Fate Therapeutics (NASDAQ:FATE – Get Free Report) and Ovid Therapeutics (NASDAQ:OVID – Get Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.
Insider and Institutional Ownership
97.5% of Fate Therapeutics shares are held by institutional investors. Comparatively, 72.2% of Ovid Therapeutics shares are held by institutional investors. 5.5% of Fate Therapeutics shares are held by company insiders. Comparatively, 13.1% of Ovid Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Fate Therapeutics and Ovid Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fate Therapeutics | 0 | 6 | 1 | 0 | 2.14 |
| Ovid Therapeutics | 0 | 0 | 5 | 1 | 3.17 |
Volatility & Risk
Fate Therapeutics has a beta of 2.21, meaning that its stock price is 121% more volatile than the S&P 500. Comparatively, Ovid Therapeutics has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.
Profitability
This table compares Fate Therapeutics and Ovid Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fate Therapeutics | -2,025.05% | -50.95% | -36.76% |
| Ovid Therapeutics | -574.44% | -58.87% | -43.18% |
Earnings & Valuation
This table compares Fate Therapeutics and Ovid Therapeutics”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fate Therapeutics | $13.63 million | 8.46 | -$186.26 million | ($1.45) | -0.69 |
| Ovid Therapeutics | $570,000.00 | 155.94 | -$26.43 million | ($0.53) | -2.36 |
Ovid Therapeutics has lower revenue, but higher earnings than Fate Therapeutics. Ovid Therapeutics is trading at a lower price-to-earnings ratio than Fate Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
Ovid Therapeutics beats Fate Therapeutics on 8 of the 15 factors compared between the two stocks.
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.
About Ovid Therapeutics
Ovid Therapeutics Inc., a biopharmaceutical company, engages in the development of impactful medicines for patients and families with epilepsies and seizure-related neurological disorders in the United States. The company is developing soticlestat, a novel cholesterol 24 hydroxylase inhibitor, which is in Phase 3 clinical trials for the potential treatment of patients with resistant epilepsies; OV329, a GABA aminotransferase inhibitor which is in Phase 1 clinical trials for the treatment of seizures associated with tuberous sclerosis complex and infantile spasms; and OV350, a small molecule direct activator of the KCC2 transporter, which is in Phase 1 clinical trials for treating epilepsies. It also develops OV815, that focuses on the mutations associated with KIF1A-associated neurological disorder (KAND); OV888 (GV101), a highly selective rock2 inhibitor which is in Phase 1 double-blind multiple-ascending dose trial; OV825, has advanced to potential candidate lead identification for the rare neurodevelopmental condition HNRNPH2 (Bain Syndrome); and OV882, a short hairpin RNA gene therapy for the treatment of Angelman syndrome. The company has license and collaboration agreements with Healx, AstraZeneca AB, H. Lundbeck A/S, Northwestern University, and Graviton, as well as Marinus Pharmaceuticals, Inc. The company was incorporated in 2014 and is headquartered in New York, New York.
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