Critical Contrast: Cidara Therapeutics (NASDAQ:CDTX) vs. Cabaletta Bio (NASDAQ:CABA)

Cabaletta Bio (NASDAQ:CABA) and Cidara Therapeutics (NASDAQ:CDTX) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.

Earnings and Valuation

This table compares Cabaletta Bio and Cidara Therapeutics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cabaletta Bio	N/A	N/A	-$67.68 million	($2.15)	-0.78
Cidara Therapeutics	$44.65 million	3.64	-$22.93 million	($25.52)	-0.90

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

Insider and Institutional Ownership

35.8% of Cidara Therapeutics shares are held by institutional investors. 9.9% of Cabaletta Bio shares are held by insiders. Comparatively, 7.6% of Cidara Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Cabaletta Bio and Cidara Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cabaletta Bio	0	1	6	1	3.00
Cidara Therapeutics	0	0	4	2	3.33

Cabaletta Bio presently has a consensus target price of $22.71, indicating a potential upside of 1,260.14%. Cidara Therapeutics has a consensus target price of $32.20, indicating a potential upside of 39.70%. Given Cabaletta Bio’s higher probable upside, equities research analysts plainly believe Cabaletta Bio is more favorable than Cidara Therapeutics.

Profitability

This table compares Cabaletta Bio and Cidara Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cabaletta Bio	N/A	-50.10%	-45.49%
Cidara Therapeutics	-289.05%	-69.64%	-33.73%

Risk and Volatility

Cabaletta Bio has a beta of 2.47, suggesting that its stock price is 147% more volatile than the S&P 500. Comparatively, Cidara Therapeutics has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Summary

Cabaletta Bio beats Cidara Therapeutics on 8 of the 14 factors compared between the two stocks.

About Cabaletta Bio

Cabaletta Bio, Inc., a clinical-stage biotechnology company, focuses on the discovery and development of engineered T cell therapies for patients with B cell-mediated autoimmune diseases. The company's lead product candidate is CABA-201, a fully human anti-CD19 binder for the treatment of Phase 1/2 clinical trials in dermatomyositis, anti-synthetase syndrome, immune-mediated necrotizing myopathy, lupus nephritis, non-renal systemic lupus erythematosus, systemic sclerosis, and generalized myasthenia gravis. It also develops DSG3-CAART, which is in Phase I/II clinical trial for the treatment of mucosal pemphigus vulgaris; and MuSK-CAART, an investigational cell therapy that is in Phase I/II clinical trial for treating patients with anti- muscle-specific kinase antibody positive myasthenia gravis. It has a collaboration with the University of Pennsylvania and the Children's Hospital of Philadelphia; Nanjing IASO Biotherapeutics Co., Ltd; Oxford Biomedica; and WuXi Advanced Therapies, Inc. The company was formerly known as Tycho Therapeutics, Inc. and changed its name to Cabaletta Bio, Inc. in August 2018. Cabaletta Bio, Inc. was incorporated in 2017 and is headquartered in Philadelphia, Pennsylvania.

About Cidara Therapeutics

Cidara Therapeutics, Inc., a biotechnology company, focuses on developing targeted therapies for patients facing cancers and other serious diseases. The company's product includes rezafungin acetate, a novel molecule in the echinocandin class of antifungals for the treatment and prevention of invasive fungal infections, including candidemia and invasive candidiasis, which are fungal infections associated with high mortality rates. It also develops its Cloudbreak platform that enables development of novel drug-Fc conjugates, that includes CD388, a potent antiviral designed to deliver universal prevention and treatment of seasonal and pandemic influenza, which is in Phase 1 and Phase 2a clinical trials. The company was formerly known as K2 Therapeutics, Inc. and changed its name to Cidara Therapeutics, Inc. in July 2014. The company was incorporated in 2012 and is based in San Diego, California.