Galecto (NASDAQ:GLTO) and Pasithea Therapeutics (NASDAQ:KTTA) Critical Survey

Galecto (NASDAQ:GLTO) and Pasithea Therapeutics (NASDAQ:KTTA) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Risk & Volatility

Galecto has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Pasithea Therapeutics has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Profitability

This table compares Galecto and Pasithea Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Galecto	N/A	-76.96%	-66.59%
Pasithea Therapeutics	N/A	-81.57%	-74.31%

Analyst Recommendations

This is a summary of recent recommendations for Galecto and Pasithea Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galecto	0	0	1	0	3.00
Pasithea Therapeutics	0	0	0	0	0.00

Galecto presently has a consensus price target of $10.00, indicating a potential upside of 89.39%. Given Galecto’s stronger consensus rating and higher possible upside, equities analysts clearly believe Galecto is more favorable than Pasithea Therapeutics.

Insider and Institutional Ownership

14.2% of Galecto shares are owned by institutional investors. Comparatively, 23.9% of Pasithea Therapeutics shares are owned by institutional investors. 11.9% of Galecto shares are owned by company insiders. Comparatively, 16.3% of Pasithea Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Galecto and Pasithea Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galecto	N/A	N/A	-$38.35 million	($19.14)	-0.28
Pasithea Therapeutics	$20,000.00	177.24	-$15.96 million	N/A	N/A

Pasithea Therapeutics has higher revenue and earnings than Galecto.

Summary

Galecto beats Pasithea Therapeutics on 6 of the 10 factors compared between the two stocks.

About Galecto

Galecto, Inc., a clinical-stage biotechnology company, develops molecules for the treatment of fibrosis, cancer, inflammation, and other related diseases. The company's lead product candidate is GB2064, which is in Phase IIa for the treatment of myelofibrosis. It also develops GB2064, a selective oral small molecule inhibitor of LOXL2 that is in Phase 2a clinical trial for the treatment of fibrotic diseases, including cancer and myelofibrosis; and GB1211, a selective oral galectin-3 inhibitor that is in Phase IIa for the treatment of cancer, as well as in Phase Ib/IIa for fibrosis. Galecto, Inc. was founded in 2011 and is headquartered in Copenhagen, Denmark.

About Pasithea Therapeutics

Pasithea Therapeutics Corp., a biotechnology company, engages in discovery, research, and development of treatments for central nervous system disorders, RASopathies, and other diseases. Its lead product candidate PAS-004, a next-generation macrocyclic mitogen-activated protein kinase, or MEK inhibitor for use in the treatment of a range of RASopathies, including neurofibromatosis type 1 oncology indications. The company intends to develop PAS-003, to treat amyotrophic lateral sclerosis; and PAS-001, to treat schizophrenia. Pasithea Therapeutics Corp. was incorporated in 2020 and is headquartered in Miami Beach, Florida.