Head to Head Review: Fortress Biotech (FBIO) and Transition Therapeutics (TTHI)

Fortress Biotech (NASDAQ: FBIO) and Transition Therapeutics (NASDAQ:TTHI) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Insider and Institutional Ownership

12.1% of Fortress Biotech shares are held by institutional investors. 33.3% of Fortress Biotech 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.

Earnings and Valuation

This table compares Fortress Biotech and Transition Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fortress Biotech $16.48 million 12.17 -$55.09 million ($1.82) -2.18
Transition Therapeutics N/A N/A N/A ($1.07) N/A

Transition Therapeutics has lower revenue, but higher earnings than Fortress Biotech. Fortress Biotech is trading at a lower price-to-earnings ratio than Transition Therapeutics, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for Fortress Biotech and Transition Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fortress Biotech 0 0 4 0 3.00
Transition Therapeutics 0 0 0 0 N/A

Fortress Biotech presently has a consensus price target of $11.00, indicating a potential upside of 177.78%.

Profitability

This table compares Fortress Biotech and Transition Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fortress Biotech -65.80% -61.43% -33.68%
Transition Therapeutics N/A -58.00% -47.29%

Summary

Fortress Biotech beats Transition Therapeutics on 5 of the 9 factors compared between the two stocks.

About Fortress Biotech

Fortress Biotech, Inc., formerly Coronado Biosciences, Inc., is a biopharmaceutical company. The Company is involved in the development of immunotherapy agents for the treatment of autoimmune diseases and cancer. Its sole product candidate is CNDO-109. The Company is also focused on acquiring, developing and commercializing pharmaceutical and biotechnology products. The Company’s product, CNDO-109, is a lysate (disrupted Closteroviridae (CTV)-1 cells, cell membrane fragments, cell proteins and other cellular components) that activates donor Natural Killer (NK) cells. CTV-1 is a leukemic cell line re-classified as a T-cell acute lymphocytic leukemia (ALL). The Company holds the license to develop and commercialize CNDO-109 to activate NK cells for the treatment of cancer-related and other conditions, and a non-exclusive license to certain clinical data solely for use in the Investigational new drug (IND) for CNDO-109. The Company is conducting the Phase I clinical studies of CNDO-109.

About Transition Therapeutics

Transition Therapeutics Inc. is a product-focused biopharmaceutical company. The Company’s principal business activity is the researching and developing of therapeutic agents. The Company is developing therapeutics for central nervous system (CNS) and metabolic disease indications. The Company’s technologies are focused on the treatment of agitation and aggression in Alzheimer’s disease and diabetes. The Company’s subsidiary, Transition Therapeutics Ireland Limited (Transition Ireland), is developing two drug candidates: neuropsychiatric candidate ELND005 and androgen deficiency candidate TT701. The Company’s subsidiary, Waratah Pharmaceuticals Inc. (Waratah), is developing diabetes drug candidate TT401. The Company’s other two entities provide development services in support of the clinical and non-clinical activities of Transition Ireland and Waratah.

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