Contrasting Cidara Therapeutics (NASDAQ:CDTX) and Eiger BioPharmaceuticals (NASDAQ:EIGR)

Cidara Therapeutics (NASDAQ:CDTX) and Eiger BioPharmaceuticals (NASDAQ:EIGR) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Insider and Institutional Ownership

60.1% of Cidara Therapeutics shares are held by institutional investors. Comparatively, 68.8% of Eiger BioPharmaceuticals shares are held by institutional investors. 6.8% of Cidara Therapeutics shares are held by company insiders. Comparatively, 5.8% of Eiger BioPharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Cidara Therapeutics and Eiger BioPharmaceuticals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cidara Therapeutics $20.92 million 5.30 -$41.09 million ($1.41) -1.64
Eiger BioPharmaceuticals N/A N/A -$70.25 million ($3.08) -2.95

Cidara Therapeutics has higher revenue and earnings than Eiger BioPharmaceuticals. Eiger BioPharmaceuticals is trading at a lower price-to-earnings ratio than Cidara Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cidara Therapeutics and Eiger BioPharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cidara Therapeutics -662.48% -165.58% -92.73%
Eiger BioPharmaceuticals N/A -100.60% -57.76%

Analyst Ratings

This is a breakdown of current recommendations for Cidara Therapeutics and Eiger BioPharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cidara Therapeutics 0 0 5 0 3.00
Eiger BioPharmaceuticals 0 0 2 0 3.00

Cidara Therapeutics currently has a consensus price target of $7.20, suggesting a potential upside of 211.69%. Eiger BioPharmaceuticals has a consensus price target of $25.00, suggesting a potential upside of 175.33%. Given Cidara Therapeutics’ higher possible upside, research analysts clearly believe Cidara Therapeutics is more favorable than Eiger BioPharmaceuticals.

Volatility and Risk

Cidara Therapeutics has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500. Comparatively, Eiger BioPharmaceuticals has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.

Summary

Cidara Therapeutics beats Eiger BioPharmaceuticals on 8 of the 12 factors compared between the two stocks.

About Cidara Therapeutics

Cidara Therapeutics, Inc., a biotechnology company, focuses on the discovery, development, and commercialization of novel anti-infectives for the treatment of diseases in the United States. The company's lead product candidate is rezafungin acetate, a novel molecule in the echinocandin class of antifungals for the treatment and prevention of serious invasive fungal infections, including candidemia and invasive candidiasis, which are fungal infections associated with high mortality rates. It also advances its Cloudbreak platform to develop antiviral Fc-conjugates for the prevention and treatment of influenza and other viral infections, such as RSV, HIV, and Coronavirus. The company was formerly known as K2 Therapeutics, Inc. and changed its name to Cidara Therapeutics, Inc. in July 2014. Cidara Therapeutics, Inc. was founded in 2012 and is headquartered in San Diego, California.

About Eiger BioPharmaceuticals

Eiger BioPharmaceuticals, Inc., a late-stage biopharmaceutical company, focuses on the development and commercialization of targeted therapies for rare and ultra-rare diseases in the United States and internationally. Its lead product candidate is Lonafarnib, an orally bioavailable, small molecule, which is in Phase 3 clinical trial to treat hepatitis delta virus (HDV) infection. The company's product candidate also include Lambda, which targets type III interferon receptors that is in Phase 2 clinical trial; Lonafarnib for the treatment of progeria and progeroid laminopathies; and Avexitide that has completed phase 2 clinical trial to treat post-bariatric hypoglycemia, as well as in phase 2 clinical trial for the treatment of congenital hyperinsulinism. The company is headquartered in Palo Alto, California.

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