Comparing Vanda Pharmaceuticals (NASDAQ:VNDA) & Siga Technologies (NASDAQ:SIGA)

Vanda Pharmaceuticals (NASDAQ:VNDA) and Siga Technologies (NASDAQ:SIGA) are both small-cap healthcare companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.

Volatility & Risk

Vanda Pharmaceuticals has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Siga Technologies has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Earnings and Valuation

This table compares Vanda Pharmaceuticals and Siga Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vanda Pharmaceuticals	$216.10 million	1.15	-$220.47 million	($4.62)	-0.89
Siga Technologies	$94.57 million	2.47	$23.28 million	($0.05)	-64.90

Siga Technologies has lower revenue, but higher earnings than Vanda Pharmaceuticals. Siga Technologies is trading at a lower price-to-earnings ratio than Vanda Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Vanda Pharmaceuticals and Siga Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vanda Pharmaceuticals	1	2	6	0	2.56
Siga Technologies	1	0	0	0	1.00

Vanda Pharmaceuticals currently has a consensus price target of $13.50, indicating a potential upside of 227.27%. Given Vanda Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Vanda Pharmaceuticals is more favorable than Siga Technologies.

Insider & Institutional Ownership

88.1% of Vanda Pharmaceuticals shares are held by institutional investors. Comparatively, 55.4% of Siga Technologies shares are held by institutional investors. 10.7% of Vanda Pharmaceuticals shares are held by company insiders. Comparatively, 2.7% of Siga Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Vanda Pharmaceuticals and Siga Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vanda Pharmaceuticals	-119.87%	-62.70%	-37.53%
Siga Technologies	1.31%	0.40%	0.33%

About Vanda Pharmaceuticals

Vanda Pharmaceuticals Inc. is a biopharmaceutical company focused on developing and commercializing therapies for central nervous system disorders and other conditions with significant unmet medical needs. Founded in 2003 and headquartered in Washington, D.C., the company primarily serves patients and healthcare providers in the United States, with certain products and commercial rights extending to international markets. Vanda’s marketed products include Hetlioz (tasimelteon), a treatment for Non-24-Hour Sleep-Wake Disorder in totally blind individuals and nighttime sleep disturbances associated with Smith-Magenis syndrome.

About Siga Technologies

SIGA Technologies, Inc. is a commercial-stage pharmaceutical company focused on developing and supplying medical countermeasures for high-consequence infectious diseases. Its primary product is TPOXX (tecovirimat), an antiviral medicine developed to treat smallpox. TPOXX targets orthopoxviruses, the virus family that includes variola virus, which causes smallpox, as well as mpox and other related infections. TPOXX has been approved by the U.S. Food and Drug Administration in oral and intravenous formulations for the treatment of smallpox.