AstraZeneca (NASDAQ:AZN – Get Free Report) and Fate Therapeutics (NASDAQ:FATE – Get Free Report) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Volatility and Risk
AstraZeneca has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, Fate Therapeutics has a beta of 2.23, meaning that its stock price is 123% more volatile than the S&P 500.
Valuation and Earnings
This table compares AstraZeneca and Fate Therapeutics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AstraZeneca | $54.07 billion | 4.01 | $7.04 billion | $2.49 | 28.05 |
| Fate Therapeutics | $13.63 million | 8.74 | -$186.26 million | ($1.49) | -0.70 |
AstraZeneca has higher revenue and earnings than Fate Therapeutics. Fate Therapeutics is trading at a lower price-to-earnings ratio than AstraZeneca, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares AstraZeneca and Fate Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AstraZeneca | 14.14% | 33.14% | 12.83% |
| Fate Therapeutics | -1,318.93% | -47.17% | -34.60% |
Analyst Recommendations
This is a breakdown of recent ratings for AstraZeneca and Fate Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AstraZeneca | 0 | 1 | 5 | 0 | 2.83 |
| Fate Therapeutics | 0 | 7 | 1 | 0 | 2.13 |
AstraZeneca presently has a consensus target price of $85.00, indicating a potential upside of 21.69%. Fate Therapeutics has a consensus target price of $3.83, indicating a potential upside of 268.59%. Given Fate Therapeutics’ higher possible upside, analysts plainly believe Fate Therapeutics is more favorable than AstraZeneca.
Insider & Institutional Ownership
20.4% of AstraZeneca shares are held by institutional investors. Comparatively, 97.5% of Fate Therapeutics shares are held by institutional investors. 5.5% of Fate Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
AstraZeneca beats Fate Therapeutics on 9 of the 14 factors compared between the two stocks.
About AstraZeneca
AstraZeneca PLC, a biopharmaceutical company, focuses on the discovery, development, manufacture, and commercialization of prescription medicines. The company’s marketed products include Tagrisso, Imfinzi, Lynparza, Calquence, Enhertu, Orpathys, Truqap, Zoladex, Faslodex, Farxiga, Brilinta, Lokelma, Roxadustat, Andexxa, Crestor, Seloken, Onglyza, Bydureon, Fasenra, Breztri, Symbicort, Saphnelo, Tezspire, Pulmicort, Bevespi, and Daliresp for cardiovascular, renal, metabolism, and oncology. Its marketed products also comprise Vaxzevria, Beyfortus, Synagis, FluMist, Soliris, Ultomiris, Strensiq, Koselugo, and Kanuma for covid-19 and rare disease. The company serves primary care and specialty care physicians through distributors and local representative offices in the United Kingdom, rest of Europe, the Americas, Asia, Africa, and Australasia. It has a collaboration agreement with Neurimmune AG to develop and commercialize NI006; BenevolentAI for drug discovery for systemic lupus erythematosus; and Absci Corporation for AI-driven drug discovery against an oncology target. The company was formerly known as Zeneca Group PLC and changed its name to AstraZeneca PLC in April 1999. AstraZeneca PLC was incorporated in 1992 and is headquartered in Cambridge, the United Kingdom.
About Fate Therapeutics
Fate Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops programmed cellular immunotherapies for cancer and immune disorders worldwide. The company's chimeric antigen receptor (CAR)-targeted NK and T-cell product candidates include FT576 to treat multiple myeloma, and FT522, to treat lymphoma and autoimmune disorders. Its CAR T-cell programs include FT819 to treat hematologic malignancies and solid tumors, and FT825 to treat solid tumors. The company has a collaboration and option agreement with Ono Pharmaceutical Co. Ltd. for the development and commercialization of off-the-shelf, iPSC-derived CAR T-cell product candidates for the treatment of cancer. Fate Therapeutics, Inc. was incorporated in 2007 and is headquartered in San Diego, California.
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