Mirati Therapeutics (NASDAQ: MRTX) and Affymax (OTCMKTS:AFFY) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Insider & Institutional Ownership

60.2% of Mirati Therapeutics shares are held by institutional investors. 5.1% of Mirati Therapeutics shares are held by insiders. Comparatively, 1.6% of Affymax shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Mirati Therapeutics has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Affymax has a beta of 1.97, meaning that its share price is 97% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Mirati Therapeutics and Affymax, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mirati Therapeutics 0 3 2 0 2.40
Affymax 0 0 0 0 N/A

Mirati Therapeutics presently has a consensus target price of $9.00, indicating a potential downside of 19.64%. Given Mirati Therapeutics’ higher possible upside, research analysts clearly believe Mirati Therapeutics is more favorable than Affymax.

Profitability

This table compares Mirati Therapeutics and Affymax’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mirati Therapeutics N/A -101.85% -86.50%
Affymax N/A N/A N/A

Valuation & Earnings

This table compares Mirati Therapeutics and Affymax’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Mirati Therapeutics N/A N/A -$73.47 million ($3.43) -3.27
Affymax $41,999.00 44.19 -$47.65 million N/A N/A

Affymax has higher revenue and earnings than Mirati Therapeutics.

Summary

Affymax beats Mirati Therapeutics on 5 of the 9 factors compared between the two stocks.

Mirati Therapeutics Company Profile

Mirati Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops a pipeline of oncology products. The company’s clinical stage product candidates include glesatinib, an orally-bioavailable, potent, small molecule kinase inhibitor that is in Phase II clinical trials for the treatment of non-small cell lung cancer (NSCLC) patients with genetic alterations of MET; and in Phase Ib clinical trials in patients with genetic alterations of MET and Axl in NSCLC and other solid tumors. Its clinical stage product candidates also comprise sitravatinib, an orally-bioavailable, potent, small molecule spectrum-selective kinase inhibitor, which is in Phase II clinical trials for the treatment of solid tumors, such as NSCLC and metastatic Renal Cell Carcinoma, as well as in Phase Ib clinical trials to treat NSCLC patients with RET, CHR4q12, CBL, and AXL genetic alterations; and mocetinostat, an orally administered spectrum-selective Class 1 histone deacetylase inhibitor, which is in Phase Ib/II clinical trials in combination with durvalumab for the treatment of patients with NSCLC. The company has a collaboration agreement with Foundation Medicine, Inc. and Guardant Health, Inc. to explore development of their platforms as companion diagnostics for glesatinib. Mirati Therapeutics, Inc. is headquartered in San Diego, California.

Affymax Company Profile

Affymax, Inc. is a biopharmaceutical company. The Company’s product OMONTYS (peginesatide) is for the treatment of anemia due to chronic kidney disease in adult patients on dialysis. OMONTYS is a synthetic, peptide-based erythropoiesis stimulating agent (ESA), designed to stimulate production of red blood cells. The Company has a collaboration to develop and commercialize peginesatide with Takeda Pharmaceutical Company Limited. In March 2012, the Food and Drug Administration (FDA) approved the Company’s product, OMONTYS.

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