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

Institutional & Insider Ownership

6.7% of SIGA Technologies shares are held by institutional investors. Comparatively, 64.7% of Mirati Therapeutics shares are held by institutional investors. 4.7% of SIGA Technologies shares are held by insiders. Comparatively, 5.1% of Mirati Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

SIGA Technologies has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Mirati Therapeutics has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for SIGA Technologies and Mirati Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SIGA Technologies 0 0 0 0 N/A
Mirati Therapeutics 0 1 8 0 2.89

Mirati Therapeutics has a consensus target price of $13.71, suggesting a potential downside of 28.20%. Given Mirati Therapeutics’ higher probable upside, analysts plainly believe Mirati Therapeutics is more favorable than SIGA Technologies.

Profitability

This table compares SIGA Technologies and Mirati Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SIGA Technologies -201.85% N/A -23.22%
Mirati Therapeutics N/A -96.82% -82.29%

Earnings and Valuation

This table compares SIGA Technologies and Mirati Therapeutics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SIGA Technologies $14.99 million 26.06 -$39.69 million ($0.53) -9.34
Mirati Therapeutics N/A N/A -$83.11 million ($3.11) -6.14

SIGA Technologies has higher revenue and earnings than Mirati Therapeutics. SIGA Technologies is trading at a lower price-to-earnings ratio than Mirati Therapeutics, indicating that it is currently the more affordable of the two stocks.

Summary

Mirati Therapeutics beats SIGA Technologies on 7 of the 12 factors compared between the two stocks.

About SIGA Technologies

SIGA Technologies, Inc. is engaged in the development and commercialization of solutions for various unmet medical needs and biothreats. The Company’s lead product is TPOXX, an orally administered antiviral drug that targets orthopoxviruses infections. TPOXX is a small-molecule drug delivered to the Strategic Stockpile under the Project BioShield Act of 2004 (Project BioShield). TPOXX is an investigational product that is not approved by the United States Food and Drug Administration (FDA) as a treatment of smallpox or any other indication. The Company relies on and uses third parties known as contract manufacturing organizations (CMOs) to procure commercial raw materials and supplies, and to manufacture TPOXX. The Company identified a lead pre-clinical drug candidate with activity against four serotypes of the virus and which has shown efficacy in a murine model of disease.

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.

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