Pain Therapeutics (NASDAQ:PTIE) and Rigel Pharmaceuticals (RIGL) Critical Review

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

Volatility and Risk

Pain Therapeutics has a beta of 2.16, indicating that its stock price is 116% more volatile than the S&P 500. Comparatively, Rigel Pharmaceuticals has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Pain Therapeutics and Rigel Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pain Therapeutics 1 0 0 0 1.00
Rigel Pharmaceuticals 0 0 4 0 3.00

Rigel Pharmaceuticals has a consensus price target of $6.75, suggesting a potential upside of 173.28%. Given Rigel Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Rigel Pharmaceuticals is more favorable than Pain Therapeutics.

Insider & Institutional Ownership

36.7% of Pain Therapeutics shares are owned by institutional investors. Comparatively, 88.2% of Rigel Pharmaceuticals shares are owned by institutional investors. 32.7% of Pain Therapeutics shares are owned by company insiders. Comparatively, 5.2% of Rigel Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Pain Therapeutics and Rigel Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pain Therapeutics N/A -75.11% -70.30%
Rigel Pharmaceuticals -354.14% -105.86% -82.23%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Pain Therapeutics N/A N/A -$12.95 million ($2.04) -1.91
Rigel Pharmaceuticals $10.34 million 29.71 -$67.71 million ($0.69) -3.58

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

Pain Therapeutics Company Profile

Pain Therapeutics, Inc. is a biopharmaceutical company. The Company is focused on drug development efforts on disorders of the nervous system, such as chronic pain. The Company’s lead drug candidate, REMOXY, is an abuse-deterrent, oral formulation of oxycodone (CII). The Company’s other products is FENROCK. REMOXY is a painkiller with a formulation designed to reduce potential risks of unintended use. The Company has developed REMOXY to make oxycodone difficult to abuse yet provide approximately 12 hours of steady pain relief when used by patients. REMOXY is intended to meet the needs of healthcare prescribing opioid drugs and seeking to minimize the risks of drug diversion, abuse or accidental patient misuse. The Company’s drug candidate FENROCK is an abuse-deterrent transdermal pain patch in the pre-Investigational new drug-stage of development. FENROCK is designed to provide pain relief over 72 hours.

Rigel Pharmaceuticals Company Profile

Rigel Pharmaceuticals, Inc. is a clinical-stage biotechnology company. The Company is engaged in the discovering, developing and providing novel small molecule drugs that improve the lives of patients with immune and hematological disorders, cancer and rare diseases. The Company’s pioneering research focuses on signaling pathways that are critical to disease mechanisms. The Company’s clinical programs include clinical trials of fostamatinib, an oral spleen tyrosine kinase (SYK) inhibitor, in a number of indications. The Company has submitted a new drug application (NDA) to the United States food and drug administration (FDA) for fostamatinib in patients with chronic or persistent immune thrombocytopenia (ITP). In addition, the Company has product candidates in development with partners BerGenBio AS, Daiichi Sankyo and Aclaris Therapeutics. The Company is engaged in conducting research in the disease areas of inflammation/immunology and muscle wasting/muscle endurance.

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