Adagene (NASDAQ:ADAG – Get Free Report) and KALA BIO (NASDAQ:KALA – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.
Insider & Institutional Ownership
9.5% of Adagene shares are owned by institutional investors. Comparatively, 24.6% of KALA BIO shares are owned by institutional investors. 21.2% of Adagene shares are owned by insiders. Comparatively, 2.2% of KALA BIO shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Adagene and KALA BIO”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Adagene | $100,000.00 | 1,479.88 | -$33.42 million | N/A | N/A |
| KALA BIO | N/A | N/A | -$38.51 million | ($5.93) | -0.06 |
Adagene has higher revenue and earnings than KALA BIO.
Analyst Recommendations
This is a summary of current recommendations and price targets for Adagene and KALA BIO, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Adagene | 1 | 0 | 2 | 2 | 3.00 |
| KALA BIO | 1 | 4 | 1 | 0 | 2.00 |
Adagene currently has a consensus price target of $7.67, indicating a potential upside of 144.16%. KALA BIO has a consensus price target of $20.38, indicating a potential upside of 5,261.84%. Given KALA BIO’s higher possible upside, analysts clearly believe KALA BIO is more favorable than Adagene.
Profitability
This table compares Adagene and KALA BIO’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Adagene | N/A | N/A | N/A |
| KALA BIO | N/A | -2,323.94% | -86.99% |
Risk & Volatility
Adagene has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, KALA BIO has a beta of -2.43, suggesting that its share price is 343% less volatile than the S&P 500.
Summary
Adagene beats KALA BIO on 9 of the 11 factors compared between the two stocks.
About Adagene
Adagene Inc., a clinical stage biotechnology company, engages in the research, development, and production of monoclonal antibody drugs for cancers. The company's product candidates include ADG106, a human ligand-blocking agonistic anti- CD137 IgG4 monoclonal antibodies (mAbs) that is in Phase 1b/2 clinical trials for the treatment advanced solid tumors and non-Hodgkin's lymphoma; ADG126, a masked fully-human anti-CTLA-4 mAb that is in Phase 1 clinical trial for the treatment advanced/metastatic solid tumors; and ADG116, a human ligand-blocking anti-CTLA-4 mAb, which is in Phase 1b/2 clinical development for the treatment of advanced/metastatic solid tumors. It also offers ADG104, an anti-PD-L1 mAb that is in Phase 2 clinical development; ADG125, a novel anti-CSF-1R mAb, which is in Phase I clinical trial; ADG206, a masked, Fc engineered anti-CD137 agonistic POWERbody; ADG153, a masked anti-CD47 IgG1 SAFEbody, which is in preclinical for the treatment hematologic and solid tumors; ADG138, novel HER2xCD3 POWERbody, which is in preclinical for the treatment HER2-expressing solid tumors; and ADG152, a v POWERbody, which is in preclinical stage for the treatment off-tumor toxicities, as well as develops anti-CD28 bispecific POWERbody TCEs. The company was incorporated in 2011 and is headquartered in Suzhou, China.
About KALA BIO
KALA BIO, Inc., a clinical-stage biopharmaceutical company, engages in the research, development, and commercialization of innovative therapies for rare and severe eye diseases in the United States. The company's product candidates include KPI-012, which is in Phase 2b clinical trial for the treatment of persistent corneal epithelial defects. Its preclinical development product, including KPI-014 for the treatment of rare inherited retinal diseases. The company was formerly known as Kala Pharmaceuticals, Inc. and changed its name to KALA BIO, Inc. in August 2023. KALA BIO, Inc. was incorporated in 2009 and is headquartered in Arlington, Massachusetts.
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