Comparing NeuroSense Therapeutics (NASDAQ:NRSN) and Phathom Pharmaceuticals (NASDAQ:PHAT)

Phathom Pharmaceuticals (NASDAQ:PHAT) and NeuroSense Therapeutics (NASDAQ:NRSN) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Phathom Pharmaceuticals and NeuroSense Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phathom Pharmaceuticals	0	1	4	0	2.80
NeuroSense Therapeutics	0	0	1	0	3.00

Phathom Pharmaceuticals currently has a consensus target price of $22.00, suggesting a potential upside of 119.12%. Given Phathom Pharmaceuticals’ higher probable upside, equities analysts clearly believe Phathom Pharmaceuticals is more favorable than NeuroSense Therapeutics.

Institutional and Insider Ownership

99.0% of Phathom Pharmaceuticals shares are owned by institutional investors. Comparatively, 1.0% of NeuroSense Therapeutics shares are owned by institutional investors. 24.1% of Phathom Pharmaceuticals shares are owned by insiders. Comparatively, 27.4% of NeuroSense Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Phathom Pharmaceuticals has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, NeuroSense Therapeutics has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500.

Valuation & Earnings

This table compares Phathom Pharmaceuticals and NeuroSense Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phathom Pharmaceuticals	$680,000.00	864.03	-$201.59 million	($3.88)	-2.59
NeuroSense Therapeutics	N/A	N/A	-$11.28 million	($0.83)	-1.60

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

Profitability

This table compares Phathom Pharmaceuticals and NeuroSense Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phathom Pharmaceuticals	N/A	N/A	-63.40%
NeuroSense Therapeutics	N/A	-678.59%	-207.30%

About Phathom Pharmaceuticals

Phathom Pharmaceuticals, Inc., biopharmaceutical company, focuses on developing and commercializing treatments for gastrointestinal diseases. The company has the rights in the United States, Europe, and Canada for an investigational potassium-competitive acid blocker (P-CAB) that blocks acid secretion in the stomach. It is also developing vonoprazan for the treatment of erosive gastroesophageal reflux disease; and in combination with antibiotics for the treatment of Helicobacter pylori infection. The company was incorporated in 2018 and is headquartered in Florham Park, New Jersey.

About NeuroSense Therapeutics

NeuroSense Therapeutics Ltd., a clinical-stage biotechnology company, focuses on discovering and developing treatments for patients suffering from debilitating neurodegenerative diseases in the United States and internationally. The company's lead product is PrimeC, an extended-release oral formulation of a fixed-dose combination of ciprofloxacin and celecoxib, currently under Phase 2b/3 clinical trials for the treatment of amyotrophic lateral sclerosis, and completed Phase 2 clinical trials for the treatment of Alzheimer's, as well as under preclinical studies for the treatment of Parkinson's disease. Its preclinical pipeline includes StabiliC for the treatment of Parkinson's disease; and CogniC for the treatment of Alzheimer's disease. The company was incorporated in 2017 and is headquartered in Herzliya, Israel.