Analyzing Capstone Therapeutics (NASDAQ:CAPS) and Willis Lease Finance (NASDAQ:WLFC)

Capstone Therapeutics (NASDAQ:CAPS) and Willis Lease Finance (NASDAQ:WLFC) are both small-cap industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.

Profitability

This table compares Capstone Therapeutics and Willis Lease Finance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capstone Therapeutics	-36.51%	-144.43%	-40.48%
Willis Lease Finance	9.38%	11.89%	2.20%

Analyst Recommendations

This is a summary of recent ratings and target prices for Capstone Therapeutics and Willis Lease Finance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capstone Therapeutics	1	0	0	0	1.00
Willis Lease Finance	0	2	1	1	2.75

Willis Lease Finance has a consensus target price of $75.50, suggesting a potential upside of 62.79%. Given Willis Lease Finance’s stronger consensus rating and higher probable upside, analysts plainly believe Willis Lease Finance is more favorable than Capstone Therapeutics.

Institutional and Insider Ownership

2.5% of Capstone Therapeutics shares are owned by institutional investors. Comparatively, 93.7% of Willis Lease Finance shares are owned by institutional investors. 39.3% of Capstone Therapeutics shares are owned by company insiders. Comparatively, 53.3% of Willis Lease Finance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Capstone Therapeutics and Willis Lease Finance”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capstone Therapeutics	$48.11 million	0.04	-$21.23 million	($100.60)	-0.02
Willis Lease Finance	$828.30 million	1.18	$113.76 million	$3.37	13.76

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

Volatility and Risk

Capstone Therapeutics has a beta of -1.35, suggesting that its share price is 235% less volatile than the S&P 500. Comparatively, Willis Lease Finance has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Summary

Willis Lease Finance beats Capstone Therapeutics on 15 of the 15 factors compared between the two stocks.

About Capstone Therapeutics

Capstone Therapeutics Corp., a biotechnology company, develops novel peptides and other molecules for helping patients with under-served medical conditions in the United States. It develops Apo E mimetic peptide molecule AEM-28 and its analogs that have completed Phase Ia and Phase Ib/IIa clinical trials for lipoprotein metabolism. The company was formerly known as OrthoLogic Corp. and changed its name to Capstone Therapeutics Corp. in May 2010. Capstone Therapeutics Corp. was founded in 1987 and is headquartered in Tempe, Arizona.

About Willis Lease Finance

Willis Lease Finance Corporation operates as a lessor and servicer of commercial aircraft and aircraft engines worldwide. The company operates through two segments, Leasing and Related Operations, and Spare Parts Sales. The Leasing and Related Operations segment engages in acquiring and leasing commercial aircraft, aircraft engines, and other aircraft equipment, as well as the purchase and resale of commercial aircraft engines and other aircraft equipment, and other related businesses. The Spare Parts Sales segment purchases and resells after-market engine parts, whole engines, engine modules, and portable aircraft components. The company also focuses on engine management and consulting business. It serves commercial aircraft operators, as well as maintenance, repair, and overhaul organizations. As of December 31, 2023, it had a total lease portfolio of 337 engines, 12 aircraft, one marine vessel, and other leased parts and equipment, and with 74 lessees in 42 countries; and managed a total lease portfolio of 198 engines, aircraft, and related equipment for other parties. The company was founded in 1985 and is headquartered in Coconut Creek, Florida.