Financial Analysis: resTORbio (NASDAQ:TORC) versus Millendo Therapeutics (NASDAQ:MLND)

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

Insider & Institutional Ownership

51.0% of resTORbio shares are owned by institutional investors. Comparatively, 50.5% of Millendo Therapeutics shares are owned by institutional investors. 13.9% of resTORbio shares are owned by company insiders. Comparatively, 3.7% of Millendo Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for resTORbio and Millendo Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
resTORbio 0 0 4 0 3.00
Millendo Therapeutics 0 0 7 0 3.00

resTORbio presently has a consensus target price of $25.50, suggesting a potential upside of 203.21%. Millendo Therapeutics has a consensus target price of $25.14, suggesting a potential upside of 232.14%. Given Millendo Therapeutics’ higher possible upside, analysts clearly believe Millendo Therapeutics is more favorable than resTORbio.

Valuation and Earnings

This table compares resTORbio 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
resTORbio N/A N/A -$37.61 million ($1.42) -5.92
Millendo Therapeutics $290,000.00 350.10 -$27.19 million ($17.58) -0.43

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

Volatility & Risk

resTORbio has a beta of 3.15, suggesting that its stock price is 215% more volatile than the S&P 500. Comparatively, Millendo Therapeutics has a beta of 2.7, suggesting that its stock price is 170% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
resTORbio N/A -49.53% -46.42%
Millendo Therapeutics N/A -64.18% -55.07%

Summary

resTORbio beats Millendo Therapeutics on 6 of the 11 factors compared between the two stocks.

resTORbio Company Profile

resTORbio, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutics for the treatment of aging-related diseases. Its lead program is targeting the selective inhibition of TORC1, an evolutionary conserved pathway that contributes to the decline in function of multiple organ systems, including the immune, cardiac, and neurologic systems. The company's lead drug candidate RTB101 is a selective, orally administered, TORC1 inhibitor, which is being tested in a Phase 2b clinical trial as a first in-class immunotherapy for reducing the incidence of respiratory tract infections in the elderly by enhancing the function of the immune system. It also intends to develop RTB101 for additional aging-related indications, such as heart failure or neurodegenerative diseases. The company was founded in 2016 and is based in Boston, Massachusetts.

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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