Financial Contrast: Constellation Pharmaceuticals (NASDAQ:CNST) versus CymaBay Therapeutics (NASDAQ:CBAY)

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Constellation Pharmaceuticals and CymaBay Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Constellation Pharmaceuticals 0 0 5 0 3.00
CymaBay Therapeutics 0 1 9 0 2.90

Constellation Pharmaceuticals currently has a consensus price target of $17.80, suggesting a potential upside of 74.51%. CymaBay Therapeutics has a consensus price target of $13.88, suggesting a potential upside of 96.25%. Given CymaBay Therapeutics’ higher probable upside, analysts clearly believe CymaBay Therapeutics is more favorable than Constellation Pharmaceuticals.

Profitability

This table compares Constellation Pharmaceuticals and CymaBay Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Constellation Pharmaceuticals N/A -215.93% -57.02%
CymaBay Therapeutics N/A -38.57% -35.62%

Valuation & Earnings

This table compares Constellation Pharmaceuticals and CymaBay Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Constellation Pharmaceuticals N/A N/A -$59.92 million ($5.00) -2.04
CymaBay Therapeutics $10.00 million 48.56 -$72.55 million ($1.26) -5.61

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

Insider and Institutional Ownership

64.4% of Constellation Pharmaceuticals shares are owned by institutional investors. Comparatively, 99.5% of CymaBay Therapeutics shares are owned by institutional investors. 43.7% of Constellation Pharmaceuticals shares are owned by insiders. Comparatively, 4.2% of CymaBay Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

CymaBay Therapeutics beats Constellation Pharmaceuticals on 7 of the 10 factors compared between the two stocks.

Constellation Pharmaceuticals Company Profile

Constellation Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing therapeutics that address serious unmet medical needs in patients with cancers associated with abnormal gene expression or drug resistance. The company's lead product candidates include CPI-0610 that is in Phase II clinical trials for the treatment of patients with myelofibrosis in combination with ruxolitinib; and CPI-1205 that is in Phase Ib/II clinical trials for the treatment of metastatic castration-resistant prostate cancer in combination with androgen receptor signaling inhibitors. It is also developing CPI-0209, which is in preclinical trials for the treatment of solid tumors. The company was formerly known as Epigenetix, Inc. and changed its name to Constellation Pharmaceuticals, Inc. in March 2008. Constellation Pharmaceuticals, Inc. was founded in 2008 and is based in Cambridge, Massachusetts.

CymaBay Therapeutics Company Profile

CymaBay Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing and providing therapies to treat liver and other chronic diseases. Its lead product candidate is seladelpar, a selective agonist of peroxisome proliferator-activated receptor delta, which has completed Phase II clinical study for the treatment of primary biliary cholangitis, as well as patients with nonalcoholic steatohepatitis. The company also develops MBX-2982, a selective orally-active G protein-coupled receptor agonist that interacts with bioactive lipids known to stimulate glucose-dependent insulin secretion for the treatment of gut/liver disease. Its preclinical stage product candidate is CB-001, a G protein-coupled receptor for omega-3 fatty acids, such as docosahexaenoic acid for the treatment of gut/liver disease. It has development and licensing agreement with Janssen Pharmaceuticals, Inc. to develop and discover undisclosed metabolic disease target agonists for the treatment of type II diabetes and other disorders; and a license agreement with DiaTex, Inc. to develop and commercialize therapeutic products comrprising halofenate and its enantiomers, derivatives, and analogs for the treatment of diseases. The company was formerly known as Metabolex, Inc. CymaBay Therapeutics, Inc. was incorporated in 1988 and is headquartered in Newark, California.

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