Cocrystal Pharma (NASDAQ:COCP) & Synlogic (NASDAQ:SYBX) Critical Analysis

Cocrystal Pharma (NASDAQ:COCP) and Synlogic (NASDAQ:SYBX) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Cocrystal Pharma and Synlogic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cocrystal Pharma	0	0	1	0	3.00
Synlogic	0	4	1	0	2.20

Cocrystal Pharma presently has a consensus target price of $7.00, suggesting a potential upside of 304.62%. Synlogic has a consensus target price of $30.00, suggesting a potential upside of 1,954.79%. Given Synlogic’s higher possible upside, analysts plainly believe Synlogic is more favorable than Cocrystal Pharma.

Profitability

This table compares Cocrystal Pharma and Synlogic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cocrystal Pharma	N/A	-73.89%	-64.03%
Synlogic	-2,284.65%	-194.73%	-112.61%

Valuation & Earnings

This table compares Cocrystal Pharma and Synlogic”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cocrystal Pharma	N/A	N/A	-$17.98 million	($1.77)	-0.98
Synlogic	$3.37 million	5.07	-$57.28 million	($6.72)	-0.22

Cocrystal Pharma has higher earnings, but lower revenue than Synlogic. Cocrystal Pharma is trading at a lower price-to-earnings ratio than Synlogic, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

6.7% of Cocrystal Pharma shares are owned by institutional investors. Comparatively, 63.4% of Synlogic shares are owned by institutional investors. 25.6% of Cocrystal Pharma shares are owned by insiders. Comparatively, 8.0% of Synlogic shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Cocrystal Pharma has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Synlogic has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Summary

Cocrystal Pharma beats Synlogic on 8 of the 12 factors compared between the two stocks.

About Cocrystal Pharma

Cocrystal Pharma, Inc., a biotechnology company, focuses on the discovery and development of antiviral therapeutic treatments for serious and/or chronic viral diseases. It employs structure-based technologies to create antiviral drugs primarily to treat hepatitis C virus (HCV), influenza virus, coronavirus, norovirus, and respiratory virus infections. The company develops CC-31244, a HCV non-nucleoside polymerase inhibitor that has completed Phase II a clinical trial to treat HCV infection; and CC-42344, a PB2 inhibitor that has completed Phase I clinical trial for treating influenza infection. It is also involved in identifying and developing non-nucleoside polymerase inhibitors for norovirus infections. Cocrystal Pharma, Inc. has a license and research collaboration agreement with Merck Sharp & Dohme Corp. to discover and develop proprietary influenza A/B antiviral agents; and a license agreement with Kansas State University Research Foundation to develop antiviral compounds for the treatment of norovirus and coronavirus infections. The company is headquartered in Bothell, Washington.

About Synlogic

Synlogic, Inc., a clinical-stage biopharmaceutical company, engages in the discovery and development of synthetic biotics to treat metabolic diseases in the United States. Its pipeline include SYNB1618, an orally administered, non-systemically absorbed drug candidate to treat phenylketonuria; SYNB1934, an orally administered, non-systemically absorbed drug candidate, which is in Phase III clinical trial to treat phenylketonuria; SYNB1353, an orally administered, non-systemically absorbed drug candidate, which is in Phase I clinical to treat homocystinuria; SYNB8802, an orally administered, non-systemically absorbed drug candidate that is in Phase II clinical trial for the treatment of enteric hyperoxaluria; and SYNB2081 to lower uric acid for the potential treatment of gout. The company has a collaboration agreement with F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc. for the research and pre-clinical development of a synthetic biotic medicine for the treatment of inflammatory bowel disease; and Ginkgo Bioworks, Inc. Synlogic, Inc. is based in Cambridge, Massachusetts.