Head-To-Head Comparison: Calithera Biosciences (CALA) versus Reata Pharmaceuticals (RETA)

Calithera Biosciences (NASDAQ: CALA) and Reata Pharmaceuticals (NASDAQ:RETA) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings for Calithera Biosciences and Reata Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Calithera Biosciences 0 1 5 0 2.83
Reata Pharmaceuticals 0 0 8 0 3.00

Calithera Biosciences presently has a consensus target price of $14.40, indicating a potential upside of 67.44%. Reata Pharmaceuticals has a consensus target price of $54.71, indicating a potential upside of 96.96%. Given Reata Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Reata Pharmaceuticals is more favorable than Calithera Biosciences.

Earnings and Valuation

This table compares Calithera Biosciences and Reata Pharmaceuticals’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Calithera Biosciences N/A N/A -$38.00 million ($0.99) -8.69
Reata Pharmaceuticals $49.86 million 14.55 -$6.22 million ($1.46) -19.03

Reata Pharmaceuticals has higher revenue and earnings than Calithera Biosciences. Reata Pharmaceuticals is trading at a lower price-to-earnings ratio than Calithera Biosciences, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Calithera Biosciences and Reata Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Calithera Biosciences N/A -19.67% -15.11%
Reata Pharmaceuticals -69.44% N/A -34.36%

Insider & Institutional Ownership

72.2% of Calithera Biosciences shares are held by institutional investors. Comparatively, 29.6% of Reata Pharmaceuticals shares are held by institutional investors. 16.3% of Calithera Biosciences shares are held by company insiders. Comparatively, 44.0% of Reata Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Reata Pharmaceuticals beats Calithera Biosciences on 7 of the 11 factors compared between the two stocks.

About Calithera Biosciences

Calithera Biosciences, Inc. is a clinical-stage pharmaceutical company. The Company focuses on discovering and developing small molecule drugs directed against tumor and immune cell targets that control key metabolic pathways in the tumor microenvironment. It is engaged in developing agents that take advantage of the metabolic requirements of tumor cells and cancer-fighting immune cells, such as cytotoxic T-cells. The Company’s lead product candidate, CB-839, is a critical enzyme in tumor cells. Its other product candidate, CB-1158, is being developed for hematology and oncology indications. CB-1158 is a potent and selective orally bioavailable inhibitor of the enzyme arginase. CB-839 is a selective, reversible and orally bioavailable inhibitor of human glutaminase. CB-1158 has single agent anti-tumor activity in syngeneic mouse tumor models that has been demonstrated to act through an immune mechanism. CB-1158 is being tested in a Phase I clinical trial in patients with solid tumors.

About Reata Pharmaceuticals

Reata Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on identifying, developing and commercializing product candidates that modulate the activity of regulatory proteins involved in the biology of mitochondrial function, oxidative stress, and inflammation to address the unmet medical needs of patients with a range of serious or life-threatening diseases. The Company’s lead product candidates include bardoxolone methyl, which is being studied in Phase III trial for the treatment of pulmonary arterial hypertension (PAH), associated with connective tissue disease (CTD-PAH), as well as a Phase II trial for the treatment of pulmonary hypertension due to interstitial lung disease (PH-ILD), and PAH, each of which are subsets of pulmonary hypertension (PH), Omaveloxolone, which is in Phase II clinical development for the treatment of multiple diseases, including Friedreich’s ataxia, mitochondrial myopathies and metastatic melanoma.

Receive News & Ratings for Calithera Biosciences Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Calithera Biosciences and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply