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

Profitability

This table compares Infinity Pharmaceuticals and RXi Pharmaceuticals Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Infinity Pharmaceuticals N/A -88.08% -59.20%
RXi Pharmaceuticals Corporation N/A -155.48% -102.55%

Institutional and Insider Ownership

67.5% of Infinity Pharmaceuticals shares are owned by institutional investors. Comparatively, 1.7% of RXi Pharmaceuticals Corporation shares are owned by institutional investors. 6.8% of Infinity Pharmaceuticals shares are owned by company insiders. Comparatively, 5.7% of RXi Pharmaceuticals Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Infinity Pharmaceuticals and RXi Pharmaceuticals Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Infinity Pharmaceuticals 0 1 0 0 2.00
RXi Pharmaceuticals Corporation 0 0 0 0 N/A

RXi Pharmaceuticals Corporation has a consensus target price of $1.71, indicating a potential upside of 223.25%. Given RXi Pharmaceuticals Corporation’s higher probable upside, analysts plainly believe RXi Pharmaceuticals Corporation is more favorable than Infinity Pharmaceuticals.

Volatility and Risk

Infinity Pharmaceuticals has a beta of 2.65, meaning that its share price is 165% more volatile than the S&P 500. Comparatively, RXi Pharmaceuticals Corporation has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Earnings & Valuation

This table compares Infinity Pharmaceuticals and RXi Pharmaceuticals Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Infinity Pharmaceuticals N/A N/A -$55.73 million ($1.40) -0.86
RXi Pharmaceuticals Corporation N/A N/A -$9.40 million ($1.32) -0.40

Infinity Pharmaceuticals is trading at a lower price-to-earnings ratio than RXi Pharmaceuticals Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Infinity Pharmaceuticals beats RXi Pharmaceuticals Corporation on 5 of the 8 factors compared between the two stocks.

About Infinity Pharmaceuticals

Infinity Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is engaged in the discovery, development and delivery of medicines to treat diseases. The Company develops small molecule drugs that target disease pathways for potential applications in oncology. Its product candidate is duvelisib, also known as IPI-145, is an oral, dual-inhibitor of the delta and gamma isoforms of phosphoinositide-3-kinase (PI3K), for the treatment of hematologic malignancies, or blood cancers. The Company is also developing IPI-549, which is an orally administered, clinical-stage, immuno-oncology product candidate that selectively inhibits the gamma isoform of PI3K. In addition to duvelisib, the Company focuses to generate new product candidates for potential investigation in oncology. The Company also focuses on developing DYNAMO, CONTEMPO, BRAVURA, FRESCO, DYNAMO+R, DUO, SYNCHRONY and Duvelisib + Venetoclax.

About RXi Pharmaceuticals Corporation

RXi Pharmaceuticals Corporation is a clinical-stage ribonucleic acid (RNA) interference (RNAi) company developing therapeutics in dermatology and ophthalmology that address unmet medical needs. The Company’s development programs are based on its self-delivering RNAi (sd-rxRNA) platform and Samcyprone, a topical immunomodulator. Its clinical development programs include RXI-109, an sd-rxRNA, for the treatment of dermal and ocular scarring, and Samcyprone for the treatment of such disorders as warts, alopecia areata, non-malignant skin tumors and cutaneous metastases of melanoma. Its pipeline is focused on approximately three areas, including dermatology, ophthalmology and cosmetic product development. Its RNAi therapies are designed to silence, or down-regulate, the expression of a specific gene that may be over-expressed in a disease condition and its immunotherapy agent treats diseases by inducing, enhancing or suppressing an immune response.

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