Critical Review: Eloxx Pharmaceuticals (NASDAQ:ELOX) & CASI Pharmaceuticals (NASDAQ:CASI)

CASI Pharmaceuticals (NASDAQ:CASI) and Eloxx Pharmaceuticals (NASDAQ:ELOX) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Insider and Institutional Ownership

22.2% of CASI Pharmaceuticals shares are owned by institutional investors. Comparatively, 2.9% of Eloxx Pharmaceuticals shares are owned by institutional investors. 21.2% of CASI Pharmaceuticals shares are owned by company insiders. Comparatively, 25.9% of Eloxx Pharmaceuticals shares are owned 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.

Profitability

This table compares CASI Pharmaceuticals and Eloxx Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CASI Pharmaceuticals	-183.93%	N/A	-131.54%
Eloxx Pharmaceuticals	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and target prices for CASI Pharmaceuticals and Eloxx Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CASI Pharmaceuticals	1	0	0	0	1.00
Eloxx Pharmaceuticals	1	0	2	2	3.00

Eloxx Pharmaceuticals has a consensus price target of $38.33, suggesting a potential upside of 148.59%. Given Eloxx Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Eloxx Pharmaceuticals is more favorable than CASI Pharmaceuticals.

Volatility & Risk

CASI Pharmaceuticals has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Eloxx Pharmaceuticals has a beta of -1862.26, indicating that its stock price is 186,326% less volatile than the S&P 500.

Earnings and Valuation

This table compares CASI Pharmaceuticals and Eloxx Pharmaceuticals”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CASI Pharmaceuticals	$26.85 million	0.10	-$39.26 million	($3.01)	-0.07
Eloxx Pharmaceuticals	$6.36 million	9.80	-$5.99 million	($1.54)	-10.01

Eloxx Pharmaceuticals has lower revenue, but higher earnings than CASI Pharmaceuticals. Eloxx Pharmaceuticals is trading at a lower price-to-earnings ratio than CASI Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Summary

Eloxx Pharmaceuticals beats CASI Pharmaceuticals on 10 of the 14 factors compared between the two stocks.

About CASI Pharmaceuticals

CASI Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes therapeutics and pharmaceutical products in the People's Republic of China, the United States, and internationally. It offers EVOMELA, an intravenous formulation of melphalan for use as a conditioning treatment prior to stem cell transplantation, and as a palliative treatment for patients with multiple myeloma. The company's other hematology/oncology assets in pipeline include CNCT 19, an autologous CD19 CAR-T investigative product; BI-1206, novel anti-Fc?RIIB antibody, for the treatment of solid tumors and relapsed/refractory non-hodgkin lymphoma; CB-5339, a novel VCP/p97 inhibitor that focuses on valosin-containing protein (VCP)/p97 as a novel target in protein homeostasis, DNA damage response, and other cellular stress pathways for therapeutic use in the treatment of patients with various malignancies; CID-103, a human IgG1 anti-CD38 monoclonal antibody; and Thiotepa, a chemotherapeutic agent, which has various indications, including use as a conditioning treatment for use prior to certain allogeneic haemopoietic stem cell transplants. The company has licensing agreements with Juventas Cell Therapy Ltd.; BioInvent International AB; Black Belt Therapeutics Limited; Cleave Therapeutics, Inc.; and Acrotech Biopharma L.L.C. to develop and commercialize its commercial product EVOMELA. It also has distribution agreements with China Resources Pharmaceutical Commercial Group International Trading Co., Ltd; Pharmathen Global BV; and Riemser Pharma GmbH. CASI Pharmaceuticals, Inc. was incorporated in 1991 and is based in Beijing, the People's Republic of China.

About Eloxx Pharmaceuticals

Eloxx Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. It engaged in developing novel small molecule medicines to treat many rare and ultra-rare genetic diseases caused by nonsense mutations. The company’s lead product candidate consists ELX-02, is an optimized aminoglycoside designed to restore full-length functional proteins. It operates primarily in Waltham, MA and Rehovot, Israel. Eloxx Pharmaceuticals Inc., formerly known as Sevion Therapeutics Inc., is based in WALTHAM, United States.