Critical Comparison: Mirati Therapeutics (MRTX) & Sevion Therapeutics (SVON)

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Mirati Therapeutics and Sevion Therapeutics, as reported by MarketBeat.com.

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

Mirati Therapeutics presently has a consensus target price of $13.71, indicating a potential downside of 27.82%. Given Mirati Therapeutics’ higher probable upside, analysts clearly believe Mirati Therapeutics is more favorable than Sevion Therapeutics.

Earnings & Valuation

This table compares Mirati Therapeutics and Sevion Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mirati Therapeutics N/A N/A -$83.11 million ($3.11) -6.11
Sevion Therapeutics $80,000.00 209.85 -$5.79 million ($4.91) -0.06

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

Institutional and Insider Ownership

64.7% of Mirati Therapeutics shares are owned by institutional investors. 5.1% of Mirati Therapeutics shares are owned by insiders. Comparatively, 7.7% of Sevion Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Mirati Therapeutics N/A -96.82% -82.29%
Sevion Therapeutics N/A -264.80% -81.73%

Risk and Volatility

Mirati Therapeutics has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500. Comparatively, Sevion Therapeutics has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Summary

Mirati Therapeutics beats Sevion Therapeutics on 6 of the 11 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 Sevion Therapeutics

Eloxx Pharmaceuticals, Inc., formerly Sevion Therapeutics, Inc., is a development-stage biotech company. The Company is engaged in building and developing a portfolio of therapeutics, from both internal discovery and acquisition, for the treatment of cancer and immunological diseases. The Company is engaged in the development and licensing of technology to discover and engineer monoclonal antibodies. The Company’s product candidates are derived from multiple technology platforms, such as cell-based arrayed antibody discovery, ultralong antibody scaffolds and Chimerasome nanocages. The Company has various antibodies in its preclinical pipeline. The Company’s antibody therapeutic candidates target the potassium channel, voltage dependent (Kv1.3) ion channel, which is essential in the pathogenesis of several autoimmune and inflammatory disorders. Other antibodies in its pipeline target cell surface molecules involved in cancer progression.

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