Analyzing Processa Pharmaceuticals (NASDAQ:PCSA) & Ventyx Biosciences (NASDAQ:VTYX)

Processa Pharmaceuticals (NASDAQ:PCSA) and Ventyx Biosciences (NASDAQ:VTYX) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations for Processa Pharmaceuticals and Ventyx Biosciences, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Processa Pharmaceuticals	0	1	2	0	2.67
Ventyx Biosciences	0	4	5	0	2.56

Processa Pharmaceuticals presently has a consensus target price of $8.00, suggesting a potential upside of 280.95%. Ventyx Biosciences has a consensus target price of $15.75, suggesting a potential upside of 578.88%. Given Ventyx Biosciences’ higher possible upside, analysts plainly believe Ventyx Biosciences is more favorable than Processa Pharmaceuticals.

Profitability

This table compares Processa Pharmaceuticals and Ventyx Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Processa Pharmaceuticals	N/A	-130.15%	-115.92%
Ventyx Biosciences	N/A	-65.94%	-59.87%

Risk & Volatility

Processa Pharmaceuticals has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Ventyx Biosciences has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Insider & Institutional Ownership

91.9% of Processa Pharmaceuticals shares are held by institutional investors. Comparatively, 97.9% of Ventyx Biosciences shares are held by institutional investors. 22.2% of Processa Pharmaceuticals shares are held by company insiders. Comparatively, 18.2% of Ventyx Biosciences shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Processa Pharmaceuticals and Ventyx Biosciences’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Processa Pharmaceuticals	N/A	N/A	-$11.12 million	($4.95)	-0.42
Ventyx Biosciences	N/A	N/A	-$192.96 million	($3.24)	-0.72

Ventyx Biosciences is trading at a lower price-to-earnings ratio than Processa Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Summary

Ventyx Biosciences beats Processa Pharmaceuticals on 6 of the 11 factors compared between the two stocks.

About Processa Pharmaceuticals

Processa Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, develops chemotherapy drugs to improve the safety and efficacy of cancer treatment. Its drugs are modifications of existing FDA-approved oncology drugs resulting in an alteration of the metabolism and/or distribution of drugs while maintaining the existing mechanisms of killing the cancer cells. The company's pipeline includes three chemotherapy drugs comprising Gemcitabine, PCS3117 that has completed Phase 2a clinical trials to treat pancreatic, biliary tract, lung, ovarian, breast, and other cancers; Capecitabine, a combination of PCS6422 and capecitabine that has completed Phase 1b clinical trials to treat metastatic colorectal, gastrointestinal, breast, pancreatic, and other cancers; and Irinotecan, PCS11T that is in pre-clinical studies to treat lung, colorectal, gastrointestinal, pancreatic, and other cancers. It also develops non-oncology drugs consisting of PCS12852 for treatment of gastroparesis; and PCS499 to treat patients with ulcerative and non-ulcerative necrobiosis lipoidica. The company has license agreements with Elion Oncology, Inc.; Ocuphire Pharma, Inc.; Aposense, Ltd.; Yuhan Corporation; and CoNCERT Pharmaceuticals, Inc. Processa Pharmaceuticals, Inc. was founded in 2011 and is based in Hanover, Maryland.

About Ventyx Biosciences

Ventyx Biosciences, Inc., a clinical-stage biopharmaceutical company, develops small molecule product candidates to address a range of inflammatory diseases. The company's lead clinical product candidate is VTX958, a selective allosteric tyrosine kinase type 2 inhibitor for psoriasis, psoriatic arthritis, and Crohn's disease. It is also developing VTX002, a sphingosine 1 phosphate receptor modulator that is in Phase II clinical trials for the treatment of ulcerative colitis; and VTX2735, a peripheral-targeted NOD-like receptor protein 3 inflammasome inhibitor to treat patients with cryopyrin-associated periodic syndrome. In addition, the company develops VTX3232, a CNS-penetrant NLRP3 inhibitor. Ventyx Biosciences, Inc. was incorporated in 2018 and is based in San Diego, California.