Reviewing Capstone (OTCMKTS:CAPS) & Mirum Pharmaceuticals (NASDAQ:MIRM)

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

Profitability

This table compares Capstone and Mirum Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capstone	N/A	N/A	N/A
Mirum Pharmaceuticals	-40.34%	-43.47%	-16.35%

Institutional & Insider Ownership

2.5% of Capstone shares are owned by institutional investors. 42.8% of Capstone shares are owned by insiders. Comparatively, 22.9% of Mirum Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Capstone and Mirum Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capstone	0	0	0	0	0.00
Mirum Pharmaceuticals	0	0	10	2	3.17

Mirum Pharmaceuticals has a consensus price target of $56.82, indicating a potential upside of 38.31%. Given Mirum Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Mirum Pharmaceuticals is more favorable than Capstone.

Valuation and Earnings

This table compares Capstone and Mirum Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capstone	N/A	N/A	N/A	N/A	N/A
Mirum Pharmaceuticals	$264.38 million	7.41	-$163.41 million	($2.29)	-17.94

Capstone has higher earnings, but lower revenue than Mirum Pharmaceuticals.

Volatility & Risk

Capstone has a beta of 117.02, suggesting that its stock price is 11,602% more volatile than the S&P 500. Comparatively, Mirum Pharmaceuticals has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.

Summary

Capstone beats Mirum Pharmaceuticals on 6 of the 11 factors compared between the two stocks.

About Capstone

Capstone Holding Corp., through its subsidiaries, engages in the distribution of masonry stone products in the United States. Its masonry stone products include manufactured and natural stone cladding products, natural stone landscape products and related goods for residential and commercial construction. The company was formerly known as Capstone Therapeutics Corp. and changed its name to Capstone Holding Corp. in February 2022. Capstone Holding Corp. was incorporated in 1987 and is headquartered in Tempe, Arizona. Capstone Holding Corp. operates as a subsidiary of BP Peptides, LLC.

About Mirum Pharmaceuticals

Mirum Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of novel therapies for debilitating rare and orphan diseases. Its lead product candidate is LIVMARLI (maralixibat), an orally administered and minimally absorbed ileal bile acid transporter (IBAT) inhibitor that is approved for the treatment of cholestatic pruritus in patients with Alagille syndrome in the United States and internationally. The company is also involved in the commercialization of Cholbam, a cholic acid capsule, which is approved as treatment for pediatric and adult patients with bile acid synthesis disorders due to single enzyme defects and for adjunctive treatment of patients with peroxisomal disorders, including peroxisome biogenesis disorder-Zellweger spectrum disorder and Smith-Lemli-Opitz syndrome; and Chenodal, a tablet, which is approved for the treatment of radiolucent stones in the gallbladder, and under Phase 3 development for the treatment cerebrotendinous xanthomatosis. In addition, it develops Volixibat, an oral and minimally absorbed agent designed to inhibit IBAT, currently under Phase 2b clinical trial for the treatment of adult patients with cholestatic liver diseases. The company was incorporated in 2018 and is headquartered in Foster City, California.