Financial Analysis: Janux Therapeutics (NASDAQ:JANX) versus Keros Therapeutics (NASDAQ:KROS)

Janux Therapeutics (NASDAQ:JANX) and Keros Therapeutics (NASDAQ:KROS) are both small-cap healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Risk & Volatility

Janux Therapeutics has a beta of 2.4, suggesting that its share price is 140% more volatile than the S&P 500. Comparatively, Keros Therapeutics has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Institutional & Insider Ownership

75.4% of Janux Therapeutics shares are held by institutional investors. Comparatively, 71.6% of Keros Therapeutics shares are held by institutional investors. 7.9% of Janux Therapeutics shares are held by insiders. Comparatively, 12.6% of Keros Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Janux Therapeutics and Keros Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Janux Therapeutics	$10.00 million	106.81	-$113.62 million	($1.64)	-10.65
Keros Therapeutics	$244.06 million	0.90	$87.01 million	($3.70)	-2.98

Keros Therapeutics has higher revenue and earnings than Janux Therapeutics. Janux Therapeutics is trading at a lower price-to-earnings ratio than Keros Therapeutics, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Janux Therapeutics and Keros Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Janux Therapeutics	2	2	10	1	2.67
Keros Therapeutics	1	4	4	0	2.33

Janux Therapeutics presently has a consensus target price of $36.46, suggesting a potential upside of 108.71%. Keros Therapeutics has a consensus target price of $20.50, suggesting a potential upside of 85.69%. Given Janux Therapeutics’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Janux Therapeutics is more favorable than Keros Therapeutics.

Profitability

This table compares Janux Therapeutics and Keros Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Janux Therapeutics	N/A	-11.89%	-11.13%
Keros Therapeutics	-256.60%	-21.40%	-19.79%

Summary

Janux Therapeutics beats Keros Therapeutics on 11 of the 15 factors compared between the two stocks.

About Janux Therapeutics

Janux Therapeutics, Inc., a clinical stage biopharmaceutical company, develops immunotherapies based on Tumor Activated T Cell Engagers (TRACTr) and Tumor Activated Immunomodulators (TRACIr) platforms technology to treat patients suffering from cancer. The company's clinical candidates comprise JANX007, a prostate-specific membrane antigen or PSMA-TRACTr, which is in Phase 1 clinical trial in adults for the treatment of metastatic castration-resistant prostate cancer (mCRPC) and the vasculature of other tumors; and JANX008, an epidermal growth factor receptor or EGFR-TRACTr that is in Phase 1 clinical trial for the treatment of multiple solid cancers, including colorectal cancer, squamous cell carcinoma of the head and neck, non-small cell lung cancer, and renal cell carcinoma. Its development pipeline also consists of discovery stage products. The company has strategic research collaboration agreement with Merck Sharp & Dohme Corp. to develop TRACTr product candidates. Janux Therapeutics, Inc. was incorporated in 2017 and is headquartered in San Diego, California.

About Keros Therapeutics

Keros Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops and commercializes novel therapeutics for patients with disorders that are linked to dysfunctional signaling of the transforming growth factor-beta family of proteins in the United States. The company's lead product candidate is KER-050, which is being developed for the treatment of low blood cell counts, or cytopenias, including anemia and thrombocytopenia in patients with myelodysplastic syndromes, as well as in patients with myelofibrosis. It also develops KER-012, which is in Phase II clinical trial to treat pulmonary arterial hypertension and cardiovascular disorders; and KER-065 that is in Phase I clinical trial for the treatment of obesity and neuromuscular diseases. In addition, the company has collaboration and license agreement with Hansoh (Shanghai) Healthtech Co., Ltd. to develop, manufacture, and commercialize KER-050 and licensed products containing KER-050. Keros Therapeutics, Inc. was incorporated in 2015 and is headquartered in Lexington, Massachusetts.