Forte Biosciences (NASDAQ:FBRX – Get Free Report) and Kiniksa Pharmaceuticals (NASDAQ:KNSA – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Analyst Ratings
This is a summary of recent recommendations and price targets for Forte Biosciences and Kiniksa Pharmaceuticals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Forte Biosciences | 0 | 1 | 1 | 0 | 2.50 |
| Kiniksa Pharmaceuticals | 0 | 0 | 1 | 0 | 3.00 |
Forte Biosciences presently has a consensus price target of $2.75, indicating a potential upside of 274.66%. Kiniksa Pharmaceuticals has a consensus price target of $30.00, indicating a potential upside of 77.41%. Given Forte Biosciences’ higher possible upside, equities analysts clearly believe Forte Biosciences is more favorable than Kiniksa Pharmaceuticals.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Forte Biosciences | N/A | N/A | -$31.48 million | ($1.04) | -0.71 |
| Kiniksa Pharmaceuticals | $270.26 million | 4.42 | $14.08 million | $0.18 | 93.95 |
Kiniksa Pharmaceuticals has higher revenue and earnings than Forte Biosciences. Forte Biosciences is trading at a lower price-to-earnings ratio than Kiniksa Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
77.6% of Forte Biosciences shares are owned by institutional investors. Comparatively, 54.0% of Kiniksa Pharmaceuticals shares are owned by institutional investors. 10.5% of Forte Biosciences shares are owned by company insiders. Comparatively, 54.2% of Kiniksa Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
Forte Biosciences has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Kiniksa Pharmaceuticals has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500.
Profitability
This table compares Forte Biosciences and Kiniksa Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Forte Biosciences | N/A | -94.27% | -81.36% |
| Kiniksa Pharmaceuticals | 5.11% | -6.12% | -5.20% |
Summary
Kiniksa Pharmaceuticals beats Forte Biosciences on 9 of the 12 factors compared between the two stocks.
About Forte Biosciences
Forte Biosciences, Inc. operates as a biopharmaceutical company in the United States. The company is developing FB-102 program that addresses various autoimmune diseases, such as graft-versus-host disease, and vitiligo and alopecia areata. Forte Biosciences, Inc. is headquartered in Dallas, Texas.
About Kiniksa Pharmaceuticals
Kiniksa Pharmaceuticals, Ltd., a biopharmaceutical company, focuses on discovering, acquiring, developing, and commercializing therapeutic medicines for patients suffering from debilitating diseases with significant unmet medical needs worldwide. Its product candidates include ARCALYST, an interleukin-1alpha and interleukin-1beta, for the treatment of recurrent pericarditis, which is an inflammatory cardiovascular disease; Mavrilimumab, a monoclonal antibody inhibitor that completed Phase II clinical trials for the treatment of giant cell arteritis; Vixarelimab, a monoclonal antibody, that is in Phase 2b clinical trial for the treatment of prurigo nodularis, a chronic inflammatory skin condition; and KPL-404, a monoclonal antibody inhibitor of the CD40- CD154 interaction, a T-cell co-stimulatory signal critical for B-cell maturation, immunoglobulin class switching, and type 1 immune response. The company was incorporated in 2015 and is based in Hamilton, Bermuda.
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