Compass Therapeutics (NASDAQ:CMPX – Get Free Report) and Kura Oncology (NASDAQ:KURA – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Risk and Volatility
Compass Therapeutics has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Kura Oncology has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500.
Insider and Institutional Ownership
68.4% of Compass Therapeutics shares are held by institutional investors. 29.8% of Compass Therapeutics shares are held by insiders. Comparatively, 6.4% of Kura Oncology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Compass Therapeutics | 1 | 0 | 9 | 1 | 2.91 |
| Kura Oncology | 1 | 4 | 7 | 0 | 2.50 |
Compass Therapeutics currently has a consensus target price of $12.90, indicating a potential upside of 139.33%. Kura Oncology has a consensus target price of $26.57, indicating a potential upside of 121.61%. Given Compass Therapeutics’ stronger consensus rating and higher possible upside, equities analysts plainly believe Compass Therapeutics is more favorable than Kura Oncology.
Profitability
This table compares Compass Therapeutics and Kura Oncology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Compass Therapeutics | N/A | -48.89% | -42.47% |
| Kura Oncology | -208.48% | -65.42% | -30.59% |
Earnings & Valuation
This table compares Compass Therapeutics and Kura Oncology”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Compass Therapeutics | $850,000.00 | 1,127.84 | -$49.38 million | ($0.45) | -11.98 |
| Kura Oncology | $53.88 million | 19.36 | -$173.98 million | ($2.48) | -4.83 |
Compass Therapeutics has higher earnings, but lower revenue than Kura Oncology. Compass Therapeutics is trading at a lower price-to-earnings ratio than Kura Oncology, indicating that it is currently the more affordable of the two stocks.
Summary
Compass Therapeutics beats Kura Oncology on 12 of the 15 factors compared between the two stocks.
About Compass Therapeutics
Compass Therapeutics, Inc., a clinical-stage oncology-focused biopharmaceutical company, engages in developing antibody-based therapeutics to treat various human diseases in the United States. The company's lead product candidates include CTX-009, a bispecific antibody that blocks Delta-like ligand 4 a ligand of Notch-1, and vascular endothelial growth factor A signaling pathways, which are critical to angiogenesis and tumor vascularization; and CTX-471, an IgG4 monoclonal antibody that is an agonist of CD137, a key co-stimulatory receptor on immune cells. It also develops CTX-8371, a bispecific inhibitor that targets PD-1 and PD-L1 checkpoint inhibitor antibodies. The company was founded in 2014 and is headquartered in Boston, Massachusetts.
About Kura Oncology
Kura Oncology, Inc., a clinical-stage biopharmaceutical company, develops medicines for the treatment of cancer. The company’s pipeline consists of small molecule product candidates that target cancer. Its lead product candidates are ziftomenib, an orally bioavailable small molecule inhibitor of the menin-KMT2A interaction for the treatment of genetically defined subsets of acute leukemias, including acute myeloid leukemia and acute lymphoblastic leukemia; tipifarnib, an orally bioavailable farnesyl transferase inhibitor combination with alpelisib for patients with PIK3CA-dependent HNSCC; and KO-2806, a farnesyl transferase inhibitor for the treatment of solid tumors. It has a clinical collaboration with Novartis Pharma AG to evaluate the combination of tipifarnib and alpelisib in patients with head and neck squamous cell carcinoma whose tumors have HRAS overexpression and/or PIK3CA mutation and/or amplification. The company was founded in 2014 and is headquartered in San Diego, California.
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