Eterna Therapeutics (NASDAQ:ERNA – Get Free Report) and Galecto (NASDAQ:GLTO – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Risk and Volatility
Eterna Therapeutics has a beta of 4.29, meaning that its share price is 329% more volatile than the S&P 500. Comparatively, Galecto has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.
Profitability
This table compares Eterna Therapeutics and Galecto’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Eterna Therapeutics | -7,513.88% | N/A | -117.48% |
| Galecto | N/A | -76.96% | -66.59% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eterna Therapeutics | 0 | 0 | 0 | 0 | 0.00 |
| Galecto | 0 | 0 | 1 | 0 | 3.00 |
Galecto has a consensus price target of $10.00, suggesting a potential upside of 109.21%. Given Galecto’s stronger consensus rating and higher probable upside, analysts clearly believe Galecto is more favorable than Eterna Therapeutics.
Institutional & Insider Ownership
70.6% of Eterna Therapeutics shares are held by institutional investors. Comparatively, 14.2% of Galecto shares are held by institutional investors. 4.5% of Eterna Therapeutics shares are held by insiders. Comparatively, 11.9% of Galecto shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Eterna Therapeutics and Galecto”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Eterna Therapeutics | $70,000.00 | 23.74 | -$21.67 million | ($8.31) | -0.04 |
| Galecto | N/A | N/A | -$38.35 million | ($19.14) | -0.25 |
Eterna Therapeutics has higher revenue and earnings than Galecto. Galecto is trading at a lower price-to-earnings ratio than Eterna Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
Eterna Therapeutics beats Galecto on 7 of the 13 factors compared between the two stocks.
About Eterna Therapeutics
Eterna Therapeutics Inc., a life science company, provides mRNA cell engineering technologies. Its technologies include mRNA cell reprogramming and gene editing; NoveSlice and UltraSlice gene-editing proteins; and the ToRNAdo mRNA delivery system. The company has a license agreement with Factor Bioscience Limited. Eterna Therapeutics Inc. was founded in 2018 and is based in Cambridge, Massachusetts.
About Galecto
Galecto, Inc., a clinical-stage biotechnology company, develops molecules for the treatment of fibrosis, cancer, inflammation, and other related diseases. The company's lead product candidate is GB2064, which is in Phase IIa for the treatment of myelofibrosis. It also develops GB2064, a selective oral small molecule inhibitor of LOXL2 that is in Phase 2a clinical trial for the treatment of fibrotic diseases, including cancer and myelofibrosis; and GB1211, a selective oral galectin-3 inhibitor that is in Phase IIa for the treatment of cancer, as well as in Phase Ib/IIa for fibrosis. Galecto, Inc. was founded in 2011 and is headquartered in Copenhagen, Denmark.
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