Vanda Pharmaceuticals (NASDAQ:VNDA) vs. Rapport Therapeutics (NASDAQ:RAPP) Head to Head Contrast

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

Analyst Ratings

This is a breakdown of current recommendations for Vanda Pharmaceuticals and Rapport Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vanda Pharmaceuticals	0	0	2	0	3.00
Rapport Therapeutics	0	0	3	0	3.00

Vanda Pharmaceuticals currently has a consensus target price of $16.50, indicating a potential upside of 245.91%. Rapport Therapeutics has a consensus target price of $35.00, indicating a potential upside of 260.82%. Given Rapport Therapeutics’ higher probable upside, analysts plainly believe Rapport Therapeutics is more favorable than Vanda Pharmaceuticals.

Valuation and Earnings

This table compares Vanda Pharmaceuticals and Rapport Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vanda Pharmaceuticals	$198.77 million	1.40	-$18.90 million	($0.32)	-14.91
Rapport Therapeutics	N/A	N/A	-$34.79 million	($13.84)	-0.70

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

Profitability

This table compares Vanda Pharmaceuticals and Rapport Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vanda Pharmaceuticals	-9.51%	-3.49%	-2.90%
Rapport Therapeutics	N/A	N/A	N/A

Insider and Institutional Ownership

88.1% of Vanda Pharmaceuticals shares are held by institutional investors. 8.9% of Vanda Pharmaceuticals shares are held 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.

Summary

Rapport Therapeutics beats Vanda Pharmaceuticals on 6 of the 11 factors compared between the two stocks.

About Vanda Pharmaceuticals

Vanda Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of therapies to address high unmet medical needs worldwide. The company’s marketed products include HETLIOZ to treat non-24-hour sleep-wake disorders; and Fanapt oral tablets for the treatment of schizophrenia. Its pipeline products include HETLIOZ (tasimelteon) to treat jet lag disorder, insomnia, delayed sleep phase disorder, sleep disturbances in autism spectrum disorder, and pediatric Non-24; Fanapt (iloperidone) for the treatment of bipolar I disorder and Parkinson’s disease psychosis, as well as a long acting injectable (LAI) formulation to treat schizophrenia; and Tradipitant (VLY-686), a small molecule neurokinin-1 receptor (NK-1R) antagonist to treat gastroparesis, motion sickness, atopic dermatitis, and COVID-19 pneumonia. The company’s pipeline products also include VTR-297, a small molecule histone deacetylase inhibitor to treat hematologic malignancies and with potential use as a treatment for various oncology indications; VQW-765, a small molecule nicotinic acetylcholine receptor partial agonist to treat performance anxiety and psychiatric disorders; VHX-896, an active metabolite of iloperidone; and antisense oligonucleotide molecules. In addition, it offers a portfolio of cystic fibrosis transmembrane conductance regulator activators and inhibitors that include VSJ-110 for the treatment of dry eye and ocular inflammation; and VPO-227 for the treatment of secretory diarrhea disorders comprising cholera. Vanda Pharmaceuticals Inc. was incorporated in 2002 and is headquartered in Washington, the District of Columbia.

About Rapport Therapeutics

Rapport Therapeutics Inc. is a clinical-stage biotechnology company. It focused on discovery and development of transformational small molecule medicines for patients suffering from central nervous system disorders. Rapport Therapeutics Inc. is based in BOSTON.