Comparing Foghorn Therapeutics (NASDAQ:FHTX) and Estrella Immunopharma (NASDAQ:ESLA)

Estrella Immunopharma (NASDAQ:ESLA) and Foghorn Therapeutics (NASDAQ:FHTX) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Risk and Volatility

Estrella Immunopharma has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Foghorn Therapeutics has a beta of 3.04, suggesting that its share price is 204% more volatile than the S&P 500.

Profitability

This table compares Estrella Immunopharma and Foghorn Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Estrella Immunopharma	N/A	-1,132.38%	-411.91%
Foghorn Therapeutics	-294.16%	N/A	-29.62%

Institutional & Insider Ownership

0.4% of Estrella Immunopharma shares are owned by institutional investors. Comparatively, 61.6% of Foghorn Therapeutics shares are owned by institutional investors. 55.1% of Estrella Immunopharma shares are owned by company insiders. Comparatively, 7.6% of Foghorn Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Estrella Immunopharma and Foghorn Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Estrella Immunopharma	N/A	N/A	N/A	($0.34)	-4.88
Foghorn Therapeutics	$22.60 million	13.11	-$86.62 million	($1.13)	-4.64

Estrella Immunopharma has higher earnings, but lower revenue than Foghorn Therapeutics. Estrella Immunopharma is trading at a lower price-to-earnings ratio than Foghorn Therapeutics, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Estrella Immunopharma and Foghorn Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Estrella Immunopharma	1	0	1	0	2.00
Foghorn Therapeutics	1	0	6	2	3.00

Estrella Immunopharma currently has a consensus price target of $16.00, indicating a potential upside of 863.86%. Foghorn Therapeutics has a consensus price target of $10.75, indicating a potential upside of 105.15%. Given Estrella Immunopharma’s higher probable upside, equities analysts clearly believe Estrella Immunopharma is more favorable than Foghorn Therapeutics.

Summary

Foghorn Therapeutics beats Estrella Immunopharma on 9 of the 13 factors compared between the two stocks.

About Estrella Immunopharma

Estrella Immunopharma, Inc., a preclinical-stage biopharmaceutical company, develops T-cell therapies for blood cancers and solid tumors in the United States. The company's lead product candidates include EB103 for the treatment of diffuse large B-cell lymphoma and is in pre clinical trial; and EB104 to treat diffuse large B-cell lymphoma and acute lymphocytic leukemia. It has a collaborative partnership with Imugene Limited for the development of solid tumor treatments using Imugene's product candidate CF33-CD19t in conjunction with EB103. Estrella Immunopharma, Inc. is based in EmeryVille, California.

About Foghorn Therapeutics

Foghorn Therapeutics Inc., a clinical-stage biopharmaceutical company, engages in the discovery and development of medicines targeting genetically determined dependencies within the chromatin regulatory system in the United States. The company uses its proprietary Gene Traffic Control platform to identify, validate, and potentially drug targets within the system. It develops FHD-286, a small molecule inhibitor of the enzymatic activity of BRG1 and BRM that is in phase I for the treatment of relapsed and/or refractory acute myeloid leukemia/myelodysplastic syndrome. The company is also developing therapies for mutant cancers, such as Non-Small Cell Lung, bladder, endometrial, colorectal, and melanoma cancers; and dependent cancers, including prostate cancer and diffuse large b-cell lymphoma. It has a research collaboration and license agreement with Merck Sharp & Dohme Corp. to discover and develop novel oncology therapeutics against a transcription factor target; and Eli Lilly and Company for developing FHD-909, a selective ATPase inhibitor of BRM. Foghorn Therapeutics Inc. was incorporated in 2015 and is headquartered in Cambridge, Massachusetts.