Financial Review: Pasithea Therapeutics (NASDAQ:KTTA) versus Oncobiologics (NASDAQ:OTLK)

Oncobiologics (NASDAQ:OTLK) and Pasithea Therapeutics (NASDAQ:KTTA) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Valuation & Earnings

This table compares Oncobiologics and Pasithea Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oncobiologics	$333,141.00	454.94	-$62.42 million	($1.17)	-0.87
Pasithea Therapeutics	N/A	N/A	-$20.43 million	($2.08)	-0.24

Pasithea Therapeutics has lower revenue, but higher earnings than Oncobiologics. Oncobiologics is trading at a lower price-to-earnings ratio than Pasithea Therapeutics, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Oncobiologics has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Pasithea Therapeutics has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.

Institutional and Insider Ownership

11.2% of Oncobiologics shares are owned by institutional investors. Comparatively, 23.9% of Pasithea Therapeutics shares are owned by institutional investors. 1.8% of Oncobiologics shares are owned by insiders. Comparatively, 2.0% of Pasithea Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Oncobiologics and Pasithea Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oncobiologics	N/A	N/A	-291.28%
Pasithea Therapeutics	N/A	-57.44%	-53.61%

Analyst Recommendations

This is a summary of recent recommendations for Oncobiologics and Pasithea Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oncobiologics	1	4	2	0	2.14
Pasithea Therapeutics	1	0	1	1	2.67

Oncobiologics currently has a consensus price target of $4.65, indicating a potential upside of 355.88%. Pasithea Therapeutics has a consensus price target of $3.00, indicating a potential upside of 492.07%. Given Pasithea Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Pasithea Therapeutics is more favorable than Oncobiologics.

Summary

Pasithea Therapeutics beats Oncobiologics on 8 of the 13 factors compared between the two stocks.

About Oncobiologics

Outlook Therapeutics, Inc., operates as a clinical-stage biopharmaceutical company, focuses on developing and commercializing monoclonal antibodies for various ophthalmic indications. Its lead product candidate is ONS-5010, an ophthalmic formulation of bevacizumab product candidate that is in Phase-III clinical trial for the treatment of wet age-related macular degeneration and other retina diseases. Outlook Therapeutics, Inc. has collaboration and license agreements with BioLexis Pte. Ltd. and Zhejiang Huahai Pharmaceutical Co., Ltd. The company was formerly known as Oncobiologics, Inc. and changed its name to Outlook Therapeutics, Inc. in November 2018. Outlook Therapeutics, Inc. was incorporated in 2010 and is based in Iselin, New Jersey.

About Pasithea Therapeutics

Pasithea Therapeutics Corp., a biotechnology company, engages in discovery, research, and development of treatments for central nervous system disorders, RASopathies, and other diseases. Its lead product candidate PAS-004, a next-generation macrocyclic mitogen-activated protein kinase, or MEK inhibitor for use in the treatment of a range of RASopathies, including neurofibromatosis type 1 oncology indications. The company intends to develop PAS-003, to treat amyotrophic lateral sclerosis; and PAS-001, to treat schizophrenia. Pasithea Therapeutics Corp. was incorporated in 2020 and is headquartered in Miami Beach, Florida.