Puma Biotechnology (NASDAQ:PBYI) and Shattuck Labs (NASDAQ:STTK) Critical Review

Puma Biotechnology (NASDAQ:PBYI) and Shattuck Labs (NASDAQ:STTK) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Puma Biotechnology and Shattuck Labs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Puma Biotechnology	0	0	1	0	3.00
Shattuck Labs	0	0	2	0	3.00

Puma Biotechnology currently has a consensus target price of $7.00, indicating a potential upside of 41.41%. Shattuck Labs has a consensus target price of $20.00, indicating a potential upside of 105.13%. Given Shattuck Labs’ higher probable upside, analysts clearly believe Shattuck Labs is more favorable than Puma Biotechnology.

Profitability

This table compares Puma Biotechnology and Shattuck Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Puma Biotechnology	9.16%	58.21%	10.40%
Shattuck Labs	-5,268.44%	-63.08%	-56.05%

Volatility & Risk

Puma Biotechnology has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Shattuck Labs has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500.

Valuation & Earnings

This table compares Puma Biotechnology and Shattuck Labs’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Puma Biotechnology	$235.60 million	1.01	$21.59 million	$0.46	10.70
Shattuck Labs	$1.66 million	274.53	-$87.30 million	($2.05)	-4.68

Puma Biotechnology has higher revenue and earnings than Shattuck Labs. Shattuck Labs is trading at a lower price-to-earnings ratio than Puma Biotechnology, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

61.3% of Puma Biotechnology shares are owned by institutional investors. Comparatively, 58.7% of Shattuck Labs shares are owned by institutional investors. 22.7% of Puma Biotechnology shares are owned by company insiders. Comparatively, 9.9% of Shattuck Labs shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Puma Biotechnology beats Shattuck Labs on 8 of the 12 factors compared between the two stocks.

About Puma Biotechnology

Puma Biotechnology, Inc., a biopharmaceutical company, focuses on the development and commercialization of products to enhance cancer care in the United States and internationally. The company offers NERLYNX, an oral version of neratinib that is used to treat adult patients with early stage HER2-overexpressed/amplified breast cancer; and advanced or metastatic HER2-positive breast cancer when combined with capecitabine. It also develops alisertib, a small molecule inhibitor of aurora kinase A for the treatment of hormone receptor positive breast cancer, triple negative breast cancer, small cell lung cancer, and head and neck cancer. The company sells its products through specialty pharmacy and distributor networks. It has license agreements with Pfizer Inc. for the development, manufacture, and commercialization of neratinib (oral), neratinib (intravenous), PB357, and related compounds; and Takeda Pharmaceutical Company Limited for the research, development, and commercialization of alisertib, as well as sub-license agreements with Specialised Therapeutics Asia Pte Ltd., Medison Pharma Ltd., Pint Pharma International SA, Knight Therapeutics, Inc., Pierre Fabre Medicament SAS, and Bixink Therapeutics Co., Ltd. The company was founded in 2010 and is headquartered in Los Angeles, California.

About Shattuck Labs

Shattuck Labs, Inc., a clinical-stage biotechnology company, develops therapeutics for the treatment of cancer and autoimmune disease in the United States. The company's lead product candidate is SL-172154, which is in Phase 1 clinical trial for the treatment of ovarian, fallopian tube, and peritoneal cancers. Shattuck Labs, Inc. was incorporated in 2016 and is headquartered in Austin, Texas.