Critical Review: X4 Pharmaceuticals (NASDAQ:XFOR) & Syndax Pharmaceuticals (NASDAQ:SNDX)

Syndax Pharmaceuticals (NASDAQ:SNDX) and X4 Pharmaceuticals (NASDAQ:XFOR) are both small-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.

Earnings & Valuation

This table compares Syndax Pharmaceuticals and X4 Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Syndax Pharmaceuticals	$172.35 million	8.74	-$285.42 million	($2.51)	-6.77
X4 Pharmaceuticals	$35.11 million	8.22	-$79.20 million	($1.20)	-2.43

X4 Pharmaceuticals has lower revenue, but higher earnings than Syndax Pharmaceuticals. Syndax Pharmaceuticals is trading at a lower price-to-earnings ratio than X4 Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Syndax Pharmaceuticals and X4 Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Syndax Pharmaceuticals	1	0	10	0	2.82
X4 Pharmaceuticals	1	1	4	0	2.50

Syndax Pharmaceuticals presently has a consensus price target of $41.80, suggesting a potential upside of 146.03%. X4 Pharmaceuticals has a consensus price target of $11.25, suggesting a potential upside of 286.60%. Given X4 Pharmaceuticals’ higher possible upside, analysts clearly believe X4 Pharmaceuticals is more favorable than Syndax Pharmaceuticals.

Volatility and Risk

Syndax Pharmaceuticals has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, X4 Pharmaceuticals has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.

Profitability

This table compares Syndax Pharmaceuticals and X4 Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Syndax Pharmaceuticals	-87.52%	-372.94%	-39.11%
X4 Pharmaceuticals	-568.80%	-63.05%	-36.89%

Institutional & Insider Ownership

72.0% of X4 Pharmaceuticals shares are held by institutional investors. 4.8% of Syndax Pharmaceuticals shares are held by insiders. Comparatively, 1.1% of X4 Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

X4 Pharmaceuticals beats Syndax Pharmaceuticals on 8 of the 14 factors compared between the two stocks.

About Syndax Pharmaceuticals

Syndax Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops therapies for the treatment of cancer. Its lead product candidates are revumenib, a potent, selective, small molecule inhibitor of the menin-MLL binding interaction for the treatment of KMT2A rearranged, acute leukemias, and solid tumor; and SNDX-6352 or axatilimab, a monoclonal antibody that blocks the colony stimulating factor 1, or CSF-1 receptor for the treatment of patients with chronic graft versus host disease (cGVHD) and idiopathic pulmonary fibrosis (IPF). The company is also developing Entinostat. It has an agreement with Eddingpharm International Company Limited for licensing, development, and commercialization of Entinostat. Syndax Pharmaceuticals, Inc. was incorporated in 2005 and is headquartered in Waltham, Massachusetts.

About X4 Pharmaceuticals

X4 Pharmaceuticals, Inc., a late-stage clinical biopharmaceutical company, focuses on the research, development, and commercialization of novel therapeutics for the treatment of rare diseases. Its lead product candidate is mavorixafor, a small molecule inhibitor of the chemokine receptor C-X-C chemokine receptor type 4 (CXCR4), which is in Phase III clinical trial for the treatment of patients with warts, hypogammaglobulinemia, infections, and myelokathexis syndrome; and Phase II clinical trial to treat congenital, idiopathic, or cyclic neutropenia. The company is also developing X4P-003, a CXCR4 antagonist for the treatment of CXCR4 dependent disorders and primary immunodeficiencies; and X4P-002, a CXCR4 antagonist for the treatment of blood-brain barrier diseases. It has a license agreement with Abbisko Therapeutics Co Ltd. to develop, manufacture, and commercialize mavorixafor in combination with checkpoint inhibitors or other agents in oncology indications. The company is headquartered in Boston, Massachusetts.