Comparing Milestone Pharmaceuticals (NASDAQ:MIST) and Cabaletta Bio (NASDAQ:CABA)

Cabaletta Bio (NASDAQ:CABA) and Milestone Pharmaceuticals (NASDAQ:MIST) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and price targets for Cabaletta Bio and Milestone Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cabaletta Bio	1	1	7	0	2.67
Milestone Pharmaceuticals	1	3	2	0	2.17

Cabaletta Bio currently has a consensus price target of $15.11, indicating a potential upside of 492.59%. Milestone Pharmaceuticals has a consensus price target of $4.50, indicating a potential upside of 67.91%. Given Cabaletta Bio’s stronger consensus rating and higher possible upside, equities analysts plainly believe Cabaletta Bio is more favorable than Milestone Pharmaceuticals.

Profitability

This table compares Cabaletta Bio and Milestone Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cabaletta Bio	N/A	-107.14%	-82.95%
Milestone Pharmaceuticals	N/A	-2,374.19%	-85.19%

Institutional & Insider Ownership

86.2% of Milestone Pharmaceuticals shares are owned by institutional investors. 11.3% of Cabaletta Bio shares are owned by insiders. Comparatively, 19.5% of Milestone Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Cabaletta Bio and Milestone Pharmaceuticals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cabaletta Bio	N/A	N/A	-$115.86 million	($2.53)	-1.01
Milestone Pharmaceuticals	$1.00 million	228.26	-$41.52 million	($0.82)	-3.27

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

Risk and Volatility

Cabaletta Bio has a beta of 3.17, suggesting that its stock price is 217% more volatile than the S&P 500. Comparatively, Milestone Pharmaceuticals has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500.

Summary

Cabaletta Bio beats Milestone Pharmaceuticals on 7 of the 12 factors compared between the two stocks.

About Cabaletta Bio

Cabaletta Bio, Inc., a clinical-stage biotechnology company, focuses on the discovery and development of engineered T cell therapies for patients with B cell-mediated autoimmune diseases. The company's lead product candidate is CABA-201, a fully human anti-CD19 binder for the treatment of Phase 1/2 clinical trials in dermatomyositis, anti-synthetase syndrome, immune-mediated necrotizing myopathy, lupus nephritis, non-renal systemic lupus erythematosus, systemic sclerosis, and generalized myasthenia gravis. It also develops DSG3-CAART, which is in Phase I/II clinical trial for the treatment of mucosal pemphigus vulgaris; and MuSK-CAART, an investigational cell therapy that is in Phase I/II clinical trial for treating patients with anti- muscle-specific kinase antibody positive myasthenia gravis. It has a collaboration with the University of Pennsylvania and the Children's Hospital of Philadelphia; Nanjing IASO Biotherapeutics Co., Ltd; Oxford Biomedica; and WuXi Advanced Therapies, Inc. The company was formerly known as Tycho Therapeutics, Inc. and changed its name to Cabaletta Bio, Inc. in August 2018. Cabaletta Bio, Inc. was incorporated in 2017 and is headquartered in Philadelphia, Pennsylvania.

About Milestone Pharmaceuticals

Milestone Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of cardiovascular medicines. The company's lead product candidate is etripamil, a novel and potent calcium channel blocker, which is in Phase III clinical trial for the treatment of paroxysmal supraventricular tachycardia in the United States and Canada; and Phase II clinical trial for the treatment of atrial fibrillation and rapid ventricular rate. It has a license and collaboration agreement with Ji Xing Pharmaceuticals to develop and commercialize etripamil prophylactic and therapeutic uses in humans, as well as with the Montreal Heart Institute, the WCN network, and other research centers. The company was incorporated in 2003 and is headquartered in Montréal, Canada.