Contrasting Eton Pharmaceuticals (NASDAQ:ETON) & Repare Therapeutics (NASDAQ:RPTX)

Repare Therapeutics (NASDAQ:RPTX) and Eton Pharmaceuticals (NASDAQ:ETON) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Risk and Volatility

Repare Therapeutics has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Eton Pharmaceuticals has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Profitability

This table compares Repare Therapeutics and Eton Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Repare Therapeutics	-99.76%	-40.87%	-35.07%
Eton Pharmaceuticals	-15.81%	-36.29%	-16.84%

Insider and Institutional Ownership

85.1% of Repare Therapeutics shares are held by institutional investors. Comparatively, 27.9% of Eton Pharmaceuticals shares are held by institutional investors. 21.6% of Repare Therapeutics shares are held by insiders. Comparatively, 14.9% of Eton Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Repare Therapeutics and Eton Pharmaceuticals”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Repare Therapeutics	$66.52 million	0.82	-$93.80 million	($2.00)	-0.64
Eton Pharmaceuticals	$34.68 million	9.02	-$940,000.00	($0.22)	-54.59

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Repare Therapeutics and Eton Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Repare Therapeutics	0	1	3	0	2.75
Eton Pharmaceuticals	0	0	2	0	3.00

Repare Therapeutics presently has a consensus price target of $7.00, indicating a potential upside of 446.88%. Eton Pharmaceuticals has a consensus price target of $17.50, indicating a potential upside of 45.71%. Given Repare Therapeutics’ higher possible upside, analysts clearly believe Repare Therapeutics is more favorable than Eton Pharmaceuticals.

Summary

Eton Pharmaceuticals beats Repare Therapeutics on 8 of the 14 factors compared between the two stocks.

About Repare Therapeutics

Repare Therapeutics Inc., a clinical-stage precision oncology company, engages in the discovery and development of therapeutics by using its synthetic lethality approach in Canada and the United States. It uses its SNIPRx, a proprietary, genome-wide, and CRISPR-enabled platform, to discover, validate, and build a pipeline of SL-based therapeutics that focuses on genomic instability, including DNA damage repair. The company's lead product candidate is Camonsertib (RP-3500), an oral small molecule inhibitor under Phase ½ development for the treatment of solid tumors with specific DNA damage repair-related genomic alterations. It is also developing Lunresertib (RP-6306), a PKMYT1 Inhibitor, which is under Phase 1 clinical trial for tumors with genetic alterations characterized by CCNE1 amplification; RP-1664, an oral PLK4 inhibitor, under Phase 1 clinical trial designed to harness the synthetic lethal relationship with TRIM37 amplification or overexpression in solid tumors; and RP-3467, a polymerase theta adenosinetriphosphatase (ATPase) inhibitor, a SL target associated with BRCA mutations and other genomic alterations. The company has license and collaboration agreement with Hoffmann-La Roche Inc. and F. Hoffmann-La Roche Ltd; Bristol-Myers Squibb Company; New York University; and Ono Pharmaceutical Co., as well as a clinical study and collaboration agreement with Debiopharm to explore the synthetic lethal combination of PKMYT1 and WEE1 inhibition in cancer. Repare Therapeutics Inc. was incorporated in 2016 and is headquartered in Montréal, Canada.

About Eton Pharmaceuticals

Eton Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on developing, acquiring, and commercializing pharmaceutical products for rare diseases. The company offers ALKINDI SPRINKLE, a replacement therapy for adrenocortical insufficiency in children under 17 years of age; Carglumic Acid for the treatment of acute and chronic hyperammonemia due to N-acetylglutamate Synthase deficiency; Betaine Anhydrous for the treatment of homocystinuria; and Nitisinone for the treatment of tyrosinemia type 1. It also provides Zeneo hydrocortisone autoinjector for the treatment of adrenal crisis. Eton Pharmaceuticals, Inc. was incorporated in 2017 and is based in Deer Park, Illinois.