Critical Contrast: Context Therapeutics (NASDAQ:CNTX) versus Gyre Therapeutics (NASDAQ:GYRE)

Gyre Therapeutics (NASDAQ:GYRE) and Context Therapeutics (NASDAQ:CNTX) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Profitability

This table compares Gyre Therapeutics and Context Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gyre Therapeutics	N/A	-197.57%	-88.92%
Context Therapeutics	N/A	-53.13%	-48.60%

Volatility and Risk

Gyre Therapeutics has a beta of 2.07, meaning that its share price is 107% more volatile than the S&P 500. Comparatively, Context Therapeutics has a beta of 2.31, meaning that its share price is 131% more volatile than the S&P 500.

Institutional & Insider Ownership

24.0% of Gyre Therapeutics shares are held by institutional investors. Comparatively, 14.0% of Context Therapeutics shares are held by institutional investors. 2.9% of Gyre Therapeutics shares are held by company insiders. Comparatively, 12.3% of Context Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Gyre Therapeutics and Context Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gyre Therapeutics	0	0	0	0	N/A
Context Therapeutics	0	0	4	0	3.00

Context Therapeutics has a consensus target price of $6.25, indicating a potential upside of 200.48%. Given Context Therapeutics’ higher possible upside, analysts clearly believe Context Therapeutics is more favorable than Gyre Therapeutics.

Earnings & Valuation

This table compares Gyre Therapeutics and Context Therapeutics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gyre Therapeutics	$111.59 million	10.76	-$92.93 million	N/A	N/A
Context Therapeutics	N/A	N/A	-$23.96 million	($1.33)	-1.56

Context Therapeutics has lower revenue, but higher earnings than Gyre Therapeutics.

Summary

Context Therapeutics beats Gyre Therapeutics on 7 of the 9 factors compared between the two stocks.

About Gyre Therapeutics

Gyre Therapeutics, Inc., a biopharmaceutical company, primarily focuses on the development and commercialization of Hydronidone for the treatment of Metabolic Dysfunction Associated Steatohepatitis in the United States. Its Hydronidone is also being evaluated for the treatment of liver fibrosis across a spectrum of chronic liver diseases. In addition, it advances a product pipeline in China, including Pirfenidone, for dermatomyositis interstitial lung disease, systemic sclerosis-associated interstitial lung disease, and pneumoconiosis, as well as for diabetic kidney disease; and product candidates for acute-on-chronic liver failure, chronic obstructive pulmonary disease, and pulmonary arterial hypertension. The company was founded in 2002 and is headquartered in San Diego, California.

About Context Therapeutics

Context Therapeutics Inc., a biopharmaceutical company, develops products for the treatment of solid tumors. Its lead program candidate is CTIM-76, an anti-Claudin 6 (CLDN6) x anti-CD3 bispecific antibody that is intended to redirect T-cell-mediated lysis toward malignant cells expressing CLDN6. The company has a collaboration and licensing agreement with Integral Molecular, Inc. for the development of a CLDN6 bispecific monoclonal antibody for cancer therapy. Context Therapeutics Inc. was incorporated in 2015 and is headquartered in Philadelphia, Pennsylvania.