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

Volatility & Risk

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

Insider & Institutional Ownership

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

Analyst Ratings

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

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

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

Profitability

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

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

Valuation and Earnings

This table compares Kindred Biosciences and Rigel Pharmaceuticals’ top-line 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) -6.84
Rigel Pharmaceuticals $20.38 million 27.46 -$69.21 million ($0.59) -6.47

Kindred Biosciences has higher earnings, but lower revenue 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.

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.

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.

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