Tokai Pharmaceuticals (NASDAQ: NVUS) and KalVista Pharmaceuticals (NASDAQ:KALV) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Risk and Volatility

Tokai Pharmaceuticals has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, KalVista Pharmaceuticals has a beta of 3.05, meaning that its share price is 205% more volatile than the S&P 500.

Earnings and Valuation

This table compares Tokai Pharmaceuticals and KalVista Pharmaceuticals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Tokai Pharmaceuticals N/A N/A -$37.95 million N/A N/A
KalVista Pharmaceuticals $1.50 million 82.73 -$18.60 million N/A N/A

KalVista Pharmaceuticals has higher revenue and earnings than Tokai Pharmaceuticals.

Profitability

This table compares Tokai Pharmaceuticals and KalVista Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tokai Pharmaceuticals N/A -156.99% -140.33%
KalVista Pharmaceuticals -4,191.47% -60.42% -55.11%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Tokai Pharmaceuticals and KalVista Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tokai Pharmaceuticals 0 0 0 0 N/A
KalVista Pharmaceuticals 0 0 1 0 3.00

KalVista Pharmaceuticals has a consensus target price of $27.00, indicating a potential upside of 111.27%. Given KalVista Pharmaceuticals’ higher possible upside, analysts clearly believe KalVista Pharmaceuticals is more favorable than Tokai Pharmaceuticals.

Institutional & Insider Ownership

39.8% of Tokai Pharmaceuticals shares are owned by institutional investors. Comparatively, 75.6% of KalVista Pharmaceuticals shares are owned by institutional investors. 5.2% of Tokai Pharmaceuticals shares are owned by insiders. Comparatively, 49.1% of KalVista Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

KalVista Pharmaceuticals beats Tokai Pharmaceuticals on 9 of the 10 factors compared between the two stocks.

About Tokai Pharmaceuticals

Novus Therapeutics, Inc., formerly Tokai Pharmaceuticals, Inc., is a pharmaceutical company. The Company is focused on the acquisition, development, and commercialization of ear, nose, and throat products. It has two platforms: OP-01 Foam Platform and OP-02 Surfactant Program. OP-01 is developed with the intent to be used as a delivery vehicle for drugs treating ears, as well as the nasal and sinus cavities. OP-01 is currently being developed as an improved treatment option for acute otitis externa. OP-02 is a daily nasal spray that is designed to improve and maintain a healthy middle ear. OP-02 is being developed as a potential treatment option for patients with otitis media and Eustachian tube dysfunction. OP-02 is a combination drug product, which comprises two components: surfactant dipalmitoylphosphatidylcholine and a spreading agent cholesteryl palmitate. The product is sprayed through the nostrils toward the opening of the Eustachian tube at the back of the nasal cavity.

About KalVista Pharmaceuticals

KalVista Pharmaceuticals, Inc., formerly Carbylan Therapeutics, Inc., is a clinical-stage pharmaceutical company. The Company is focused on the discovery, development, and commercialization of small molecule protease inhibitors for a range of diseases. The Company has developed a portfolio of small molecule plasma kallikrein inhibitors targeting hereditary angioedema (HAE) and diabetic macular edema (DME). The Company is developing a plasma kallikrein inhibitor, which is administered directly into the eye. The Company is engaged in advancing several product candidates developed from its portfolio into early clinical trials. The Company is progressing additional oral candidates towards regulatory preclinical studies. The Company’s HAE product candidate, KVD818, is an inhibitor of plasma kallikrein. The Company has initiated clinical testing of KVD818 in a Phase I clinical trial. It has completed an open-label single ascending dose Phase I trial in DME patients with KVD001.

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