Galecto (NASDAQ:GLTO – Get Free Report) and Eton Pharmaceuticals (NASDAQ:ETON – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.
Valuation & Earnings
This table compares Galecto and Eton Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Galecto | N/A | N/A | -$38.35 million | ($19.14) | -0.26 |
| Eton Pharmaceuticals | $34.68 million | 13.05 | -$940,000.00 | ($0.22) | -78.95 |
Eton Pharmaceuticals has higher revenue and earnings than Galecto. Eton Pharmaceuticals is trading at a lower price-to-earnings ratio than Galecto, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Profitability
This table compares Galecto and Eton Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Galecto | N/A | -76.96% | -66.59% |
| Eton Pharmaceuticals | -15.81% | -36.29% | -16.84% |
Institutional and Insider Ownership
14.2% of Galecto shares are held by institutional investors. Comparatively, 27.9% of Eton Pharmaceuticals shares are held by institutional investors. 11.9% of Galecto shares are held by company insiders. Comparatively, 14.9% of Eton Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations and price targets for Galecto and Eton Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Galecto | 0 | 0 | 1 | 0 | 3.00 |
| Eton Pharmaceuticals | 0 | 0 | 2 | 1 | 3.33 |
Galecto currently has a consensus target price of $10.00, suggesting a potential upside of 100.96%. Eton Pharmaceuticals has a consensus target price of $24.00, suggesting a potential upside of 38.17%. Given Galecto’s higher possible upside, equities analysts clearly believe Galecto is more favorable than Eton Pharmaceuticals.
Summary
Eton Pharmaceuticals beats Galecto on 11 of the 14 factors compared between the two stocks.
About Galecto
Galecto, Inc., a clinical-stage biotechnology company, develops molecules for the treatment of fibrosis, cancer, inflammation, and other related diseases. The company's lead product candidate is GB2064, which is in Phase IIa for the treatment of myelofibrosis. It also develops GB2064, a selective oral small molecule inhibitor of LOXL2 that is in Phase 2a clinical trial for the treatment of fibrotic diseases, including cancer and myelofibrosis; and GB1211, a selective oral galectin-3 inhibitor that is in Phase IIa for the treatment of cancer, as well as in Phase Ib/IIa for fibrosis. Galecto, Inc. was founded in 2011 and is headquartered in Copenhagen, Denmark.
About Eton Pharmaceuticals
Eton Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on developing, acquiring, and commercializing pharmaceutical products for rare diseases. The company offers ALKINDI SPRINKLE, a replacement therapy for adrenocortical insufficiency in children under 17 years of age; Carglumic Acid for the treatment of acute and chronic hyperammonemia due to N-acetylglutamate Synthase deficiency; Betaine Anhydrous for the treatment of homocystinuria; and Nitisinone for the treatment of tyrosinemia type 1. It also provides Zeneo hydrocortisone autoinjector for the treatment of adrenal crisis. Eton Pharmaceuticals, Inc. was incorporated in 2017 and is based in Deer Park, Illinois.
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