Bright Minds Biosciences (NASDAQ:DRUG) versus Rein Therapeutics (NASDAQ:RNTX) Head-To-Head Contrast

Rein Therapeutics (NASDAQ:RNTX) and Bright Minds Biosciences (NASDAQ:DRUG) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Insider & Institutional Ownership

90.9% of Rein Therapeutics shares are owned by institutional investors. Comparatively, 40.5% of Bright Minds Biosciences shares are owned by institutional investors. 5.1% of Rein Therapeutics shares are owned by insiders. Comparatively, 42.7% of Bright Minds Biosciences shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Rein Therapeutics has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Bright Minds Biosciences has a beta of -6.27, suggesting that its stock price is 727% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Rein Therapeutics and Bright Minds Biosciences, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rein Therapeutics	1	0	2	0	2.33
Bright Minds Biosciences	0	0	8	2	3.20

Rein Therapeutics presently has a consensus target price of $8.00, suggesting a potential upside of 400.00%. Bright Minds Biosciences has a consensus target price of $81.00, suggesting a potential upside of 37.78%. Given Rein Therapeutics’ higher possible upside, equities analysts plainly believe Rein Therapeutics is more favorable than Bright Minds Biosciences.

Valuation & Earnings

This table compares Rein Therapeutics and Bright Minds Biosciences”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rein Therapeutics	N/A	N/A	-$62.88 million	($2.69)	-0.59
Bright Minds Biosciences	N/A	N/A	-$2.06 million	($0.93)	-63.22

Bright Minds Biosciences is trading at a lower price-to-earnings ratio than Rein Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Rein Therapeutics and Bright Minds Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rein Therapeutics	N/A	-141.11%	-33.83%
Bright Minds Biosciences	N/A	-20.96%	-20.66%

Summary

Bright Minds Biosciences beats Rein Therapeutics on 8 of the 12 factors compared between the two stocks.

About Rein Therapeutics

Rein Therapeutics, Inc. is a clinical stage biopharmaceutical company, which engages in the development and commercialization of a novel class of therapeutics for the treatment of cancer and other diseases. It focuses on its lead product candidate, ALRN-6924, which is a cell-permeating peptide that disrupts the interaction of p53 suppressors MDM2 and MDMX with tumor suppressor p53 to reactivate tumor suppression in non-mutant, or wild-type, p53 cancers. The company was founded by Gregory L. Verdine, Rosana Kapeller, Huw M. Nash, Joseph A. Yanchik III, and Loren David Walensky on August 6, 2001 and is headquartered in Austin, TX.

About Bright Minds Biosciences

Bright Minds Biosciences Inc., a biotechnology company, develops therapeutics to improve the lives of patients with severe and life-altering diseases in the United States. Its portfolio of selective 5-HT receptor agonists includes 5-HT2C, 5-HT2A, and 5-HT2C/A for the treatment of epilepsy, pain, and neuropsychiatry; and BMB-101 which completes phase 1 trial for undisclosed seizure disorder. The company also developing BMB-202 for the treatment of depression, anxiety, and PTSD; and BMB-201 for the treatment of anxiety. It has collaboration with National Institutes of Health for the treatment of epilepsy; University of Texas Medical Branch to treat impulse control disorders, such as binge eating; and Medical College of Wisconsin. Bright Minds Biosciences Inc. was founded in 2017 and is headquartered in New York, New York.