Analyzing Moleculin Biotech (NASDAQ:MBRX) and Ardelyx (NASDAQ:ARDX)

Moleculin Biotech (NASDAQ:MBRX) and Ardelyx (NASDAQ:ARDX) 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, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Profitability

This table compares Moleculin Biotech and Ardelyx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Moleculin Biotech	N/A	-157.44%	-97.16%
Ardelyx	-28.82%	-46.60%	-21.49%

Valuation & Earnings

This table compares Moleculin Biotech and Ardelyx”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Moleculin Biotech	N/A	N/A	-$29.77 million	N/A	N/A
Ardelyx	$251.85 million	5.07	-$66.07 million	($0.30)	-17.97

Moleculin Biotech has higher earnings, but lower revenue than Ardelyx.

Risk and Volatility

Moleculin Biotech has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500. Comparatively, Ardelyx has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Moleculin Biotech and Ardelyx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Moleculin Biotech	0	0	2	0	3.00
Ardelyx	0	2	5	1	2.88

Moleculin Biotech currently has a consensus target price of $24.00, indicating a potential upside of 995.89%. Ardelyx has a consensus target price of $10.42, indicating a potential upside of 93.26%. Given Moleculin Biotech’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Moleculin Biotech is more favorable than Ardelyx.

Institutional and Insider Ownership

15.5% of Moleculin Biotech shares are owned by institutional investors. Comparatively, 58.9% of Ardelyx shares are owned by institutional investors. 7.1% of Moleculin Biotech shares are owned by insiders. Comparatively, 5.9% of Ardelyx shares are owned 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.

About Moleculin Biotech

Moleculin Biotech, Inc., a clinical stage pharmaceutical company, focuses on the development of drug candidates for the treatment of cancers and viruses. Its lead drug candidate is Annamycin, which is in Phase 1B/2 clinical trials for the treatment of relapsed or refractory acute myeloid leukemia (AML) and soft tissue sarcoma metastasized to the lungs. The company is also developing WP1066, an immune/transcription modulator designed to inhibit phosphorylated signal transducer and activator of transcription and other oncogenic transcription factors targeting brain tumors, and pancreatic and other cancers. In addition, it develops WP1220, an analog of WP1066 for the topical treatment of cutaneous T-cell lymphoma; and WP1122 to treat viruses, as well as cancer indications, including brain tumors, and pancreatic and other cancers. The company was incorporated in 2015 and is headquartered in Houston, Texas.

About Ardelyx

Ardelyx, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines to treat gastrointestinal and cardiorenal therapeutic areas in the United States and internationally. The company’s lead product candidate is tenapanor for the treatment of patients with irritable bowel syndrome with constipation. It also develops XPHOZAH, which is in Phase III clinical trial to reduce serum phosphorus in adults with chronic kidney disease (CKD)on dialysis, or hyperphosphatemia; RDX013, a potassium secretagogue, for the treatment of elevated serum potassium, or hyperkalemia, a problem among patients with kidney and/or heart failure; and RDX020, for adult patients with metabolic acidosis, a serious electrolyte disorder. The company has agreements with Kyowa Kirin, Fosun Pharmaceutical Industrial Development Co. Ltd., and Knight Therapeutics, Inc. for the development and commercialization of tenapanor in their respective territories. The company was formerly known as Nteryx, Inc. and changed its name to Ardelyx, Inc. in June 2008. Ardelyx, Inc. was incorporated in 2007 and is headquartered in Waltham, Massachusetts.