Critical Analysis: Xenon Pharmaceuticals (NASDAQ:XENE) versus Checkpoint Therapeutics (NASDAQ:CKPT)

Xenon Pharmaceuticals (NASDAQ:XENE) and Checkpoint Therapeutics (NASDAQ:CKPT) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Risk and Volatility

Xenon Pharmaceuticals has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Checkpoint Therapeutics has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.

Profitability

This table compares Xenon Pharmaceuticals and Checkpoint Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xenon Pharmaceuticals	N/A	-24.16%	-23.15%
Checkpoint Therapeutics	-50,336.89%	N/A	-672.98%

Institutional and Insider Ownership

95.5% of Xenon Pharmaceuticals shares are owned by institutional investors. Comparatively, 22.0% of Checkpoint Therapeutics shares are owned by institutional investors. 5.5% of Xenon Pharmaceuticals shares are owned by company insiders. Comparatively, 2.1% of Checkpoint Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Xenon Pharmaceuticals and Checkpoint Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xenon Pharmaceuticals	$9.43 million	325.29	-$182.39 million	($2.71)	-14.94
Checkpoint Therapeutics	$100,000.00	1,066.97	-$51.85 million	($2.77)	-0.86

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

Analyst Ratings

This is a summary of recent recommendations for Xenon Pharmaceuticals and Checkpoint Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xenon Pharmaceuticals	0	0	9	1	3.10
Checkpoint Therapeutics	0	0	2	0	3.00

Xenon Pharmaceuticals presently has a consensus price target of $58.78, suggesting a potential upside of 44.95%. Checkpoint Therapeutics has a consensus price target of $12.00, suggesting a potential upside of 421.74%. Given Checkpoint Therapeutics’ higher probable upside, analysts clearly believe Checkpoint Therapeutics is more favorable than Xenon Pharmaceuticals.

Summary

Xenon Pharmaceuticals beats Checkpoint Therapeutics on 9 of the 15 factors compared between the two stocks.

About Xenon Pharmaceuticals

Xenon Pharmaceuticals Inc., a clinical-stage biopharmaceutical company, engages in developing therapeutics to treat patients with neurological disorders in Canada. Its clinical development pipeline includes XEN496, a Kv7 potassium channel opener that is Phase III clinical trials for the treatment of KCNQ2 developmental and epileptic encephalopathy; and XEN1101, a Kv7 potassium channel opener, which is in Phase II clinical trial for the treatment of epilepsy and other neurological disorders. The company's product candidates also comprise NBI-921352, a selective Nav1.6 sodium channel inhibitor that is in Phase II clinical trials for the treatment of SCN8A developmental and epileptic encephalopathy, and other indications, including adult focal epilepsy. It has a license and collaboration agreement with the Neurocrine Biosciences, Inc. to develop treatments for epilepsy. The company was incorporated in 1996 and is headquartered in Burnaby, Canada.

About Checkpoint Therapeutics

Checkpoint Therapeutics, Inc., a clinical-stage immunotherapy and targeted oncology company, focuses on the acquisition, development, and commercialization of novel treatments for patients with solid tumor cancers in the United States and internationally. The company's lead antibody product candidate is Cosibelimab, which is in Phase 1 clinical trial to treat patients with selected recurrent or metastatic cancers; and CK-302, a product candidate in preclinical trials for hematological malignancies and solid tumors. It is developing Olafertinib, which is in Phase 3 clinical trials for the treatment of adult patients with metastatic non-small cell lung cancer; CK-103 for the treatment of various advanced and metastatic solid tumor cancers; and Anti-Carbonic Anhydrase IX (CAIX) antibody, a product candidate in preclinical trials to recognize CAIX expressing cells and kill them via antibody-dependent cellular cytotoxicity and complement-dependent cytotoxicity. The company has licensing and collaboration agreements with Adimab, LLC for the development of Cosibelimab; NeuPharma, Inc., to develop and commercialize Olafertinib; and Jubilant Biosys Limited for the development and commercialization of novel compounds that inhibit BET bromodomains. The company was incorporated in 2014 and is based in Waltham, Massachusetts. Checkpoint Therapeutics, Inc. is a subsidiary of Fortress Biotech, Inc.