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

Risk & Volatility

Mirati Therapeutics has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500. Comparatively, Trillium Therapeutics has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Insider & Institutional Ownership

60.2% of Mirati Therapeutics shares are owned by institutional investors. Comparatively, 48.0% of Trillium Therapeutics shares are owned by institutional investors. 5.1% of Mirati Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Mirati Therapeutics and Trillium Therapeutics’ 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%
Trillium Therapeutics N/A -178.08% -61.40%

Earnings and Valuation

This table compares Mirati Therapeutics and Trillium Therapeutics’ gross revenue, earnings per share 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) -3.88
Trillium Therapeutics N/A N/A -$28.62 million ($3.73) -1.38

Mirati Therapeutics is trading at a lower price-to-earnings ratio than Trillium Therapeutics, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Mirati Therapeutics and Trillium Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mirati Therapeutics 0 3 7 0 2.70
Trillium Therapeutics 0 0 6 0 3.00

Mirati Therapeutics currently has a consensus target price of $12.63, suggesting a potential downside of 5.08%. Trillium Therapeutics has a consensus target price of $16.50, suggesting a potential upside of 220.39%. Given Trillium Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Trillium Therapeutics is more favorable than Mirati Therapeutics.

Summary

Mirati Therapeutics beats Trillium Therapeutics on 6 of the 10 factors compared between the two stocks.

About Mirati Therapeutics

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.

About Trillium Therapeutics

Trillium Therapeutics Inc., a clinical-stage immuno-oncology company, develops therapies for the treatment of cancer. The company’s lead program is TTI-621, a SIRPaFc fusion protein that acts a soluble decoy receptor preventing CD47 from delivering its inhibitory signal, which is in Phase I clinical trial for advanced hematologic malignancies and solid tumors therapy. Its product candidates also include TTI-622, an IgG4 SIRPaFc protein for combination therapy; bromodomain inhibitor; and epidermal growth factor receptor antagonist, which are in preclinical development stage, as well as undisclosed immuno-oncology targets that are in the discovery Phase. The company was formerly known as Stem Cell Therapeutics Corp. and changed its name to Trillium Therapeutics Inc. in June 2014. Trillium Therapeutics Inc. was founded in 2004 and is headquartered in Mississauga, Canada.

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