Axcella Health (NASDAQ:AXLA – Get Free Report) and Cyclo Therapeutics (NASDAQ:CYTH – Get Free Report) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.
Institutional & Insider Ownership
66.6% of Axcella Health shares are owned by institutional investors. Comparatively, 23.0% of Cyclo Therapeutics shares are owned by institutional investors. 6.5% of Axcella Health shares are owned by company insiders. Comparatively, 29.8% of Cyclo Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Axcella Health has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Cyclo Therapeutics has a beta of -0.41, meaning that its share price is 141% less volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Axcella Health | N/A | -3,888.62% | -259.91% |
| Cyclo Therapeutics | -2,078.30% | -1,706.53% | -352.00% |
Earnings & Valuation
This table compares Axcella Health and Cyclo Therapeutics’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Axcella Health | N/A | N/A | -$81.19 million | ($0.77) | -0.14 |
| Cyclo Therapeutics | $1.38 million | 19.87 | -$15.45 million | ($1.88) | -0.76 |
Cyclo Therapeutics has higher revenue and earnings than Axcella Health. Cyclo Therapeutics is trading at a lower price-to-earnings ratio than Axcella Health, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for Axcella Health and Cyclo Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Axcella Health | 0 | 2 | 2 | 0 | 2.50 |
| Cyclo Therapeutics | 0 | 1 | 0 | 0 | 2.00 |
Axcella Health currently has a consensus price target of $5.25, indicating a potential upside of 4,672.73%. Given Axcella Health’s stronger consensus rating and higher possible upside, equities analysts plainly believe Axcella Health is more favorable than Cyclo Therapeutics.
Summary
Axcella Health beats Cyclo Therapeutics on 8 of the 12 factors compared between the two stocks.
About Axcella Health
Axcella Health Inc. operates as a clinical-stage biotechnology company in the United States. The company treats complex diseases using endogenous metabolic modulators. Its product pipeline includes AXA1125 that is in Phase 2a clinical trial for long COVID therapy for patients, as well as Phase 2b clinical trial for treating non-alcoholic steatohepatitis; and AXA1665, which is in Phase 2 clinical trial for the reduction in risk of overt hepatic encephalopathy recurrence. The company was formerly known as Newco LS16, Inc. and changed its name to Axcella Health Inc. in June 2016. Axcella Health Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.
About Cyclo Therapeutics
Cyclo Therapeutics, Inc., a clinical stage biotechnology company, develops cyclodextrin-based products for the treatment of neurodegenerative diseases. Its lead drug candidate is Trappsol Cyclo, an orphan drug, which is Phase III clinical trials for the treatment of Niemann-Pick Type C disease. The company also develops Trappsol Cyclo that is in Phase IIb clinical trials for the treatment of Alzheimer's disease. In addition, it sells cyclodextrins and related products to the pharmaceutical, nutritional, and other industries, primarily for use in diagnostics and specialty drugs. The company was formerly known as CTD Holdings, Inc. and changed its name to Cyclo Therapeutics, Inc. in September 2019. Cyclo Therapeutics, Inc. was incorporated in 1990 and is based in Gainesville, Florida.
Receive News & Ratings for Axcella Health Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Axcella Health and related companies with MarketBeat.com's FREE daily email newsletter.
