Kindred Biosciences (NASDAQ: KIN) and Aduro BioTech (NASDAQ:ADRO) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Volatility and Risk
Kindred Biosciences has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500. Comparatively, Aduro BioTech has a beta of 3.01, suggesting that its stock price is 201% more volatile than the S&P 500.
This table compares Kindred Biosciences and Aduro BioTech’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and target prices for Kindred Biosciences and Aduro BioTech, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kindred Biosciences currently has a consensus target price of $9.90, indicating a potential upside of 19.28%. Aduro BioTech has a consensus target price of $18.50, indicating a potential upside of 198.39%. Given Aduro BioTech’s stronger consensus rating and higher possible upside, analysts clearly believe Aduro BioTech is more favorable than Kindred Biosciences.
Valuation and Earnings
This table compares Kindred Biosciences and Aduro BioTech’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kindred Biosciences||N/A||N/A||-$22.49 million||($1.17)||-7.09|
|Aduro BioTech||$50.68 million||9.46||-$91.14 million||($1.36)||-4.56|
Kindred Biosciences has higher earnings, but lower revenue than Aduro BioTech. Kindred Biosciences is trading at a lower price-to-earnings ratio than Aduro BioTech, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
66.7% of Kindred Biosciences shares are held by institutional investors. Comparatively, 45.1% of Aduro BioTech shares are held by institutional investors. 19.1% of Kindred Biosciences shares are held by insiders. Comparatively, 6.6% of Aduro BioTech shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Aduro BioTech beats Kindred Biosciences on 7 of the 13 factors compared between the two stocks.
Kindred Biosciences Company Profile
Kindred Biosciences, Inc. is a development-stage biopharmaceutical company. The Company is focused on developing therapies for pets. The Company’s product pipeline consists of small molecules and biologics for a range of indications in dogs, cats and horses. The Company is developing product candidates for over 20 indications and focused on small molecule products and canine and feline biologics products. The Company is developing antibodies that targets canine Interleukin 17A (IL-17a), Interleukin 4A (IL-4Ra), Interleukin 3 (IL-3), CD-20, Immunoglobulin E (IgE), tumor necrosis factors (TNF) and other validated targets. The Company’s lead product candidates are Zimeta, which is indicated for the treatment of fever in horses, and KIND-010 for management of weight loss in cats. The Company’s other product candidates include KIND-010, KIND-014, KIND-015, KIND-510, KIND-502, KIND-0888, KIND-509, and several antibodies that target cytokines involved in atopic dermatitis.
Aduro BioTech Company Profile
Aduro Biotech, Inc. is an immunotherapy company, which focuses on the discovery, development and commercialization of therapies that manage the treatment of various diseases, including cancer. The Company’s product candidates from its Live, Attenuated, Double-Deleted (LADD) Listeria monocytogenes, Stimulator of Interferon Genes Pathway Activator, and B-select monoclonal antibody platforms are designed to stimulate and/or regulate innate and adaptive immune responses, either as single agents or in combination with conventional therapies, as well as other immunotherapies. Its LADD technology platform is being developed as a treatment for multiple indications, including mesothelioma, ovarian, gastric, lung and prostate cancers. Its LADD product candidate is CRS-207, which is being developed as a treatment for multiple indications, including mesothelioma, ovarian and gastric cancers. ADU-214 and ADU-741 are product candidates in development for lung and prostate cancers, respectively.
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