Kala Pharmaceuticals (NASDAQ: KALA) and Summit Therapeutics (NASDAQ:SMMT) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.
Insider & Institutional Ownership
63.0% of Kala Pharmaceuticals shares are held by institutional investors. Comparatively, 30.0% of Summit Therapeutics shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a summary of recent ratings for Kala Pharmaceuticals and Summit Therapeutics, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kala Pharmaceuticals presently has a consensus price target of $35.80, indicating a potential upside of 143.37%. Summit Therapeutics has a consensus price target of $24.50, indicating a potential upside of 97.42%. Given Kala Pharmaceuticals’ higher probable upside, analysts plainly believe Kala Pharmaceuticals is more favorable than Summit Therapeutics.
This table compares Kala Pharmaceuticals and Summit Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Kala Pharmaceuticals and Summit Therapeutics’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kala Pharmaceuticals||$40,000.00||9,017.23||-$33.16 million||N/A||N/A|
|Summit Therapeutics||$2.90 million||59.23||-$28.59 million||($0.10)||-124.10|
Summit Therapeutics has higher revenue and earnings than Kala Pharmaceuticals.
Kala Pharmaceuticals beats Summit Therapeutics on 7 of the 9 factors compared between the two stocks.
About Kala Pharmaceuticals
Kala Pharmaceuticals, Inc. is a biopharmaceutical company focused on the development and commercialization of therapeutics through its nanoparticle-based Mucus Penetrating Particles, or MPP, technology. The Company’s initial focus is on the treatment of eye diseases. The Company’s product candidate includes KPI-121 1%, KPI-121 0.25% and MPP rTKI Program. The Company has completed two Phase III clinical trials for KPI-121 1% . The KPI-121 0.25% is the Company’s product candidate for temporary relief of signs and symptoms of dry eye disease. KPI-121 1% is the twice-a-day product candidate for treatment of post-operative inflammation and pain following ocular surgery. MPP rTKI Program is therapies for retinal diseases that should be injected directly into the patient’s eye, often at monthly intervals.
About Summit Therapeutics
Summit Therapeutics plc is a biopharmaceutical company, which is engaged in drug development. The Company is focused on the discovery, development and commercialization of medicines for indications for which there are no existing or only inadequate therapies. It is conducting clinical programs focused on the genetic disease Duchenne muscular dystrophy (DMD) and the infectious disease Clostridium difficile infection (CDI). Its lead DMD product candidate is ezutromid, which is an orally administered small molecule. Its lead CDI product candidate is ridinilazole, which is an orally administered small molecule antibiotic. Its Ridinilazole is in Phase II clinical trials. It has conducted over three Phase I clinical trials of ezutromid. Its DMD program is based on utrophin modulation. It has received an orphan drug designation to ezutromid for the treatment of DMD. It is also developing an earlier-stage pipeline of second and future generation utrophin modulators for the treatment of DMD.
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