SAGE Therapeutics (NASDAQ: SAGE) and aTyr Pharma (NASDAQ:LIFE) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.

Profitability

This table compares SAGE Therapeutics and aTyr Pharma’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SAGE Therapeutics N/A -89.46% -78.94%
aTyr Pharma N/A -87.33% -65.25%

Earnings and Valuation

This table compares SAGE Therapeutics and aTyr Pharma’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SAGE Therapeutics N/A N/A -$158.98 million ($6.87) -25.60
aTyr Pharma N/A N/A -$57.85 million ($2.04) -1.91

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

Institutional & Insider Ownership

95.3% of SAGE Therapeutics shares are owned by institutional investors. Comparatively, 58.3% of aTyr Pharma shares are owned by institutional investors. 6.1% of SAGE Therapeutics shares are owned by insiders. Comparatively, 33.3% of aTyr Pharma shares are owned by 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for SAGE Therapeutics and aTyr Pharma, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SAGE Therapeutics 1 1 12 0 2.79
aTyr Pharma 0 3 1 0 2.25

SAGE Therapeutics presently has a consensus price target of $171.21, suggesting a potential downside of 2.64%. aTyr Pharma has a consensus price target of $5.00, suggesting a potential upside of 28.21%. Given aTyr Pharma’s higher possible upside, analysts plainly believe aTyr Pharma is more favorable than SAGE Therapeutics.

Summary

aTyr Pharma beats SAGE Therapeutics on 7 of the 10 factors compared between the two stocks.

About SAGE Therapeutics

SAGE Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in developing and commercializing medicines to treat central nervous system (CNS) disorders. The Company’s lead product candidate, SAGE-547 is an intravenous formulation of allopregnanolone, a neurosteroid that acts as a synaptic and extrasynaptic modulator of the Gamma-Amino Butyric Acid-A (GABAA) receptor. The Company’s next-generation product candidates, SAGE-217 and SAGE-689, also target the GABAA receptor system. The Company is focused on developing drugs based on selective allosteric modulation of CNS synaptic and extrasynaptic receptors. The Company’s chemistry platform is focused on the chemical scaffolds of endogenous or chemically modified synthetic neuroactive steroid compounds that are allosteric modulators of GABAA or N-Methyl-D-aspartic acid or N-Methyl-D-aspartate (NMDA) receptors.

About aTyr Pharma

aTyr Pharma, Inc. is a clinical-stage biotherapeutics company. The Company is engaged in the discovery and clinical development of medicines for patients suffering from severe, rare diseases using its Physiocrine biology, a discovered set of physiological modulators. The Company focuses on the development of Physiocrine-based therapeutics for the treatment of rare diseases, including facioscapulohumeral muscular dystrophy (FSHD) and limb-girdle muscular dystrophy (LGMD) 2B. The Company is developing Resolaris, an intravenous protein therapeutic for the treatment of rare myopathies with an immune component (RMICs). The Company is investigating Resolaris in patients with LGMD2B. The Company is conducting approximately three open label trials in patients with early onset FSHD, in adult patients with FSHD or LGMD2B and a long-term extension study in adult patients with FSHD. The Company has not generated any revenues.

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