Krystal Biotech (NASDAQ:KRYS) and Nightstar Therapeutics (NASDAQ:NITE) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

23.1% of Krystal Biotech shares are held by institutional investors. Comparatively, 28.6% of Nightstar Therapeutics shares are held by institutional investors. 45.8% of Krystal Biotech shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Krystal Biotech and Nightstar Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Krystal Biotech N/A N/A -$7.92 million ($1.48) -12.20
Nightstar Therapeutics N/A N/A -$29.68 million ($1.63) -12.54

Nightstar Therapeutics is trading at a lower price-to-earnings ratio than Krystal Biotech, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for Krystal Biotech and Nightstar Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Krystal Biotech 0 0 5 0 3.00
Nightstar Therapeutics 0 1 7 0 2.88

Krystal Biotech presently has a consensus target price of $33.25, suggesting a potential upside of 84.11%. Nightstar Therapeutics has a consensus target price of $32.86, suggesting a potential upside of 60.75%. Given Krystal Biotech’s stronger consensus rating and higher probable upside, research analysts plainly believe Krystal Biotech is more favorable than Nightstar Therapeutics.

Profitability

This table compares Krystal Biotech and Nightstar Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Krystal Biotech N/A -23.26% -22.75%
Nightstar Therapeutics N/A N/A N/A

Summary

Krystal Biotech beats Nightstar Therapeutics on 6 of the 10 factors compared between the two stocks.

About Krystal Biotech

Krystal Biotech, Inc., a gene therapy company, develops and commercializes pharmaceutical products for patients suffering from dermatological diseases in the United States. The company's lead product candidate is KB103, which is in preclinical development to treat dystrophic epidermolysis bullosa, a genetic disease. It also engages in developing KB105, which is in preclinical studies to treat Lamellar Ichthyosis, which is an autosomal recessive disorder. The company was formerly known as Krystal Biotech, LLC and changed its name to Krystal Biotech, Inc. in March 2017. Krystal Biotech, Inc. was founded in 2015 and is based in Pittsburgh, Pennsylvania.

About Nightstar Therapeutics

Nightstar Therapeutics PLC is a clinical-stage gene therapy company, which engages in the development and commercialization of novel one-time treatments for patients suffering from rare inherited retinal diseases. Its pipeline includes NSR-REP1, for the treatment of choroideremia; NSR-RPGR, for the treatment of X-linked retinitis pigmentosa; and NSR-BEST1, for the treatment of vitelliform macular dystrophy. The company was founded by Robert MacLaren on July 6, 2017 and is headquartered in London, the United Kingdom.

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