Alimera Sciences (NASDAQ: ALIM) and Fortress Biotech (NASDAQ:FBIO) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.
Insider and Institutional Ownership
41.9% of Alimera Sciences shares are held by institutional investors. Comparatively, 12.1% of Fortress Biotech shares are held by institutional investors. 14.7% of Alimera Sciences shares are held by insiders. Comparatively, 33.3% of Fortress Biotech shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Alimera Sciences has a beta of 2.17, meaning that its share price is 117% more volatile than the S&P 500. Comparatively, Fortress Biotech has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.
Earnings & Valuation
This table compares Alimera Sciences and Fortress Biotech’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alimera Sciences||$34.33 million||2.60||-$33.17 million||($0.31)||-4.16|
|Fortress Biotech||$16.48 million||10.61||-$55.09 million||($1.83)||-1.89|
Alimera Sciences has higher revenue and earnings than Fortress Biotech. Alimera Sciences is trading at a lower price-to-earnings ratio than Fortress Biotech, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for Alimera Sciences and Fortress Biotech, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Alimera Sciences presently has a consensus target price of $4.00, indicating a potential upside of 210.08%. Fortress Biotech has a consensus target price of $11.00, indicating a potential upside of 218.84%. Given Fortress Biotech’s higher possible upside, analysts clearly believe Fortress Biotech is more favorable than Alimera Sciences.
This table compares Alimera Sciences and Fortress Biotech’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Alimera Sciences beats Fortress Biotech on 8 of the 12 factors compared between the two stocks.
Alimera Sciences Company Profile
Alimera Sciences, Inc. (Alimera) is a pharmaceutical company. The Company is engaged in the research, development and commercialization of prescription ophthalmic pharmaceuticals. The Company operates through two segments: U.S. and International. The Company focuses on diseases affecting the back of the eye or retina. The Company’s product is ILUVIEN, which is developed to treat diabetic macular edema (DME). DME is a disease of the retina that affects individuals with diabetes and can lead to severe vision loss and blindness. In the United States, ILUVIEN is indicated for the treatment of DME in patients who have been treated with a course of corticosteroids and did not have a rise in intraocular pressure (IOP). In the European Economic Area (EEA) countries, ILUVIEN is indicated for the treatment of vision impairment associated with DME considered insufficiently responsive to available therapies.
Fortress Biotech Company Profile
Fortress Biotech, Inc., formerly Coronado Biosciences, Inc., is a biopharmaceutical company. The Company is involved in the development of immunotherapy agents for the treatment of autoimmune diseases and cancer. Its sole product candidate is CNDO-109. The Company is also focused on acquiring, developing and commercializing pharmaceutical and biotechnology products. The Company’s product, CNDO-109, is a lysate (disrupted Closteroviridae (CTV)-1 cells, cell membrane fragments, cell proteins and other cellular components) that activates donor Natural Killer (NK) cells. CTV-1 is a leukemic cell line re-classified as a T-cell acute lymphocytic leukemia (ALL). The Company holds the license to develop and commercialize CNDO-109 to activate NK cells for the treatment of cancer-related and other conditions, and a non-exclusive license to certain clinical data solely for use in the Investigational new drug (IND) for CNDO-109. The Company is conducting the Phase I clinical studies of CNDO-109.
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