Reviewing Repros Therapeutics (RPRX) and Arena Pharmaceuticals (ARNA)

Repros Therapeutics (NASDAQ: RPRX) and Arena Pharmaceuticals (NASDAQ:ARNA) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Profitability

This table compares Repros Therapeutics and Arena Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Repros Therapeutics -4,242.73% -894.22% -230.71%
Arena Pharmaceuticals -36.78% -34.12% -14.83%

Earnings and Valuation

This table compares Repros Therapeutics and Arena Pharmaceuticals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Repros Therapeutics $50,000.00 530.10 -$17.27 million ($0.50) -1.34
Arena Pharmaceuticals $123.97 million 12.60 -$22.51 million ($0.93) -42.78

Repros Therapeutics has higher earnings, but lower revenue than Arena Pharmaceuticals. Arena Pharmaceuticals is trading at a lower price-to-earnings ratio than Repros Therapeutics, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

13.6% of Repros Therapeutics shares are held by institutional investors. Comparatively, 72.4% of Arena Pharmaceuticals shares are held by institutional investors. 2.5% of Repros Therapeutics shares are held by company insiders. Comparatively, 1.9% of Arena Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Repros Therapeutics and Arena Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Repros Therapeutics 0 1 0 0 2.00
Arena Pharmaceuticals 0 1 7 0 2.88

Repros Therapeutics currently has a consensus price target of $0.39, suggesting a potential downside of 41.79%. Arena Pharmaceuticals has a consensus price target of $41.14, suggesting a potential upside of 3.40%. Given Arena Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Arena Pharmaceuticals is more favorable than Repros Therapeutics.

Summary

Arena Pharmaceuticals beats Repros Therapeutics on 8 of the 13 factors compared between the two stocks.

About Repros Therapeutics

Repros Therapeutics, Inc. is a biopharmaceutical company focused on the development of new drugs to treat hormonal and reproductive system disorders. The Company’s product candidates include enclomiphene, which is a single isomer of clomiphene citrate, an orally active small molecule compound, and Proellex, which is an orally administered selective blocker of the progesterone receptor in women, for the treatment of uterine fibroids and endometriosis. Enclomiphene is for the treatment of secondary hypogonadism in overweight men wishing to restore normal testicular function. The Company’s Proellex product candidate for female reproductive health is a chemical entity, which acts as a selective blocker of the progesterone receptor. It is being developed for the treatment of symptoms associated with uterine fibroids and endometriosis The Company has an active Investigational New Drug (IND) for the vaginal delivery of Proellex for the treatment of uterine fibroids.

About Arena Pharmaceuticals

Arena Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on developing small molecule drugs across a range of therapeutic areas. The Company has three primary investigational clinical programs: etrasimod (APD334) in Phase II evaluation for ulcerative colitis, APD371 entering Phase II evaluation for the treatment of pain associated with Crohn’s disease, and ralinepag (APD811) in Phase II evaluation for pulmonary arterial hypertension (PAH). The Company’s drug, Lorcaserin, is approved for marketing in the United States and South Korea for the indication of weight management. The Company’s drug candidates in clinical development include APD334 for autoimmune diseases, ralinepag for vascular diseases and APD371 for pain. The Company’s programs under collaboration include nelotanserin for dementia-associated psychosis, temanogrel for thrombotic diseases, and an undisclosed orphan GPCR for central nervous system (CNS) indication(s).

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