Rigel Pharmaceuticals (RIGL) vs. Kindred Biosciences (KIN) Critical Analysis

Rigel Pharmaceuticals (NASDAQ: RIGL) and Kindred Biosciences (NASDAQ:KIN) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.

Risk and Volatility

Rigel Pharmaceuticals has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Kindred Biosciences has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500.

Insider and Institutional Ownership

74.2% of Rigel Pharmaceuticals shares are owned by institutional investors. Comparatively, 66.7% of Kindred Biosciences shares are owned by institutional investors. 5.2% of Rigel Pharmaceuticals shares are owned by company insiders. Comparatively, 19.1% of Kindred Biosciences shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Rigel Pharmaceuticals and Kindred Biosciences, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rigel Pharmaceuticals 0 0 5 0 3.00
Kindred Biosciences 0 2 4 0 2.67

Rigel Pharmaceuticals presently has a consensus target price of $5.80, suggesting a potential upside of 51.83%. Kindred Biosciences has a consensus target price of $9.90, suggesting a potential upside of 23.75%. Given Rigel Pharmaceuticals’ stronger consensus rating and higher possible upside, equities analysts clearly believe Rigel Pharmaceuticals is more favorable than Kindred Biosciences.

Profitability

This table compares Rigel Pharmaceuticals and Kindred Biosciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rigel Pharmaceuticals N/A -102.26% -80.57%
Kindred Biosciences N/A -36.18% -34.66%

Valuation and Earnings

This table compares Rigel Pharmaceuticals and Kindred Biosciences’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rigel Pharmaceuticals $20.38 million 27.46 -$69.21 million ($0.59) -6.47
Kindred Biosciences N/A N/A -$22.49 million ($1.17) -6.84

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

Summary

Rigel Pharmaceuticals beats Kindred Biosciences on 7 of the 11 factors compared between the two stocks.

Rigel Pharmaceuticals Company Profile

Rigel Pharmaceuticals, Inc. is a clinical-stage biotechnology company. The Company is engaged in the discovering, developing and providing novel small molecule drugs that improve the lives of patients with immune and hematological disorders, cancer and rare diseases. The Company’s pioneering research focuses on signaling pathways that are critical to disease mechanisms. The Company’s clinical programs include clinical trials of fostamatinib, an oral spleen tyrosine kinase (SYK) inhibitor, in a number of indications. The Company has submitted a new drug application (NDA) to the United States food and drug administration (FDA) for fostamatinib in patients with chronic or persistent immune thrombocytopenia (ITP). In addition, the Company has product candidates in development with partners BerGenBio AS, Daiichi Sankyo and Aclaris Therapeutics. The Company is engaged in conducting research in the disease areas of inflammation/immunology and muscle wasting/muscle endurance.

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.

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