High risk comes with high potential rewards, and some stocks take this a step further by staking their entire business model on a single catalyst for growth. These stocks can make good investments, because their potential gains vastly outweigh potential losses (which are capped at 100%). 

Here are two dirt cheap Robinhood stocks poised to deliver multi-bagger returns if they successfully execute on their long-term growth drivers. The first pick is Corbus Pharmaceuticals (CRBP -7.79%), a small-cap biotech betting everything on its cannabinoid drug lenabasum. The second pick is Virgin Galactic (SPCE -2.86%), a mid-cap space tourism company with the potential for rocketship returns. Both companies have market caps below $5 billion, and enjoy binary (yes or no) catalysts for explosive growth. 

Paper rocket made out of dollar bills

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1. Corbus Pharmaceuticals 

 Corbus Pharmaceuticals is a late-stage biotech company with an exciting all or nothing business model. 

The company is working on a drug called lenabasum, which targets the endocannabinoid system to fight autoimmune diseases like systemic sclerosis, dermatomyositis, and lupus erythematosus. All three indications have successfully passed Phase 1 testing, and the drug is on schedule for Phase 3 data for systemic sclerosis this summer, with a projected launch in 2021.

If lenabasum wins regulatory approval, Corbus Pharmaceuticals stock could skyrocket significantly higher than its current $630 million market cap. According to Jefferies, systemic sclerosis has 200,000 patients in the U.S., E.U, and Japan, representing a $1.4 billion- $2.2 billion potential market opportunity for the drug in this indication alone.

That's not even including lenabasum's other indications like dermatomyositis and cystic fibrosis, which could potentially generate $0.7-$3 billion in combined annual revenue.

While Corbus Pharmaceuticals has a preclinical library of over 700 drug candidates, the company looks like an all-or-nothing bet on lenabasum. That's because the biotech's relatively small cash position ($63.5 million as of the second quarter) may not be enough to bring its other drugs to market without significant equity dilution for investors.

2. Virgin Galactic 

Virgin Galactic is another cheap Robinhood stock that could potentially skyrocket (literally). Trading at $17.53 at the time of writing, this space tourism company's relatively small $4.1 billion market cap could become significantly bigger if it successfully sends passengers to space.

Virgin Galactic's key growth catalyst will be the launch of its maiden voyage with passengers. But before taking this step, the company is shoring up its balance sheet with cash, and conducting a series of tests to establish the safety and viability of its space mission.

Most recently, Virgin Galactic closed a public offering of 23.6 million shares of common stock at $19.50 per share, a deal that netted the company $460.2 million. While dilutive equity raises can be discouraging for some investors, this is the right move because it buys Virgin Galactic more runway to safely execute its strategy. The new cash boosts the company's already strong balance sheet, which stood at $359.9 million as of second quarter earnings report on August 3.

Virgin Galactic completed eight test flights in the second quarter, and has cleared 27 of 29 verification and validation elements required by the FAA to conduct spaceflight missions. The company has also registered 600 potential paying customers and plans to send its first passengers to space in 2021.