Journey Medical (NASDAQ:DERM – Get Free Report) and KalVista Pharmaceuticals (NASDAQ:KALV – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.
Institutional & Insider Ownership
7.3% of Journey Medical shares are held by institutional investors. 15.0% of Journey Medical shares are held by company insiders. Comparatively, 10.5% of KalVista Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Journey Medical and KalVista Pharmaceuticals”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Journey Medical | $56.13 million | 3.14 | -$14.67 million | ($0.39) | -19.41 |
| KalVista Pharmaceuticals | N/A | N/A | -$183.44 million | ($3.69) | -3.36 |
Journey Medical has higher revenue and earnings than KalVista Pharmaceuticals. Journey Medical is trading at a lower price-to-earnings ratio than KalVista Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Journey Medical has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, KalVista Pharmaceuticals has a beta of 0.05, meaning that its stock price is 95% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Journey Medical and KalVista Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Journey Medical | 0 | 0 | 3 | 0 | 3.00 |
| KalVista Pharmaceuticals | 0 | 0 | 8 | 1 | 3.11 |
Journey Medical presently has a consensus price target of $9.50, indicating a potential upside of 25.50%. KalVista Pharmaceuticals has a consensus price target of $26.2857, indicating a potential upside of 111.81%. Given KalVista Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe KalVista Pharmaceuticals is more favorable than Journey Medical.
Profitability
This table compares Journey Medical and KalVista Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Journey Medical | -14.76% | -52.03% | -11.28% |
| KalVista Pharmaceuticals | N/A | -134.07% | -82.65% |
Summary
Journey Medical beats KalVista Pharmaceuticals on 8 of the 14 factors compared between the two stocks.
About Journey Medical
Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant nodular acne; and Amzeeq, a topical formulation of minocycline for the treatment of inflammatory lesions of non-nodular moderate to severe acne vulgaris. It also offers Zilxi, a topical minocycline treatment for inflammatory lesions of rosacea; Exelderm cream and solution an antifungal intended for topical use; Targadox, an oral doxycycline drug for adjunctive therapy for severe acne; and Luxamend, a water-based emulsion formulated to provide a moist healing environment for superficial wounds; minor cuts or scrapes; dermal ulcers; donor sites; first- and second-degree burns, including sunburns; and radiation dermatitis. In addition, the company sells sulconazole nitrate cream and solution indicated for the treatment of tinea cruris, tinea corporis, and tinea versicolor; and doxycycline hyclate tablets, as an adjunctive therapy for severe acne. The company was formerly known as Coronado Dermatology, Inc. and changed its name to Journey Medical Corporation. Journey Medical Corporation was incorporated in 2014 and is headquartered in Scottsdale, Arizona. Journey Medical Corporation is a subsidiary of Fortress Biotech, Inc.
About KalVista Pharmaceuticals
KalVista Pharmaceuticals, Inc., a clinical stage pharmaceutical company, engages in the discovery, development, and commercialization of drug therapies inhibitors for diseases with unmet needs. The company’s product candidate is Sebetralstat, a small molecule plasma kallikrein inhibitor targeting the disease of hereditary angioedema (HAE). It develops Factor XIIa, an oral inhibitor for the treatment of HAE which is in preclinical trial. In addition, the company is developing an orally disintegrating tablet formulation, including KONFIDENT-KID for pediatric use with HAE; KONFIDENT-S for adolescent and adult patients with type I or type II HAE; and KONFIDENT for a potential oral therapy for HAE attacks. The company is headquartered in Cambridge, Massachusetts.
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