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

Profitability

This table compares Kalvista Pharmaceuticals and Mustang Bio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kalvista Pharmaceuticals -144.64% -22.29% -18.36%
Mustang Bio N/A -86.70% -66.79%

Insider & Institutional Ownership

82.9% of Kalvista Pharmaceuticals shares are owned by institutional investors. Comparatively, 26.6% of Mustang Bio shares are owned by institutional investors. 21.6% of Kalvista Pharmaceuticals shares are owned by insiders. Comparatively, 1.7% of Mustang Bio shares are owned 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Kalvista Pharmaceuticals and Mustang Bio, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kalvista Pharmaceuticals 0 0 5 0 3.00
Mustang Bio 0 0 3 0 3.00

Kalvista Pharmaceuticals presently has a consensus target price of $31.80, indicating a potential upside of 177.24%. Mustang Bio has a consensus target price of $10.67, indicating a potential upside of 293.60%. Given Mustang Bio’s higher probable upside, analysts clearly believe Mustang Bio is more favorable than Kalvista Pharmaceuticals.

Valuation and Earnings

This table compares Kalvista Pharmaceuticals and Mustang Bio’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kalvista Pharmaceuticals $16.13 million 12.67 -$20.82 million ($1.38) -8.31
Mustang Bio N/A N/A -$30.66 million ($1.14) -2.38

Kalvista Pharmaceuticals has higher revenue and earnings than Mustang Bio. Kalvista Pharmaceuticals is trading at a lower price-to-earnings ratio than Mustang Bio, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Kalvista Pharmaceuticals has a beta of 2.04, suggesting that its share price is 104% more volatile than the S&P 500. Comparatively, Mustang Bio has a beta of 2.05, suggesting that its share price is 105% more volatile than the S&P 500.

Summary

Kalvista Pharmaceuticals beats Mustang Bio on 7 of the 12 factors compared between the two stocks.

Kalvista Pharmaceuticals Company Profile

KalVista Pharmaceuticals, Inc., a clinical stage pharmaceutical company, discovers, develops, and commercializes small molecule protease inhibitors. The company's product portfolio comprises small molecule plasma kallikrein inhibitors targeting hereditary angioedema (HAE) and diabetic macular edema (DME); and oral plasma kallikrein inhibitors. Its products include KVD001, an intravitreally administered plasma kallikrein inhibitor that is in Phase II clinical trials for the treatment of DME; and KVD900, a potent inhibitor of plasma kallikrein, which is in Phase I clinical trial for treating HAE. The company is headquartered in Cambridge, Massachusetts.

Mustang Bio Company Profile

Mustang Bio, Inc., a clinical-stage biopharmaceutical company, focuses on translating medical breakthroughs in cell and gene therapies into potential cures for hematologic cancers, solid tumors, and rare genetic diseases. Its pipeline focuses on gene therapy programs for rare genetic disorders, chimeric antigen receptor (CAR) engineered T cell (CAR T) therapies for hematologic malignancies, and CAR T therapies for solid tumors. The company develop MB-107, a gene therapy program, potential curative treatment for X-linked severe combined immunodeficiency, a rare genetic immune system condition in which affected patients do not live beyond infancy without treatment. Its ex vivo lentiviral gene therapy is in two Phase I/II clinical trials. The company also develops CD123, a heterodimeric interleukin-3-receptor for acute myeloid leukemia; CD20 for immunotherapy of B-cell lymphomas; CS1, an NK cell receptor regulating immune functions; IL13Ra2 CAR T cell program for glioblastoma; HER2 CAR T for glioblastoma multiforme (GBM) and metastatic breast cancer to brain; and PSCA CAR T for prostate and pancreatic cancers. It has a license agreement with Harvard University for the treatment of cancer; Nationwide Children's Hospital for the development of an oncolytic virus for treating GBM; and Beth Israel Deaconess Medical Center to perform research relating to gene editing. The company was incorporated in 2015 and is headquartered in New York, New York. Mustang Bio, Inc. is a subsidiary of Fortress Biotech, Inc.

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