Financial Analysis: Dianthus Therapeutics (NASDAQ:DNTH) and Phio Pharmaceuticals (NASDAQ:PHIO)

Phio Pharmaceuticals (NASDAQ:PHIO) and Dianthus Therapeutics (NASDAQ:DNTH) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Institutional & Insider Ownership

57.3% of Phio Pharmaceuticals shares are held by institutional investors. Comparatively, 47.5% of Dianthus Therapeutics shares are held by institutional investors. 0.6% of Phio Pharmaceuticals shares are held by company insiders. Comparatively, 16.6% of Dianthus Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Phio Pharmaceuticals has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Dianthus Therapeutics has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500.

Profitability

This table compares Phio Pharmaceuticals and Dianthus Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phio Pharmaceuticals	N/A	-142.68%	-111.75%
Dianthus Therapeutics	-1,376.42%	-21.03%	-20.18%

Valuation & Earnings

This table compares Phio Pharmaceuticals and Dianthus Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phio Pharmaceuticals	N/A	N/A	-$10.83 million	($19.64)	-0.16
Dianthus Therapeutics	$4.12 million	198.99	-$43.56 million	($5.83)	-4.79

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Phio Pharmaceuticals and Dianthus Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phio Pharmaceuticals	0	0	1	0	3.00
Dianthus Therapeutics	0	0	9	2	3.18

Phio Pharmaceuticals currently has a consensus target price of $36.00, indicating a potential upside of 1,050.16%. Dianthus Therapeutics has a consensus target price of $45.13, indicating a potential upside of 61.62%. Given Phio Pharmaceuticals’ higher probable upside, research analysts plainly believe Phio Pharmaceuticals is more favorable than Dianthus Therapeutics.

Summary

Dianthus Therapeutics beats Phio Pharmaceuticals on 9 of the 14 factors compared between the two stocks.

About Phio Pharmaceuticals

Phio Pharmaceuticals Corp. engages in the development of immuno-oncology therapeutics in the United States. The company is developing PH-762, an INTASYL compound in Phase 1b dose-escalating clinical trials to reduce the expression of cell death protein 1 (PD-1), a protein that inhibits T cells’ ability to kill cancer cells; and PH-762 treated double positive tumor infiltrating lymphocytes, which is in Phase 1 clinical trials to treat advanced melanoma and other advanced solid tumors. It is also developing PH-894, an INTASYL compound in IND enabling studies to silence BRD4, a protein that controls gene expression in both T cells and tumor cells, effecting the immune system and the tumor. The company was formerly known as RXi Pharmaceuticals Corporation and changed its name to Phio Pharmaceuticals Corp. in November 2018. Phio Pharmaceuticals Corp. was incorporated in 2011 and is based in Marlborough, Massachusetts.

About Dianthus Therapeutics

Dianthus Therapeutics, Inc., a clinical-stage biotechnology company, develops complement therapeutics for patients with severe autoimmune and inflammatory diseases. It is developing DNTH103, a monoclonal antibody, which is in Phase 2 clinical trial, for the treatment of generalized myasthenia gravis, multifocal motor neuropathy, and chronic inflammatory demyelinating polyneuropathy. Dianthus Therapeutics, Inc. was founded in 2019 and is headquartered in New York, New York.