Fortress Biotech (NASDAQ: FBIO) and Alimera Sciences (NASDAQ:ALIM) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Valuation & Earnings

This table compares Fortress Biotech and Alimera Sciences’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fortress Biotech $16.48 million 11.22 -$55.09 million ($1.82) -2.01
Alimera Sciences $34.33 million 2.62 -$33.17 million ($0.31) -4.19

Alimera Sciences has higher revenue and earnings than Fortress Biotech. Alimera Sciences is trading at a lower price-to-earnings ratio than Fortress Biotech, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Fortress Biotech has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Alimera Sciences has a beta of 2.17, suggesting that its stock price is 117% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Fortress Biotech and Alimera Sciences, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fortress Biotech 0 0 4 0 3.00
Alimera Sciences 0 0 3 0 3.00

Fortress Biotech presently has a consensus price target of $11.00, indicating a potential upside of 201.37%. Alimera Sciences has a consensus price target of $4.00, indicating a potential upside of 207.69%. Given Alimera Sciences’ higher probable upside, analysts clearly believe Alimera Sciences is more favorable than Fortress Biotech.

Insider and Institutional Ownership

12.1% of Fortress Biotech shares are held by institutional investors. Comparatively, 41.9% of Alimera Sciences shares are held by institutional investors. 33.3% of Fortress Biotech shares are held by company insiders. Comparatively, 14.7% of Alimera Sciences shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Fortress Biotech and Alimera Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fortress Biotech -65.80% -61.43% -33.68%
Alimera Sciences -55.29% N/A -28.43%

Summary

Alimera Sciences beats Fortress Biotech on 9 of the 12 factors compared between the two stocks.

Fortress Biotech Company Profile

Fortress Biotech, Inc., formerly Coronado Biosciences, Inc., is a biopharmaceutical company. The Company is involved in the development of immunotherapy agents for the treatment of autoimmune diseases and cancer. Its sole product candidate is CNDO-109. The Company is also focused on acquiring, developing and commercializing pharmaceutical and biotechnology products. The Company’s product, CNDO-109, is a lysate (disrupted Closteroviridae (CTV)-1 cells, cell membrane fragments, cell proteins and other cellular components) that activates donor Natural Killer (NK) cells. CTV-1 is a leukemic cell line re-classified as a T-cell acute lymphocytic leukemia (ALL). The Company holds the license to develop and commercialize CNDO-109 to activate NK cells for the treatment of cancer-related and other conditions, and a non-exclusive license to certain clinical data solely for use in the Investigational new drug (IND) for CNDO-109. The Company is conducting the Phase I clinical studies of CNDO-109.

Alimera Sciences Company Profile

Alimera Sciences, Inc. (Alimera) is a pharmaceutical company. The Company is engaged in the research, development and commercialization of prescription ophthalmic pharmaceuticals. The Company operates through two segments: U.S. and International. The Company focuses on diseases affecting the back of the eye or retina. The Company’s product is ILUVIEN, which is developed to treat diabetic macular edema (DME). DME is a disease of the retina that affects individuals with diabetes and can lead to severe vision loss and blindness. In the United States, ILUVIEN is indicated for the treatment of DME in patients who have been treated with a course of corticosteroids and did not have a rise in intraocular pressure (IOP). In the European Economic Area (EEA) countries, ILUVIEN is indicated for the treatment of vision impairment associated with DME considered insufficiently responsive to available therapies.

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