Rafael (NYSE:RFL – Get Free Report) and 60 Degrees Pharmaceuticals (NASDAQ:SXTP – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.
Risk and Volatility
Rafael has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, 60 Degrees Pharmaceuticals has a beta of 2.94, meaning that its stock price is 194% more volatile than the S&P 500.
Valuation and Earnings
This table compares Rafael and 60 Degrees Pharmaceuticals”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rafael | $920,000.00 | 67.53 | -$30.52 million | ($0.85) | -1.41 |
| 60 Degrees Pharmaceuticals | $943,721.00 | 3.90 | -$7.95 million | ($13.88) | -0.25 |
60 Degrees Pharmaceuticals has higher revenue and earnings than Rafael. Rafael is trading at a lower price-to-earnings ratio than 60 Degrees Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and target prices for Rafael and 60 Degrees Pharmaceuticals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rafael | 1 | 0 | 0 | 0 | 1.00 |
| 60 Degrees Pharmaceuticals | 1 | 1 | 2 | 0 | 2.25 |
60 Degrees Pharmaceuticals has a consensus price target of $17.60, indicating a potential upside of 406.47%. Given 60 Degrees Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe 60 Degrees Pharmaceuticals is more favorable than Rafael.
Institutional and Insider Ownership
11.3% of Rafael shares are held by institutional investors. Comparatively, 8.0% of 60 Degrees Pharmaceuticals shares are held by institutional investors. 32.9% of Rafael shares are held by company insiders. Comparatively, 1.7% of 60 Degrees Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Rafael and 60 Degrees Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rafael | -3,044.70% | -32.82% | -27.55% |
| 60 Degrees Pharmaceuticals | -616.15% | N/A | -140.98% |
Summary
60 Degrees Pharmaceuticals beats Rafael on 9 of the 14 factors compared between the two stocks.
About Rafael
Rafael Holdings, Inc. primarily engages in holding interests in clinical and early-stage pharmaceutical companies, and commercial real estate assets in the United States and Israel. It operates in two segments, Healthcare and Real Estate. The company engages in the development and commercialization of therapies that exploit the metabolic differences between normal cells and cancer cells. Its lead drug candidate is CPI-613 (devimistat), currently under Phase III clinical study for the treatment of metastatic pancreatic cancer and acute myeloid leukemia. The company is also involved in developing Promitil, a molecule designed for the targeted delivery of mitomycin-C in a proprietary prodrug form, completed Phase 1B clinical studies; Folate-targeted Promitil (Promi-Fol) which is aimed at local treatment (intravesical) of superficial bladder cancer; and Promi-Dox, a highly potent dual drug liposome with MLP and doxorubicin targeting a potential basket of tumors. In addition, it engages in the development of surgical and procedural devices, including orthopedic arthroscopy instrumentation. Rafael Holdings, Inc. was incorporated in 2017 and is headquartered in Newark, New Jersey.
About 60 Degrees Pharmaceuticals
60 Degrees Pharmaceuticals, Inc., a specialty pharmaceutical company, engages in the development and commercialization of therapies for the prevention and treatment of infectious diseases in the United States. The company offers Arakoda for malaria preventative treatment. It also engages in the development of Tafenoquine (Arakoda regimen) that is in Phase IIb clinical trial for COVID-19 indications; Tafenoquine, which is in phase IIA clinical trials for babesiosis, fungal pneumonias, and candidiasis disease; and Celgosivir for respiratory viruses and dengue. The company was founded in 2010 and is headquartered in Washington, the District of Columbia.
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