TG Therapeutics (NASDAQ: TGTX) and Foundation Medicine (NASDAQ:FMI) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Volatility & Risk

TG Therapeutics has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Foundation Medicine has a beta of -0.09, indicating that its stock price is 109% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for TG Therapeutics and Foundation Medicine, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TG Therapeutics 0 0 10 0 3.00
Foundation Medicine 0 2 2 0 2.50

TG Therapeutics presently has a consensus target price of $24.84, suggesting a potential upside of 118.85%. Foundation Medicine has a consensus target price of $35.00, suggesting a potential downside of 10.49%. Given TG Therapeutics’ stronger consensus rating and higher probable upside, equities analysts plainly believe TG Therapeutics is more favorable than Foundation Medicine.

Valuation and Earnings

This table compares TG Therapeutics and Foundation Medicine’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TG Therapeutics $152,381.00 4,641.12 -$104.96 million ($1.95) -5.82
Foundation Medicine $119.58 million 11.78 -$140.79 million ($4.47) -8.75

TG Therapeutics has higher revenue, but lower earnings than Foundation Medicine. Foundation Medicine is trading at a lower price-to-earnings ratio than TG Therapeutics, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

46.5% of TG Therapeutics shares are owned by institutional investors. Comparatively, 30.9% of Foundation Medicine shares are owned by institutional investors. 16.7% of TG Therapeutics shares are owned by company insiders. Comparatively, 2.7% of Foundation Medicine shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares TG Therapeutics and Foundation Medicine’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TG Therapeutics -68,806.59% -154.02% -117.88%
Foundation Medicine -131.79% -109.63% -81.74%

Summary

TG Therapeutics beats Foundation Medicine on 9 of the 13 factors compared between the two stocks.

TG Therapeutics Company Profile

TG Therapeutics, Inc. (TG) is a biopharmaceutical company focused on the acquisition, development and commercialization of treatments for B-cell malignancies and autoimmune diseases. As of December 31, 2016, the Company was developing two therapies targeting hematological malignancies. TG-1101 (ublituximab) is a glycoengineered monoclonal antibody that targets a specific epitope on the cluster of differentiation (CD20) antigen found on mature B-lymphocytes. The Company is also developing TGR-1202, an orally available Phosphoinositide 3-kinase (PI3K) delta inhibitor. Both TG-1101 and TGR-1202 are in clinical development for patients with hematologic malignancies. The Company also has pre-clinical programs focusing on developing interleukin-1 receptor-associated kinase 4 (IRAK4) inhibitors and anti- programmed cell death ligand 1 (PD-L1) and anti- glucocorticoid-induced tumor necrosis factor receptor (GITR) antibodies.

Foundation Medicine Company Profile

Foundation Medicine, Inc. is a molecular information company. The Company sells products that are enabled by its molecular information platform to physicians and biopharmaceutical companies. It is engaged in the business of delivering molecular information about cancer to its customers. Its platform includes various methods and algorithms for analyzing specimens across various types of cancer. Its suite of clinical molecular information products includes FoundationOne, which is used for solid tumors; FoundationOne Heme, which is used for blood-based cancers or hematologic malignancies, including leukemia, lymphoma, myeloma, pediatric cancers and advanced sarcoma; FoundationACT (Assay for Circulating Tumor DNA), which is a blood-based (liquid biopsy) assay that evaluates circulating tumor deoxyribonucleic acid (ctDNA), and FoundationFocus CDxBRCA, which is a companion diagnostic assay to aid in identifying women with ovarian cancer for whom treatment with Rubraca (rucaparib).

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