Solid Biosciences (NASDAQ:SLDB) and Rapt Therapeutics (NASDAQ:RAPT) Head to Head Contrast

Rapt Therapeutics (NASDAQ:RAPT) and Solid Biosciences (NASDAQ:SLDB) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Profitability

This table compares Rapt Therapeutics and Solid Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rapt Therapeutics	N/A	-61.81%	-54.73%
Solid Biosciences	N/A	-71.54%	-58.27%

Risk & Volatility

Rapt Therapeutics has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, Solid Biosciences has a beta of 2.67, suggesting that its share price is 167% more volatile than the S&P 500.

Insider and Institutional Ownership

99.1% of Rapt Therapeutics shares are owned by institutional investors. Comparatively, 81.5% of Solid Biosciences shares are owned by institutional investors. 2.4% of Rapt Therapeutics shares are owned by insiders. Comparatively, 1.9% of Solid Biosciences shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Rapt Therapeutics and Solid Biosciences”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rapt Therapeutics	N/A	N/A	-$129.87 million	($11.06)	-5.22
Solid Biosciences	N/A	N/A	-$124.70 million	($2.49)	-2.49

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

Analyst Recommendations

This is a breakdown of current recommendations for Rapt Therapeutics and Solid Biosciences, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rapt Therapeutics	1	10	1	1	2.15
Solid Biosciences	1	0	10	0	2.82

Rapt Therapeutics currently has a consensus price target of $48.44, suggesting a potential downside of 16.07%. Solid Biosciences has a consensus price target of $14.70, suggesting a potential upside of 137.48%. Given Solid Biosciences’ stronger consensus rating and higher probable upside, analysts plainly believe Solid Biosciences is more favorable than Rapt Therapeutics.

Summary

Solid Biosciences beats Rapt Therapeutics on 7 of the 12 factors compared between the two stocks.

About Rapt Therapeutics

RAPT Therapeutics, Inc., a clinical-stage immunology-based biopharmaceutical company, focuses on discovery, development, and commercialization of oral small molecule therapies for patients with unmet needs in oncology and inflammatory diseases in the United States. The company's lead inflammation drug candidate is zelnecirnon (RPT193), a C-C motif chemokine receptor 4 (CCR4) antagonist that selectively inhibit the migration of type 2 T helper cells into inflamed tissues. Its lead oncology drug candidate is tivumecirnon (FLX475), an oral small molecule CCR4 antagonist that is in the Phase 1/2 clinical trial to investigate as a monotherapy and in combination with pembrolizumab in patients with advanced cancer. The company was formerly known as FLX Bio, Inc. and changed its name to RAPT Therapeutics, Inc. in May 2019. RAPT Therapeutics, Inc. was incorporated in 2015 and is headquartered in South San Francisco, California. RAPT Therapeutics, Inc. operates as a subsidiary of Bristol-Myers Squibb Company

About Solid Biosciences

Solid Biosciences Inc., a life science company, develops therapies for neuromuscular and cardiac diseases in the United States. The company's lead product candidate is SGT-003, a gene transfer candidate for the treatment of Duchenne muscular dystrophy; and SGT-501 to treat Catecholaminergic polymorphic ventricular tachycardia. It is also developing AVB-401 for the treatment of BAG3-mediated dilated cardiomyopathy; SGT-601 to treat a rare cardiac disease characterized by mutations in the gene that codes for cardiac troponin T protein, which helps coordinate contraction of the heart muscle; SGT-701 for treatment of rare inherited disease characterized by mutations in the RBM20 gene, a cardiac splicing factor that regulates alternative splicing, and codes for RNA binding motif protein 20; and AVB-202-TT to treat Friedreich's ataxia, as well as other drugs for the treatment of cardiac and other diseases. In addition, the company is involved in developing platform technologies, including capsid libraries and dual gene expression, a technology for packaging multiple transgenes into one capsid. The company has collaboration and license agreement with Ultragenyx Pharmaceutical Inc. to develop and commercialize new gene therapies for Duchenne; and a license agreement with the University of Washington, University of Missouri, and University of Florida. Solid Biosciences Inc. was incorporated in 2013 and is headquartered in Charlestown, Massachusetts.