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

Volatility and Risk

Fortress Biotech has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, KalVista Pharmaceuticals has a beta of 2.54, indicating that its share price is 154% more volatile than the S&P 500.

Profitability

This table compares Fortress Biotech and KalVista Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fortress Biotech -53.95% -54.88% -30.67%
KalVista Pharmaceuticals -4,191.47% -60.42% -55.11%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fortress Biotech $108.97 million 2.16 -$71.48 million ($1.48) -3.14
KalVista Pharmaceuticals $1.50 million 45.20 -$15.90 million N/A N/A

KalVista Pharmaceuticals has higher revenue, but lower earnings than Fortress Biotech.

Insider and Institutional Ownership

12.0% of Fortress Biotech shares are owned by institutional investors. Comparatively, 75.7% of KalVista Pharmaceuticals shares are owned by institutional investors. 33.3% of Fortress Biotech shares are owned by insiders. Comparatively, 49.1% of KalVista Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Fortress Biotech and KalVista Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fortress Biotech 0 0 5 0 3.00
KalVista Pharmaceuticals 0 0 1 0 3.00

Fortress Biotech currently has a consensus price target of $10.60, indicating a potential upside of 127.96%. KalVista Pharmaceuticals has a consensus price target of $18.00, indicating a potential upside of 157.88%. Given KalVista Pharmaceuticals’ higher possible upside, analysts plainly believe KalVista Pharmaceuticals is more favorable than Fortress Biotech.

Summary

KalVista Pharmaceuticals beats Fortress Biotech on 6 of the 11 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.

KalVista Pharmaceuticals Company Profile

KalVista Pharmaceuticals, Inc., formerly Carbylan Therapeutics, Inc., is a clinical-stage pharmaceutical company. The Company is focused on the discovery, development, and commercialization of small molecule protease inhibitors for a range of diseases. The Company has developed a portfolio of small molecule plasma kallikrein inhibitors targeting hereditary angioedema (HAE) and diabetic macular edema (DME). The Company is developing a plasma kallikrein inhibitor, which is administered directly into the eye. The Company is engaged in advancing several product candidates developed from its portfolio into early clinical trials. The Company is progressing additional oral candidates towards regulatory preclinical studies. The Company’s HAE product candidate, KVD818, is an inhibitor of plasma kallikrein. The Company has initiated clinical testing of KVD818 in a Phase I clinical trial. It has completed an open-label single ascending dose Phase I trial in DME patients with KVD001.

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