Cardiff Oncology (NASDAQ:CRDF) and Scholar Rock (NASDAQ:SRRK) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.
Analyst Recommendations
This is a breakdown of recent ratings for Cardiff Oncology and Scholar Rock, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Cardiff Oncology | 0 | 0 | 4 | 0 | 3.00 |
| Scholar Rock | 0 | 0 | 5 | 0 | 3.00 |
Cardiff Oncology currently has a consensus target price of $23.75, indicating a potential upside of 186.84%. Scholar Rock has a consensus target price of $61.60, indicating a potential upside of 100.19%. Given Cardiff Oncology's higher probable upside, analysts clearly believe Cardiff Oncology is more favorable than Scholar Rock.
Profitability
This table compares Cardiff Oncology and Scholar Rock's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Cardiff Oncology | -4,990.52% | -95.03% | -71.77% |
| Scholar Rock | -365.84% | -80.16% | -41.33% |
Institutional and Insider Ownership
53.0% of Cardiff Oncology shares are owned by institutional investors. Comparatively, 61.9% of Scholar Rock shares are owned by institutional investors. 0.6% of Cardiff Oncology shares are owned by company insiders. Comparatively, 24.6% of Scholar Rock shares are owned 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.
Earnings and Valuation
This table compares Cardiff Oncology and Scholar Rock's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Cardiff Oncology | $250,000.00 | 1,243.72 | $-16,410,000.00 | ($2.80) | -2.96 |
| Scholar Rock | $20.49 million | 51.45 | $-51,000,000.00 | ($1.85) | -16.63 |
Cardiff Oncology has higher earnings, but lower revenue than Scholar Rock. Scholar Rock is trading at a lower price-to-earnings ratio than Cardiff Oncology, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Cardiff Oncology has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500. Comparatively, Scholar Rock has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500.
Summary
Scholar Rock beats Cardiff Oncology on 8 of the 13 factors compared between the two stocks.
