Contrasting Kaleido Biosciences (NASDAQ:KLDO) and Adial Pharmaceuticals (NASDAQ:ADIL)

Adial Pharmaceuticals (NASDAQ:ADIL) and Kaleido Biosciences (NASDAQ:KLDO) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Adial Pharmaceuticals and Kaleido Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adial Pharmaceuticals	N/A	-197.73%	-153.71%
Kaleido Biosciences	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Adial Pharmaceuticals and Kaleido Biosciences, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adial Pharmaceuticals	1	1	1	0	2.00
Kaleido Biosciences	0	0	0	0	0.00

Adial Pharmaceuticals presently has a consensus price target of $22.75, suggesting a potential upside of 742.59%. Given Adial Pharmaceuticals’ stronger consensus rating and higher probable upside, equities analysts plainly believe Adial Pharmaceuticals is more favorable than Kaleido Biosciences.

Earnings and Valuation

This table compares Adial Pharmaceuticals and Kaleido Biosciences”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adial Pharmaceuticals	N/A	N/A	-$13.20 million	($18.75)	-0.14
Kaleido Biosciences	$1.10 million	0.00	-$95.48 million	($2.24)	0.00

Adial Pharmaceuticals has higher earnings, but lower revenue than Kaleido Biosciences. Adial Pharmaceuticals is trading at a lower price-to-earnings ratio than Kaleido Biosciences, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Adial Pharmaceuticals has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Kaleido Biosciences has a beta of -0.06, indicating that its stock price is 106% less volatile than the S&P 500.

Institutional and Insider Ownership

16.4% of Adial Pharmaceuticals shares are owned by institutional investors. Comparatively, 81.6% of Kaleido Biosciences shares are owned by institutional investors. 1.9% of Adial Pharmaceuticals shares are owned by insiders. Comparatively, 9.0% of Kaleido Biosciences shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Kaleido Biosciences beats Adial Pharmaceuticals on 7 of the 12 factors compared between the two stocks.

About Adial Pharmaceuticals

Adial Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development of therapeutics for the treatment or prevention of addiction and related disorders. Its lead product is AD04, a serotonin-3 antagonist, which is in Phase III clinical trial for the treatment of alcohol use disorder. The company also focuses on developing drug candidates for non-opioid pain reduction and other diseases and disorders. Adial Pharmaceuticals, Inc. was founded in 2010 and is based in Charlottesville, Virginia.

About Kaleido Biosciences

Kaleido Biosciences, Inc., a clinical-stage healthcare company, develops microbiome metabolic therapies. The company develops KB195 for the treatment of patients with urea cycle disorder; KB295 to treat ulcerative colitis; KB174 for the treatment of hepatic encephalopathy; and KB109 to treat COVID-19 disease. It also develops programs for the treatment of multi drug resistant infection, chronic kidney disease, atherosclerotic cardiovascular disease, cardio-metabolic syndrome, immuno-oncology, and inflammatory bowel diseases. The company has collaboration agreements with Institute Gustave Roussy, Washington University, and Janssen. Kaleido Biosciences, Inc. was incorporated in 2015 and is headquartered in Lexington, Massachusetts.