Petros Pharmaceuticals (NASDAQ:PTPI) versus Galapagos (NASDAQ:GLPG) Financial Contrast

Galapagos (NASDAQ:GLPG) and Petros Pharmaceuticals (NASDAQ:PTPI) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Institutional & Insider Ownership

32.5% of Galapagos shares are owned by institutional investors. Comparatively, 12.3% of Petros Pharmaceuticals shares are owned by institutional investors. 2.9% of Galapagos shares are owned by company insiders. Comparatively, 36.4% of Petros Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Galapagos and Petros Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Galapagos	N/A	N/A	N/A
Petros Pharmaceuticals	N/A	-95.40%	-27.43%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Galapagos and Petros Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galapagos	1	2	0	0	1.67
Petros Pharmaceuticals	0	0	1	0	3.00

Galapagos currently has a consensus target price of $34.50, indicating a potential upside of 22.47%. Petros Pharmaceuticals has a consensus target price of $4.00, indicating a potential upside of 1,111.75%. Given Petros Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Petros Pharmaceuticals is more favorable than Galapagos.

Risk & Volatility

Galapagos has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500. Comparatively, Petros Pharmaceuticals has a beta of 2.08, indicating that its stock price is 108% more volatile than the S&P 500.

Earnings & Valuation

This table compares Galapagos and Petros Pharmaceuticals’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galapagos	$261.40 million	7.10	$229.12 million	N/A	N/A
Petros Pharmaceuticals	$4.12 million	0.56	-$8.16 million	($7.37)	-0.04

Galapagos has higher revenue and earnings than Petros Pharmaceuticals.

Summary

Galapagos beats Petros Pharmaceuticals on 6 of the 11 factors compared between the two stocks.

About Galapagos

Galapagos NV, a biotechnology company, develops medicines focusing on oncology and immunology primarily in the United States and Europe. The company's pipeline products comprise GLPG3667 that has completed phase 1b trial; GLPG5101, a CD19 CAR-T product candidate manufactured at point-of-care, currently in Phase1/2 trial in relapsed/refractory non-hodgkin lymphoma; GLPG5201, a CD19 CAR-T product candidates manufactured at point-of-care, currently in phase 1/2 trial in replapsed/refractory chronic lymphocytic leukemia; and GLPG5301, a BCMA CAR-T product candidate manufactured at point-of-care, currently in phase 1/2 in relapsed/refractory multiple myeloma. The company has collaboration agreements with Gilead Sciences, Inc.; and AbbVie S.à r.l. Galapagos NV was incorporated in 1999 and is headquartered in Mechelen, Belgium.

About Petros Pharmaceuticals

Petros Pharmaceuticals, Inc., a pharmaceutical company, focuses on men's health therapeutics in the United States and internationally. It operates through two segments, Prescription Medications and Medical Devices. The company engages in the commercialization and development of Stendra, an PDE-5 inhibitor prescription medication for the treatment of erectile dysfunction (ED). It also develops and commercializes H100, a novel and patented topical formulation candidate for the treatment of acute Peyronie's disease. The company offers men's health products, including vacuum erection devices, penile injections, PreBoost, VenoSeal, and urinary tract infection tests for the treatment of erectile dysfunction. Petros Pharmaceuticals, Inc. is based in New York, New York.