Cidara Therapeutics (NASDAQ:CDTX) and Adverum Biotechnologies (NASDAQ:ADVM) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.
This table compares Cidara Therapeutics and Adverum Biotechnologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and target prices for Cidara Therapeutics and Adverum Biotechnologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cidara Therapeutics presently has a consensus price target of $13.25, indicating a potential upside of 197.75%. Adverum Biotechnologies has a consensus price target of $9.80, indicating a potential upside of 63.33%. Given Cidara Therapeutics’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Cidara Therapeutics is more favorable than Adverum Biotechnologies.
Risk and Volatility
Cidara Therapeutics has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500. Comparatively, Adverum Biotechnologies has a beta of 3.77, meaning that its stock price is 277% more volatile than the S&P 500.
Insider & Institutional Ownership
67.1% of Cidara Therapeutics shares are owned by institutional investors. Comparatively, 58.5% of Adverum Biotechnologies shares are owned by institutional investors. 15.2% of Cidara Therapeutics shares are owned by company insiders. Comparatively, 5.0% of Adverum Biotechnologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Cidara Therapeutics and Adverum Biotechnologies’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cidara Therapeutics||N/A||N/A||-$55.72 million||($3.18)||-1.40|
|Adverum Biotechnologies||$1.85 million||203.32||-$56.14 million||($1.29)||-4.65|
Cidara Therapeutics has higher earnings, but lower revenue than Adverum Biotechnologies. Adverum Biotechnologies is trading at a lower price-to-earnings ratio than Cidara Therapeutics, indicating that it is currently the more affordable of the two stocks.
Cidara Therapeutics beats Adverum Biotechnologies on 8 of the 13 factors compared between the two stocks.
Cidara Therapeutics Company Profile
Cidara Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of anti-infectives for the treatment of diseases. Its lead product candidate is rezafungin acetate, a molecule in the echinocandin class of antifungals for the treatment and prevention of serious invasive fungal infections, including candidemia and invasive candidiasis, fungal infections associated with high mortality rates. It is also developing antibody-drug conjugates for multidrug-resistant bacterial infections that directly kill pathogens and also direct a patient’s immune system to attack and eliminate bacterial, fungal, or viral pathogens. The company was formerly known as K2 Therapeutics, Inc. and changed its name to Cidara Therapeutics, Inc. in June 2014. Cidara Therapeutics, Inc. was founded in 2012 and is headquartered in San Diego, California.
Adverum Biotechnologies Company Profile
Adverum Biotechnologies, Inc., a clinical-stage gene therapy company, engages in developing gene therapy product candidates that target serious rare and ocular diseases. It leverages its adeno-associated virus (AAV)-based directed evolution platform to develop products. The company’s pipeline of product candidates include ADVM-043 to treat alpha-1 antitrypsin deficiency, which is in Phase I/II clinical trial; and ADVM-053 for hereditary angioedema disease, which is in preclinical stage; as well as ADVM-022 and ADVM-032 for wet age-related macular degeneration disease, which are in preclinical stage. It has collaboration agreement with Editas Medicine, Inc. to leverage its proprietary AAV vectors for genome editing technologies to treat up to five inherited retinal diseases; and Regeneron Pharmaceuticals, Inc. for the development of up to eight distinct ocular therapeutic targets, as well as includes AVA-311 for the treatment of juvenile X-Linked Retinoschisis. The company was formerly known as Avalanche Biotechnologies, Inc. and changed its name to Adverum Biotechnologies, Inc. in May 2016. Adverum Biotechnologies, Inc. was founded in 2006 and is headquartered in Menlo Park, California.
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