Contrasting Sophiris Bio (OTCMKTS:SPHS) & Phathom Pharmaceuticals (NASDAQ:PHAT)

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

Volatility & Risk

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Sophiris Bio and Phathom Pharmaceuticals, as provided by MarketBeat.

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

Phathom Pharmaceuticals has a consensus target price of $22.50, suggesting a potential upside of 140.90%. Given Phathom Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Phathom Pharmaceuticals is more favorable than Sophiris Bio.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sophiris Bio	N/A	N/A	N/A	N/A	N/A
Phathom Pharmaceuticals	$680,000.00	939.22	-$201.59 million	($5.69)	-1.64

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

Profitability

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

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

Institutional and Insider Ownership

99.0% of Phathom Pharmaceuticals shares are held by institutional investors. 4.5% of Sophiris Bio shares are held by insiders. Comparatively, 24.1% of Phathom Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

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

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.

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.