Financial Contrast: Pasithea Therapeutics (NASDAQ:KTTA) vs. Galecto (NASDAQ:GLTO)

Pasithea Therapeutics (NASDAQ:KTTA) and Galecto (NASDAQ:GLTO) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Earnings & Valuation

This table compares Pasithea Therapeutics and Galecto”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pasithea Therapeutics	$20,000.00	177.24	-$15.96 million	N/A	N/A
Galecto	N/A	N/A	-$38.35 million	($19.14)	-0.28

Pasithea Therapeutics has higher revenue and earnings than Galecto.

Insider and Institutional Ownership

23.9% of Pasithea Therapeutics shares are held by institutional investors. Comparatively, 14.2% of Galecto shares are held by institutional investors. 16.3% of Pasithea Therapeutics shares are held by company insiders. Comparatively, 11.9% of Galecto shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Pasithea Therapeutics and Galecto’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pasithea Therapeutics	N/A	-81.57%	-74.31%
Galecto	N/A	-76.96%	-66.59%

Volatility & Risk

Pasithea Therapeutics has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Galecto has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Pasithea Therapeutics and Galecto, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pasithea Therapeutics	0	0	0	0	0.00
Galecto	0	0	1	0	3.00

Galecto has a consensus price target of $10.00, indicating a potential upside of 89.39%. Given Galecto’s stronger consensus rating and higher possible upside, analysts clearly believe Galecto is more favorable than Pasithea Therapeutics.

Summary

Galecto beats Pasithea Therapeutics on 6 of the 10 factors compared between the two stocks.

About Pasithea Therapeutics

Pasithea Therapeutics Corp., a biotechnology company, engages in discovery, research, and development of treatments for central nervous system disorders, RASopathies, and other diseases. Its lead product candidate PAS-004, a next-generation macrocyclic mitogen-activated protein kinase, or MEK inhibitor for use in the treatment of a range of RASopathies, including neurofibromatosis type 1 oncology indications. The company intends to develop PAS-003, to treat amyotrophic lateral sclerosis; and PAS-001, to treat schizophrenia. Pasithea Therapeutics Corp. was incorporated in 2020 and is headquartered in Miami Beach, Florida.

About Galecto

Galecto, Inc., a clinical-stage biotechnology company, develops molecules for the treatment of fibrosis, cancer, inflammation, and other related diseases. The company's lead product candidate is GB2064, which is in Phase IIa for the treatment of myelofibrosis. It also develops GB2064, a selective oral small molecule inhibitor of LOXL2 that is in Phase 2a clinical trial for the treatment of fibrotic diseases, including cancer and myelofibrosis; and GB1211, a selective oral galectin-3 inhibitor that is in Phase IIa for the treatment of cancer, as well as in Phase Ib/IIa for fibrosis. Galecto, Inc. was founded in 2011 and is headquartered in Copenhagen, Denmark.