owned by institutional investors. Comparatively, 27.9% of Eton Pharmaceuticals shares are owned by institutional investors. 11.9% of Galecto shares are owned by insiders. Comparatively, 14.9% of Eton Pharmaceuticals 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.

Risk and Volatility

Galecto has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Eton Pharmaceuticals has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Galecto and Eton Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galecto	0	0	1	0	3.00
Eton Pharmaceuticals	0	0	2	1	3.33

Galecto currently has a consensus target price of $10.00, suggesting a potential upside of 100.96%. Eton Pharmaceuticals has a consensus target price of $24.00, suggesting a potential upside of 38.17%. Given Galecto’s higher possible upside, research analysts clearly believe Galecto is more favorable than Eton Pharmaceuticals.

Earnings & Valuation

This table compares Galecto and Eton Pharmaceuticals”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galecto	N/A	N/A	-$38.35 million	($19.14)	-0.26
Eton Pharmaceuticals	$34.68 million	13.05	-$940,000.00	($0.22)	-78.95

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

Summary

Eton Pharmaceuticals beats Galecto on 11 of the 14 factors compared between the two stocks.

About Galecto

Galecto, Inc., a clinical-stage biotechnology company, develops molecules for the treatment of fibrosis, cancer, inflammation, and other related diseases. The company's lead product candidate is GB2064, which is in Phase IIa for the treatment of myelofibrosis. It also develops GB2064, a selective oral small molecule inhibitor of LOXL2 that is in Phase 2a clinical trial for the treatment of fibrotic diseases, including cancer and myelofibrosis; and GB1211, a selective oral galectin-3 inhibitor that is in Phase IIa for the treatment of cancer, as well as in Phase Ib/IIa for fibrosis. Galecto, Inc. was founded in 2011 and is headquartered in Copenhagen, Denmark.

About Eton Pharmaceuticals

Eton Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on developing, acquiring, and commercializing pharmaceutical products for rare diseases. The company offers ALKINDI SPRINKLE, a replacement therapy for adrenocortical insufficiency in children under 17 years of age; Carglumic Acid for the treatment of acute and chronic hyperammonemia due to N-acetylglutamate Synthase deficiency; Betaine Anhydrous for the treatment of homocystinuria; and Nitisinone for the treatment of tyrosinemia type 1. It also provides Zeneo hydrocortisone autoinjector for the treatment of adrenal crisis. Eton Pharmaceuticals, Inc. was incorporated in 2017 and is based in Deer Park, Illinois.