Comparing Eyepoint Pharmaceuticals (NASDAQ:EYPT) & Phathom Pharmaceuticals (NASDAQ:PHAT)

Eyepoint Pharmaceuticals (NASDAQ:EYPT) and Phathom Pharmaceuticals (NASDAQ:PHAT) are both small-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eyepoint Pharmaceuticals	$31.37 million	8.93	-$231.96 million	($3.74)	-0.87
Phathom Pharmaceuticals	$175.11 million	3.20	-$221.25 million	($1.28)	-5.41

Phathom Pharmaceuticals has higher revenue and earnings than Eyepoint Pharmaceuticals. Phathom Pharmaceuticals is trading at a lower price-to-earnings ratio than Eyepoint Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Eyepoint Pharmaceuticals has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500. Comparatively, Phathom Pharmaceuticals has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.

Insider & Institutional Ownership

99.4% of Eyepoint Pharmaceuticals shares are owned by institutional investors. Comparatively, 99.0% of Phathom Pharmaceuticals shares are owned by institutional investors. 5.1% of Eyepoint Pharmaceuticals shares are owned by insiders. Comparatively, 9.3% of Phathom Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Eyepoint Pharmaceuticals	-10,994.73%	-135.81%	-108.35%
Phathom Pharmaceuticals	-41.34%	N/A	-20.81%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Eyepoint Pharmaceuticals and Phathom Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eyepoint Pharmaceuticals	1	6	4	0	2.27
Phathom Pharmaceuticals	1	1	6	1	2.78

Eyepoint Pharmaceuticals currently has a consensus price target of $25.70, suggesting a potential upside of 690.77%. Phathom Pharmaceuticals has a consensus price target of $21.25, suggesting a potential upside of 207.08%. Given Eyepoint Pharmaceuticals’ higher probable upside, equities analysts clearly believe Eyepoint Pharmaceuticals is more favorable than Phathom Pharmaceuticals.

Summary

Phathom Pharmaceuticals beats Eyepoint Pharmaceuticals on 10 of the 15 factors compared between the two stocks.

About Eyepoint Pharmaceuticals

EyePoint Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, engages in developing and commercializing therapeutics to improve the lives of patients with serious retinal diseases. The company's pipeline leverages its proprietary bioerodible Durasert E technology for sustained intraocular drug delivery. Its lead product candidate is EYP-1901, an investigational sustained delivery treatment for VEGF-mediated retinal diseases combining vorolanib, a selective and patent-protected tyrosine kinase inhibitor with Durasert E which is in Phase 2 clinical trials for wet age-related macular degeneration (wet AMD), non-proliferative diabetic retinopathy (NPDR), and diabetic macular edema (DME). The company's pipeline programs also include EYP-2301, a promising TIE-2 agonist formulated in Durasert E to potentially improve outcomes in serious retinal diseases. The company was formerly known as pSivida Corp. and changed its name to EyePoint Pharmaceuticals, Inc. in March 2018. EyePoint Pharmaceuticals, Inc. was incorporated in 1987 and is headquartered in Watertown, Massachusetts.

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.