Bicycle Therapeutics (NASDAQ:BCYC – Get Free Report) and Cabaletta Bio (NASDAQ:CABA – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
Institutional and Insider Ownership
86.2% of Bicycle Therapeutics shares are held by institutional investors. 8.5% of Bicycle Therapeutics shares are held by insiders. Comparatively, 6.4% of Cabaletta Bio shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Bicycle Therapeutics and Cabaletta Bio”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bicycle Therapeutics | $72.86 million | 4.50 | -$218.96 million | ($3.15) | -1.49 |
| Cabaletta Bio | N/A | N/A | -$167.86 million | ($2.28) | -1.68 |
Cabaletta Bio has lower revenue, but higher earnings than Bicycle Therapeutics. Cabaletta Bio is trading at a lower price-to-earnings ratio than Bicycle Therapeutics, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Bicycle Therapeutics has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, Cabaletta Bio has a beta of 3.18, suggesting that its share price is 218% more volatile than the S&P 500.
Profitability
This table compares Bicycle Therapeutics and Cabaletta Bio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bicycle Therapeutics | -344.95% | -35.74% | -29.54% |
| Cabaletta Bio | N/A | -121.73% | -90.19% |
Analyst Ratings
This is a summary of current ratings and target prices for Bicycle Therapeutics and Cabaletta Bio, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bicycle Therapeutics | 1 | 3 | 5 | 0 | 2.44 |
| Cabaletta Bio | 1 | 0 | 6 | 0 | 2.71 |
Bicycle Therapeutics presently has a consensus price target of $14.00, indicating a potential upside of 197.87%. Cabaletta Bio has a consensus price target of $17.00, indicating a potential upside of 345.03%. Given Cabaletta Bio’s stronger consensus rating and higher probable upside, analysts clearly believe Cabaletta Bio is more favorable than Bicycle Therapeutics.
Summary
Cabaletta Bio beats Bicycle Therapeutics on 7 of the 13 factors compared between the two stocks.
About Bicycle Therapeutics
Bicycle Therapeutics plc, a clinical-stage biopharmaceutical company, develops a class of medicines for diseases that are underserved by existing therapeutics in the United States and the United Kingdom. Its product pipeline comprising BT8009, a bicycle toxin conjugate (BTC) which is in phase I/II/III clinical trial for the treatment of high nectin-4 expressing tumors; BT5528, a BTC which is in phase I/II clinical trial for the treatment of Ephrin type A receptor 2 expressing tumor; BT7480, a Bicycle TICA molecule which is in phase I/II targeting Nectin-4 and agonizing CD137; and BT7455, a Bicycle TICA molecule targeting Ephrin type A receptor 2 and CD137 and is in preclinical trial. The company also developing BT1718, a bicycle toxin conjugate (BTC), which is in Phase I/IIa clinical trials targeting tumors that express Membrane Type 1 matrix metalloprotease; and BT7401, a multivalent bicycle CD137 agonist which is in phase IIa to treat advanced solid tumors. In addition, it develops Novel anti-infective, which is in preclinical trial targeting anti-infectives disease; CNS targets, which is in preclinical trial targeting CNS disease; and Novel neuromuscular targets, which is in preclinical trial targeting neuromuscular disease. Further, the company collaborates with biopharmaceutical companies and organizations to develop programs in therapeutic areas. It has collaboration and license agreement with Bayer Consumer Care AG; Novartis Pharma AG; Cancer Research UK; Cancer Research Technology Ltd; and Oxurion NV. Bicycle Therapeutics plc was incorporated in 2009 and is headquartered in Cambridge, the United Kingdom.
About Cabaletta Bio
Cabaletta Bio, Inc., a clinical-stage biotechnology company, focuses on the discovery and development of engineered T cell therapies for patients with B cell-mediated autoimmune diseases. The company's lead product candidate is CABA-201, a fully human anti-CD19 binder for the treatment of Phase 1/2 clinical trials in dermatomyositis, anti-synthetase syndrome, immune-mediated necrotizing myopathy, lupus nephritis, non-renal systemic lupus erythematosus, systemic sclerosis, and generalized myasthenia gravis. It also develops DSG3-CAART, which is in Phase I/II clinical trial for the treatment of mucosal pemphigus vulgaris; and MuSK-CAART, an investigational cell therapy that is in Phase I/II clinical trial for treating patients with anti- muscle-specific kinase antibody positive myasthenia gravis. It has a collaboration with the University of Pennsylvania and the Children's Hospital of Philadelphia; Nanjing IASO Biotherapeutics Co., Ltd; Oxford Biomedica; and WuXi Advanced Therapies, Inc. The company was formerly known as Tycho Therapeutics, Inc. and changed its name to Cabaletta Bio, Inc. in August 2018. Cabaletta Bio, Inc. was incorporated in 2017 and is headquartered in Philadelphia, Pennsylvania.
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