Comparing Skye Bioscience (NASDAQ:SKYE) & Achaogen (OTCMKTS:AKAOQ)

Achaogen (OTCMKTS:AKAOQ) and Skye Bioscience (NASDAQ:SKYE) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Insider and Institutional Ownership

21.1% of Skye Bioscience shares are held by institutional investors. 7.8% of Achaogen shares are held by company insiders. Comparatively, 3.0% of Skye Bioscience shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Achaogen has a beta of -0.81, suggesting that its stock price is 181% less volatile than the S&P 500. Comparatively, Skye Bioscience has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Achaogen and Skye Bioscience, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Achaogen	0	0	0	0	0.00
Skye Bioscience	0	0	6	0	3.00

Skye Bioscience has a consensus target price of $18.67, indicating a potential upside of 397.78%. Given Skye Bioscience’s stronger consensus rating and higher possible upside, analysts plainly believe Skye Bioscience is more favorable than Achaogen.

Profitability

This table compares Achaogen and Skye Bioscience’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Achaogen	N/A	N/A	N/A
Skye Bioscience	N/A	-45.78%	-37.44%

Earnings & Valuation

This table compares Achaogen and Skye Bioscience”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Achaogen	$8.73 million	0.14	-$186.51 million	N/A	N/A
Skye Bioscience	N/A	N/A	-$37.65 million	N/A	N/A

Skye Bioscience has lower revenue, but higher earnings than Achaogen.

Summary

Skye Bioscience beats Achaogen on 6 of the 10 factors compared between the two stocks.

About Achaogen

Achaogen, Inc., a biopharmaceutical company, focuses on the development and commercialization of antibacterial agents for multi-drug resistant (MDR) gram-negative infections in the United States. The company is principally developing plazomicin for the treatment of serious bacterial infections due to MDR enterobacteriaceae comprising carbapenem-resistant enterobacteriaceae. It is also involved in the development of antibacterial candidate C-Scape, an orally-administered combination of clavulanate and ceftibuten, which targets serious bacterial infections due to expanded spectrum beta-lactamases producing enterobacteriaceae. The company has license and collaboration agreements with Thermo Fisher Scientific, Inc. to develop and commercialize an assay to support plazomicin; Crystal Biosciences, Inc. to discover monoclonal antibodies against multiple targets; Ionis Pharmaceuticals, Inc. for certain patents relating to aminoglycoside antibacterial compounds and related know-how to develop and commercialize certain novel aminoglycoside antibacterial compounds; and Hovione Limited manufacture the active pharmaceutical ingredient for plazomicin. The company was incorporated in 2002 and is based in South San Francisco, California. On April 15, 2019, Achaogen, Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The plan was later approved as Chapter 11 liquidation on May 29, 2020.

About Skye Bioscience

Skye Bioscience, Inc., a clinical stage pharmaceutical company, discovers, develops, and commercializes cannabinoid-based molecules for the treatment of infectious diseases. The company's lead product candidate is SBI-100 used in the treatment of glaucoma and ocular hypertension. It is also developing SBI-200 to treat and manage various eye diseases, including uveitis, dry eye syndrome, macular degeneration and diabetic retinopathy. It has license agreement with university of Mississippi. The company was formerly known as Emerald Bioscience, Inc. and changed its name to Skye Bioscience, Inc. in January 2021. The company is headquartered in San Diego, California.