Xenetic Biosciences (NASDAQ:XBIO) and Achaogen (NASDAQ:AKAO) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Earnings & Valuation

This table compares Xenetic Biosciences and Achaogen’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Xenetic Biosciences $7.59 million 0.89 -$7.30 million N/A N/A
Achaogen $8.73 million 0.80 -$186.51 million ($3.70) -0.03

Xenetic Biosciences has higher earnings, but lower revenue than Achaogen.

Insider & Institutional Ownership

3.9% of Xenetic Biosciences shares are owned by institutional investors. Comparatively, 31.9% of Achaogen shares are owned by institutional investors. 7.1% of Xenetic Biosciences shares are owned by company insiders. Comparatively, 7.8% of Achaogen shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Xenetic Biosciences and Achaogen, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xenetic Biosciences 0 0 0 0 N/A
Achaogen 0 8 0 0 2.00

Achaogen has a consensus price target of $6.60, suggesting a potential upside of 5,900.00%. Given Achaogen’s higher possible upside, analysts plainly believe Achaogen is more favorable than Xenetic Biosciences.

Profitability

This table compares Xenetic Biosciences and Achaogen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xenetic Biosciences N/A -59.84% -42.75%
Achaogen -2,136.94% -357.49% -127.68%

Volatility & Risk

Xenetic Biosciences has a beta of 2.48, indicating that its stock price is 148% more volatile than the S&P 500. Comparatively, Achaogen has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Summary

Xenetic Biosciences beats Achaogen on 6 of the 10 factors compared between the two stocks.

About Xenetic Biosciences

Xenetic Biosciences, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, research, and development of next-generation biologic drugs and novel orphan oncology therapeutics. The company's lead investigational product candidate is oncology therapeutic XBIO-101 (sodium cridanimod) for the treatment of progesterone resistant endometrial cancer. Its proprietary drug development platform, PolyXen, enables next-generation biologic drugs by improving their half-life and other pharmacological properties. The company has a research, development, license, and supply agreements with Shire plc, Serum Institute of India, PJSC Pharmsynthez, and SynBio LLC. Xenetic Biosciences, Inc. is headquartered in Lexington, Massachusetts.

About Achaogen

Achaogen, Inc., a late-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of antibacterial treatments against multi-drug resistant (MDR) gram-negative infections in the United States. The company is principally developing plazomicin for the treatment of serious bacterial infections, including urinary tract infections, blood stream infections, and other infections due to MDR enterobacteriaceae comprising carbapenem-resistant enterobacteriaceae. It is also involved in the development of antibacterial candidate C-Scape, an orally-administered combination of clavulanate and ceftibuten, which targets serious bacterial infections due to expanded spectrum beta-lactamases producing enterobacteriaceae; and therapeutic antibody discovery program. The company has license and collaboration agreements with Thermo Fisher Scientific, Inc. to develop and commercialize an assay to support plazomicin; Crystal Biosciences, Inc. to discover monoclonal antibodies against multiple targets; Ionis Pharmaceuticals, Inc. for certain patents relating to aminoglycoside antibacterial compounds and related know-how to develop and commercialize certain novel aminoglycoside antibacterial compounds; and Hovione Limited to manufacture the active pharmaceutical ingredient for plazomicin. The company was incorporated in 2002 and is based in South San Francisco, California.

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