Ayala Pharmaceuticals (NASDAQ:AYLA – Get Rating) and Clarus Therapeutics (NASDAQ:CRXT – Get Rating) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.
Analyst Recommendations
This is a summary of current ratings for Ayala Pharmaceuticals and Clarus Therapeutics, as provided by MarketBeat.com.
Get Ayala Pharmaceuticals alerts:| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ayala Pharmaceuticals | 0 | 0 | 6 | 0 | 3.00 |
| Clarus Therapeutics | 0 | 2 | 2 | 0 | 2.50 |
Ayala Pharmaceuticals presently has a consensus target price of $15.33, suggesting a potential upside of 823.69%. Clarus Therapeutics has a consensus target price of $7.90, suggesting a potential upside of 3,776.35%. Given Clarus Therapeutics' higher probable upside, analysts plainly believe Clarus Therapeutics is more favorable than Ayala Pharmaceuticals.
Profitability
This table compares Ayala Pharmaceuticals and Clarus Therapeutics' net margins, return on equity and return on assets.| Net Margins | Return on Equity | Return on Assets | |
| Ayala Pharmaceuticals | -1,749.29% | -131.63% | -107.62% |
| Clarus Therapeutics | -193.00% | N/A | -87.75% |
Insider and Institutional Ownership
56.1% of Ayala Pharmaceuticals shares are held by institutional investors. Comparatively, 19.5% of Clarus Therapeutics shares are held by institutional investors. 3.6% of Ayala Pharmaceuticals shares are held by company insiders. Comparatively, 5.3% of Clarus Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Ayala Pharmaceuticals and Clarus Therapeutics' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ayala Pharmaceuticals | $3.51 million | 6.98 | -$40.25 million | ($2.54) | -0.65 |
| Clarus Therapeutics | $13.96 million | 0.76 | -$40.62 million | ($1.30) | -0.16 |
Ayala Pharmaceuticals has higher earnings, but lower revenue than Clarus Therapeutics. Ayala Pharmaceuticals is trading at a lower price-to-earnings ratio than Clarus Therapeutics, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Ayala Pharmaceuticals has a beta of 2.36, suggesting that its stock price is 136% more volatile than the S&P 500. Comparatively, Clarus Therapeutics has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.
Summary
Clarus Therapeutics beats Ayala Pharmaceuticals on 8 of the 14 factors compared between the two stocks.
About Ayala Pharmaceuticals
(Get Rating)
Ayala Pharmaceuticals, Inc., a clinical-stage oncology company, focuses on developing and commercializing small molecule therapeutics for patients suffering from rare and aggressive cancers. The company's lead product candidate is AL101, a potent, selective, and injectable small molecule gamma secretase inhibitor (GSI) that is in Phase II clinical trial for the treatment of recurrent/metastatic adenoid cystic carcinoma for patients bearing Notch-activating mutations. It is also involved in developing AL102, a potent, selective, and oral small molecule GSI that is in Phase II/III pivotal study for the treatment of desmoid tumors. Ayala Pharmaceuticals, Inc. has a collaboration agreement with Novartis International Pharmaceutical Limited to develop AL102 for the treatment of multiple myeloma. The company was incorporated in 2017 and is headquartered in Rehovot, Israel.
About Clarus Therapeutics
(Get Rating)
Clarus Therapeutics Holdings, Inc., a pharmaceutical company, focuses on the development and commercialization of oral testosterone replacement therapy in the United States. It offers JATENZO, a soft gel oral formulation of testosterone undecanoate for treating hypogonadal men. The company has a licensing agreement with HavaH Therapeutics for product to treat androgen therapies for inflammatory breast disease and certain forms of breast cancer; and license agreement with The Royal Institution for the Advancement of Learning/McGill University to develop and commercialize McGill's proprietary technology designed to treat conditions associated with CoQ10 deficiencies in humans. Clarus Therapeutics Holdings, Inc. was founded in 2003 and is based in Northbrook, Illinois.
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