Critical Analysis: Quoin Pharmaceuticals (NASDAQ:QNRX) & Phathom Pharmaceuticals (NASDAQ:PHAT)

Quoin Pharmaceuticals (NASDAQ:QNRX) and Phathom Pharmaceuticals (NASDAQ:PHAT) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Profitability

This table compares Quoin Pharmaceuticals and Phathom Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quoin Pharmaceuticals	N/A	-125.60%	-64.77%
Phathom Pharmaceuticals	-1,292.14%	N/A	-79.57%

Volatility and Risk

Quoin Pharmaceuticals has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500. Comparatively, Phathom Pharmaceuticals has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Insider & Institutional Ownership

8.6% of Quoin Pharmaceuticals shares are held by institutional investors. Comparatively, 99.0% of Phathom Pharmaceuticals shares are held by institutional investors. 3.7% of Quoin Pharmaceuticals shares are held by insiders. Comparatively, 24.1% of Phathom Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Quoin Pharmaceuticals and Phathom Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quoin Pharmaceuticals	N/A	N/A	-$8.69 million	($2.32)	-0.09
Phathom Pharmaceuticals	$55.25 million	6.45	-$201.59 million	($5.35)	-0.96

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Quoin Pharmaceuticals and Phathom Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quoin Pharmaceuticals	0	0	0	0	0.00
Phathom Pharmaceuticals	0	1	4	1	3.00

Phathom Pharmaceuticals has a consensus price target of $22.17, indicating a potential upside of 332.94%. Given Phathom Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Phathom Pharmaceuticals is more favorable than Quoin Pharmaceuticals.

Summary

Phathom Pharmaceuticals beats Quoin Pharmaceuticals on 8 of the 14 factors compared between the two stocks.

About Quoin Pharmaceuticals

Quoin Pharmaceuticals, Ltd., a clinical stage specialty pharmaceutical company, focuses on the development and commercialization of therapeutic products for rare and orphan diseases. Its lead product is QRX003, a topical lotion to treat Netherton Syndrome (NS). The company is also developing QRX004 for the treatment of recessive dystrophic epidermolysis bullosa; QRX007 to treat NS; and QRX008 for the treatment of scleroderma. It has a research agreement with Queensland University of Technology; a license agreement with Skinvisible Inc.; consulting agreements with Axella Research LLC; and a Master Service Agreement with Therapeutics Inc. The company was founded in 2018 and is based in Ashburn, Virginia.

About Phathom Pharmaceuticals

Phathom Pharmaceuticals, Inc., biopharmaceutical company, focuses on developing and commercializing treatments for gastrointestinal diseases. The company has the rights in the United States, Europe, and Canada for an investigational potassium-competitive acid blocker (P-CAB) that blocks acid secretion in the stomach. It is also developing vonoprazan for the treatment of erosive gastroesophageal reflux disease; and in combination with antibiotics for the treatment of Helicobacter pylori infection. The company was incorporated in 2018 and is headquartered in Florham Park, New Jersey.