XOMA (XOMA) and ContraFect (CFRX) Head-To-Head Review

XOMA (NASDAQ: XOMA) and ContraFect (NASDAQ:CFRX) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.

Profitability

This table compares XOMA and ContraFect’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
XOMA -3.51% -1.14% 0.95%
ContraFect N/A -84.07% -44.69%

Analyst Ratings

This is a breakdown of recent ratings and price targets for XOMA and ContraFect, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
XOMA 0 1 2 0 2.67
ContraFect 0 1 0 0 2.00

XOMA presently has a consensus target price of $41.00, indicating a potential upside of 22.79%. Given XOMA’s stronger consensus rating and higher probable upside, equities research analysts plainly believe XOMA is more favorable than ContraFect.

Institutional and Insider Ownership

33.5% of XOMA shares are held by institutional investors. Comparatively, 62.5% of ContraFect shares are held by institutional investors. 3.0% of XOMA shares are held by company insiders. Comparatively, 9.3% of ContraFect shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

XOMA has a beta of 3.17, meaning that its share price is 217% more volatile than the S&P 500. Comparatively, ContraFect has a beta of -0.85, meaning that its share price is 185% less volatile than the S&P 500.

Earnings & Valuation

This table compares XOMA and ContraFect’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
XOMA $5.56 million 48.88 -$53.53 million ($7.18) -4.65
ContraFect N/A N/A -$28.53 million ($0.23) -5.43

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

Summary

XOMA beats ContraFect on 8 of the 13 factors compared between the two stocks.

About XOMA

XOMA Corporation is a development-stage biotechnology company. The Company focuses on the discovery and development of monoclonal antibody-based therapeutics. It has five products in its endocrine portfolio, two of which are developed as part of its XOMA Metabolism (XMet) platform. Its products include XOMA 358, XOMA 129, XOMA 213 and Gevokizumab. Its XOMA 358 is meant for long-acting treatment of hyperinsulinemic hypoglycemia. XOMA 129 is meant for rapid onset, short-acting treatment of severe acute hypoglycemia. XOMA 213 is a Phase II-ready product candidate targeting the prolactin receptor, as well as research-stage programs targeting the parathyroid receptor (PTH1R) and the adrenal corticotropic hormone (ACTH). Gevokizumab is a humanized monoclonal antibody with allosteric properties that has the potential to treat patients with a range of inflammatory diseases. Its technologies include Antibody Discovery Advanced Platform Technologies (ADAPT), ModulX and OptimX.

About ContraFect

ContraFect Corporation, a clinical-stage biotechnology company, focuses on discovering and developing therapeutic protein and antibody products for the treatment of life-threatening infectious diseases in the United States. Its lead product candidates consist of CF-301, a lysin that completed Phase 1 human clinical trials for the treatment of Staph aureus bacteremia, including endocarditis caused by methicillin-resistant or methicillin-susceptible Staph aureus; and CF-404, a combination of human monoclonal antibodies (mAbs) for the treatment of life-threatening seasonal and pandemic varieties of human influenza. The company has a collaboration research agreement with The Rockefeller University to identify new lysin therapeutic candidates targeting Gram-negative bacteria; and license agreement with Trellis Bioscience LLC for mAbs in the field of influenza. ContraFect Corporation was founded in 2008 and is headquartered in Yonkers, New York.

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