Critical Review: Citius Pharmaceuticals (NASDAQ:CTXR) versus Millendo Therapeutics (NASDAQ:MLND)

Citius Pharmaceuticals (NASDAQ:CTXR) and Millendo Therapeutics (NASDAQ:MLND) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.

Valuation and Earnings

This table compares Citius Pharmaceuticals and Millendo Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Citius Pharmaceuticals N/A N/A -$12.53 million ($1.17) -0.38
Millendo Therapeutics $290,000.00 358.20 -$27.19 million ($17.58) -0.44

Citius Pharmaceuticals has higher earnings, but lower revenue than Millendo Therapeutics. Millendo Therapeutics is trading at a lower price-to-earnings ratio than Citius Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

16.5% of Citius Pharmaceuticals shares are owned by institutional investors. Comparatively, 60.1% of Millendo Therapeutics shares are owned by institutional investors. 58.5% of Citius Pharmaceuticals shares are owned by insiders. Comparatively, 3.7% of Millendo Therapeutics 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.

Profitability

This table compares Citius Pharmaceuticals and Millendo Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Citius Pharmaceuticals N/A -62.53% -54.21%
Millendo Therapeutics N/A -70.53% -58.53%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Citius Pharmaceuticals and Millendo Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Citius Pharmaceuticals 0 0 2 0 3.00
Millendo Therapeutics 0 0 7 0 3.00

Citius Pharmaceuticals presently has a consensus target price of $5.00, indicating a potential upside of 1,036.36%. Millendo Therapeutics has a consensus target price of $25.14, indicating a potential upside of 226.11%. Given Citius Pharmaceuticals’ higher possible upside, equities analysts plainly believe Citius Pharmaceuticals is more favorable than Millendo Therapeutics.

Risk & Volatility

Citius Pharmaceuticals has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, Millendo Therapeutics has a beta of 2.64, meaning that its stock price is 164% more volatile than the S&P 500.

Summary

Citius Pharmaceuticals beats Millendo Therapeutics on 7 of the 11 factors compared between the two stocks.

Citius Pharmaceuticals Company Profile

Citius Pharmaceuticals, Inc., a specialty pharmaceutical company, develops and commercializes critical care products. It primarily focuses on developing anti-infective, cancer care, and prescription products. The company develops Mino-Lok, which is in Phase III clinical trials for the treatment and salvage of infected central venous catheters in patients with catheter related bloodstream infections; and Hydro-Lido, a topical formulation of hydrocortisone and lidocaine that is intended for the treatment of hemorrhoids. It has a collaboration and license agreement with Alpex Pharma S.A. to develop and commercialize orally disintegrating tablet formulations of pharmaceutical products in United States, Canada, and Mexico. Citius Pharmaceuticals, Inc. was founded in 2007 and is headquartered in Cranford, New Jersey.

Millendo Therapeutics Company Profile

Millendo Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in the development of various treatments for orphan endocrine diseases in the United States. The company's lead drug candidates include livoletide, an unacylated ghrelin analogue to treat for Prader-Willi syndrome; and nevanimibe, which is in Phase 2b clinical development for the treatment of congenital adrenal hyperplasia and endogenous Cushing's syndrome. The company is based in Ann Arbor, Michigan.

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