Comparing Hoth Therapeutics (NASDAQ:HOTH) and Entrada Therapeutics (NASDAQ:TRDA)

Entrada Therapeutics (NASDAQ:TRDA) and Hoth Therapeutics (NASDAQ:HOTH) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings for Entrada Therapeutics and Hoth Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Entrada Therapeutics	1	1	2	1	2.60
Hoth Therapeutics	1	0	2	0	2.33

Entrada Therapeutics presently has a consensus target price of $20.67, suggesting a potential upside of 101.53%. Hoth Therapeutics has a consensus target price of $4.50, suggesting a potential upside of 287.93%. Given Hoth Therapeutics’ higher possible upside, analysts clearly believe Hoth Therapeutics is more favorable than Entrada Therapeutics.

Earnings & Valuation

This table compares Entrada Therapeutics and Hoth Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Entrada Therapeutics	$210.78 million	1.86	$65.63 million	($2.49)	-4.12
Hoth Therapeutics	N/A	N/A	-$8.19 million	($1.06)	-1.09

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

Profitability

This table compares Entrada Therapeutics and Hoth Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Entrada Therapeutics	-168.16%	-26.42%	-22.08%
Hoth Therapeutics	N/A	-133.69%	-123.43%

Risk & Volatility

Entrada Therapeutics has a beta of -0.08, suggesting that its share price is 108% less volatile than the S&P 500. Comparatively, Hoth Therapeutics has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.

Insider & Institutional Ownership

86.4% of Entrada Therapeutics shares are owned by institutional investors. Comparatively, 7.1% of Hoth Therapeutics shares are owned by institutional investors. 8.1% of Entrada Therapeutics shares are owned by insiders. Comparatively, 6.9% of Hoth Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Entrada Therapeutics beats Hoth Therapeutics on 8 of the 13 factors compared between the two stocks.

About Entrada Therapeutics

Entrada Therapeutics, Inc., a clinical-stage biotechnology company, develops endosomal escape vehicle (EEV) therapeutics for the treatment of multiple neuromuscular diseases. Its EEV platform develops a portfolio of oligonucleotide, antibody, and enzyme-based programs. Its therapeutic candidates, which include ENTR-601-44, which is in Phase I clinical trial for the treatment of Duchenne muscular dystrophy; and ENTR-701, which is in Phase 1/2 clinical trial for the treatment of myotonic dystrophy type 1. The company also offers ENTR-601-45 and ENTR-601-50, which are in preclinical trail for the treatment of Duchenne muscular dystrophy; and ENTR-501, an intracellular thymidine phosphorylase enzyme replacement therapy, which is in preclinical trail for the treatment of mitochondrial neurogastrointestinal encephalomyopathy. Entrada Therapeutics, Inc. has a strategic collaboration and license agreement with Vertex Pharmaceuticals Incorporated to research, develop, manufacture, and commercialize ENTR-701. The company was formerly known as CycloPorters, Inc. and changed its name to Entrada Therapeutics, Inc. in October 2017. Entrada Therapeutics, Inc. was incorporated in 2016 and is headquartered in Boston, Massachusetts.

About Hoth Therapeutics

Hoth Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing therapies for unmet medical needs. It is involved in the development of HT-001, a topical formulation, which is in Phase II clinical trial for the treatment of patients with rash and skin disorders associated with initial and repeat courses of tyrosine kinase epidermal growth factor receptor inhibitor therapy; HT-KIT to treat mast-cell derived cancers and anaphylaxis; HT-TBI to treat traumatic brain injury and ischemic stroke; HT-ALZ for the treatment and/or prevention of Alzheimer's or other neuroinflammatory diseases; HT-004 for treatment of asthma and allergies using inhalational administration; HT-003 for the treatment of acne and psoriasis, as well as inflammatory bowel diseases; and HT-002, a novel peptide for treating COVID-19. The company is also developing BioLexa Platform, a proprietary, patented, drug compound platform which is in Phase I clinical trial for the treatment of eczema; and HT-005 for treating patients with lupus, as well as a diagnostic device through a mobile device. The company has license agreements with the George Washington University; Isoprene Pharmaceuticals, Inc.; Virginia Commonwealth University; the North Carolina State University; Chelexa BioSciences, Inc. and the University of Cincinnati; Zylö Therapeutics, Inc.; and Voltron Therapeutics, Inc. It also has a research collaboration agreement with Weill Cornell Medicine to develop HT-003. Hoth Therapeutics, Inc. was incorporated in 2017 and is based in New York, New York.