Analyzing Sophiris Bio (OTCMKTS:SPHS) and Phathom Pharmaceuticals (NASDAQ:PHAT)

Phathom Pharmaceuticals (NASDAQ:PHAT) and Sophiris Bio (OTCMKTS:SPHS) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Volatility and Risk

Phathom Pharmaceuticals has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Sophiris Bio has a beta of 1.94, indicating that its stock price is 94% more volatile than the S&P 500.

Profitability

This table compares Phathom Pharmaceuticals and Sophiris Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phathom Pharmaceuticals	-1,292.14%	N/A	-79.57%
Sophiris Bio	N/A	N/A	N/A

Valuation and Earnings

This table compares Phathom Pharmaceuticals and Sophiris Bio”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phathom Pharmaceuticals	$680,000.00	893.97	-$201.59 million	($5.69)	-1.56
Sophiris Bio	N/A	N/A	N/A	N/A	N/A

Sophiris Bio has lower revenue, but higher earnings than Phathom Pharmaceuticals.

Insider and Institutional Ownership

99.0% of Phathom Pharmaceuticals shares are held by institutional investors. 24.1% of Phathom Pharmaceuticals shares are held by company insiders. Comparatively, 4.5% of Sophiris Bio shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Phathom Pharmaceuticals and Sophiris Bio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phathom Pharmaceuticals	0	1	3	0	2.75
Sophiris Bio	0	0	0	0	0.00

Phathom Pharmaceuticals currently has a consensus target price of $22.50, indicating a potential upside of 153.09%. Given Phathom Pharmaceuticals’ stronger consensus rating and higher possible upside, research analysts clearly believe Phathom Pharmaceuticals is more favorable than Sophiris Bio.

Summary

Phathom Pharmaceuticals beats Sophiris Bio on 6 of the 9 factors compared between the two stocks.

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.

About Sophiris Bio

Sophiris Bio, Inc. is a clinical-stage biopharmaceutical company, which engages in the development of products for the treatment of urological diseases. The company was founded by James L. Heppell in May 2003 and is headquartered in La Jolla, CA.