Critical Review: Disc Medicine (NASDAQ:IRON) and Vistagen Therapeutics (NASDAQ:VTGN)

Vistagen Therapeutics (NASDAQ:VTGN) and Disc Medicine (NASDAQ:IRON) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.

Volatility & Risk

Vistagen Therapeutics has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Disc Medicine has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Profitability

This table compares Vistagen Therapeutics and Disc Medicine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vistagen Therapeutics	-3,421.85%	-35.12%	-32.35%
Disc Medicine	N/A	-23.78%	-22.62%

Analyst Ratings

This is a breakdown of current ratings and target prices for Vistagen Therapeutics and Disc Medicine, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vistagen Therapeutics	0	0	2	1	3.33
Disc Medicine	0	1	7	0	2.88

Vistagen Therapeutics presently has a consensus price target of $13.50, suggesting a potential upside of 348.50%. Disc Medicine has a consensus price target of $64.13, suggesting a potential upside of 28.43%. Given Vistagen Therapeutics’ stronger consensus rating and higher possible upside, equities analysts plainly believe Vistagen Therapeutics is more favorable than Disc Medicine.

Earnings and Valuation

This table compares Vistagen Therapeutics and Disc Medicine”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vistagen Therapeutics	$971,000.00	83.77	-$29.36 million	($2.07)	-1.45
Disc Medicine	N/A	N/A	-$76.43 million	($3.38)	-14.77

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

Institutional and Insider Ownership

78.4% of Vistagen Therapeutics shares are owned by institutional investors. Comparatively, 83.7% of Disc Medicine shares are owned by institutional investors. 1.0% of Vistagen Therapeutics shares are owned by insiders. Comparatively, 4.2% of Disc Medicine shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Vistagen Therapeutics beats Disc Medicine on 8 of the 14 factors compared between the two stocks.

About Vistagen Therapeutics

Vistagen Therapeutics, Inc., a late clinical-stage biopharmaceutical company, primarily focus to transform the treatment landscape for individuals living with anxiety, depression, and other central nervous system (CNS) disorders. The company's pipeline includes six clinical stage product candidates, including five investigational agents belonging to drugs known as pherines. Its product pipeline comprises PH94B, a fasedienol nasal spray, which is in Phase III development for the treatment of social anxiety disorder; and PH10, a Ituvone nasal spray which is in Phase II development for the treatment of major depressive disorder. In addition, the company is also developing PH15, an early-stage investigational synthetic neuroactive steroid for the treatment of cognition improvement; PH80, an odorless and tasteless synthetic investigational pherine for the treatment of menopausal hot flashes and migraine; PH284, an early-stage investigational synthetic neuroactive steroid for the treatment of wasting syndrome Cachexia; and AV-101, an oral nmdr glycine site antagonist for depression and neurological disorders. Further, it has a license and collaboration agreement with EverInsight Therapeutics Inc. to develop and commercialize to address ophthalmologic and CNS disorders. The company was founded in 1998 and is headquartered in South San Francisco, California.

About Disc Medicine

Disc Medicine, Inc., together with its subsidiaries, a clinical-stage biopharmaceutical company, engages in the discovery, development, and commercialization of novel treatments for patients suffering from serious hematologic diseases in the United States. The company has assembled a portfolio of clinical and preclinical product candidates that aim to modify fundamental biological pathways associated with the formation and function of red blood cells, primarily heme biosynthesis and iron homeostasis. Its pipeline includes bitopertin for the treatment of erythropoietic porphyrias, including erythropoietic protoporphyria, X-linked protoporphyria, and diamond-blackfan anemia; DISC-0974 for the treatment of anemia of myelofibrosis, and anemia of chronic kidney disease; and DISC-3405 for the treatment of polycythemia vera, and other hematologic disorders. The company's preclinical programs include DISC-0998, for the treatment of anemia associated with inflammatory diseases. Disc Medicine, Inc. was founded in 2017 and is headquartered in Watertown, Massachusetts.