Insmed (NASDAQ:INSM) versus Fate Therapeutics (NASDAQ:FATE) Head-To-Head Review

Insmed (NASDAQ:INSM) and Fate Therapeutics (NASDAQ:FATE) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Insmed and Fate Therapeutics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Insmed	$606.42 million	45.48	-$1.28 billion	($4.11)	-30.73
Fate Therapeutics	$6.65 million	44.68	-$136.32 million	($1.05)	-2.36

Fate Therapeutics has lower revenue, but higher earnings than Insmed. Insmed is trading at a lower price-to-earnings ratio than Fate Therapeutics, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

97.5% of Fate Therapeutics shares are held by institutional investors. 2.1% of Insmed shares are held by company insiders. Comparatively, 4.7% of Fate Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Insmed has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Fate Therapeutics has a beta of 2.54, suggesting that its stock price is 154% more volatile than the S&P 500.

Profitability

This table compares Insmed and Fate Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Insmed	-76.94%	-123.94%	-44.30%
Fate Therapeutics	-1,941.09%	-65.08%	-41.73%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Insmed and Fate Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Insmed	1	0	22	2	3.00
Fate Therapeutics	1	3	4	0	2.38

Insmed currently has a consensus target price of $205.52, indicating a potential upside of 62.74%. Fate Therapeutics has a consensus target price of $5.90, indicating a potential upside of 137.90%. Given Fate Therapeutics’ higher probable upside, analysts clearly believe Fate Therapeutics is more favorable than Insmed.

Summary

Fate Therapeutics beats Insmed on 9 of the 15 factors compared between the two stocks.

About Insmed

Insmed Incorporated is a global biopharmaceutical company on a mission to transform the lives of patients with serious and rare diseases. Insmed’s first commercial product is ARIKAYCE® (amikacin liposome inhalation suspension), which is approved in the United States for the treatment of Mycobacterium avium complex (MAC) lung disease as part of a combination antibacterial drug regimen for adult patients with limited or no alternative treatment options. MAC lung disease is a rare and often chronic infection that can cause irreversible lung damage and can be fatal. Insmed’s earlier-stage clinical pipeline includes INS1007, a novel oral reversible inhibitor of dipeptidyl peptidase 1 with therapeutic potential in non-cystic fibrosis bronchiectasis and other inflammatory diseases, and INS1009, an inhaled formulation of a treprostinil prodrug that may offer a differentiated product profile for rare pulmonary disorders, including pulmonary arterial hypertension.

About Fate Therapeutics

Fate Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops programmed cellular immunotherapies for cancer and immune disorders worldwide. The company's chimeric antigen receptor (CAR)-targeted NK and T-cell product candidates include FT576 to treat multiple myeloma, and FT522, to treat lymphoma and autoimmune disorders. Its CAR T-cell programs include FT819 to treat hematologic malignancies and solid tumors, and FT825 to treat solid tumors. The company has a collaboration and option agreement with Ono Pharmaceutical Co. Ltd. for the development and commercialization of off-the-shelf, iPSC-derived CAR T-cell product candidates for the treatment of cancer. Fate Therapeutics, Inc. was incorporated in 2007 and is headquartered in San Diego, California.