Verrica Pharmaceuticals (NASDAQ:VRCA) and Calithera Biosciences (NASDAQ:CALA) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Valuation & Earnings

This table compares Verrica Pharmaceuticals and Calithera Biosciences’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Verrica Pharmaceuticals N/A N/A -$4.45 million N/A N/A
Calithera Biosciences $25.95 million 6.71 -$27.82 million ($0.84) -5.76

Verrica Pharmaceuticals has higher earnings, but lower revenue than Calithera Biosciences.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Verrica Pharmaceuticals and Calithera Biosciences, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verrica Pharmaceuticals 0 0 3 0 3.00
Calithera Biosciences 0 0 2 0 3.00

Verrica Pharmaceuticals presently has a consensus price target of $28.33, suggesting a potential upside of 136.31%. Calithera Biosciences has a consensus price target of $14.00, suggesting a potential upside of 189.26%. Given Calithera Biosciences’ higher possible upside, analysts clearly believe Calithera Biosciences is more favorable than Verrica Pharmaceuticals.

Institutional & Insider Ownership

31.9% of Verrica Pharmaceuticals shares are owned by institutional investors. Comparatively, 54.9% of Calithera Biosciences shares are owned by institutional investors. 16.3% of Calithera Biosciences shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Verrica Pharmaceuticals and Calithera Biosciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Verrica Pharmaceuticals N/A N/A N/A
Calithera Biosciences -90.65% -31.06% -26.10%

Summary

Verrica Pharmaceuticals beats Calithera Biosciences on 5 of the 9 factors compared between the two stocks.

Verrica Pharmaceuticals Company Profile

Verrica Pharmaceuticals Inc. develops and commercializes dermatological treatments in the United States. The company is advancing its lead product VP-102, a proprietary topical therapy, in various common skin indications, including Molluscum contagiosum and Verruca Vulgaris. It is also developing 2 Phase 3 trials in molluscum contagiosum under NCT03377803 and NCT03377790. The company is headquartered in West Chester, Pennsylvania.

Calithera Biosciences Company Profile

Calithera Biosciences, Inc., a clinical-stage bio-pharmaceutical company, focuses on the discovery and development of small molecule drugs directed against tumor metabolism and tumor immunology targets for the treatment of cancer in the United States. Its lead product candidate is CB-839, an inhibitor of glutaminase, which is in Phase II clinical trial to treat solid tumors. The company also offers INCB001158, an oral inhibitor of arginase that is in Phase I/II clinical trial for the treatment of hematology and oncology. It has a license agreement with Mars, Inc. to develop and commercialize Symbioscience's portfolio of arginase inhibitors for use in human healthcare; and license and research agreement with High Point Pharmaceuticals, LLC and TransTech Pharma LLC to develop and commercialize hexokinase II inhibitors. The company also has clinical trial collaboration with Bristol-Myers Squibb Company to evaluate nivolumab in combination with CB-839 in cell renal cell carcinoma. In addition, it has a collaboration and license agreement with Incyte Corporation for the research, development, and commercialization of INCB001158, a small molecule arginase inhibitor for the treatment of hematology and oncology. Calithera Biosciences, Inc. was founded in 2010 and is headquartered in South San Francisco, California.

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