Reviewing LianBio (NASDAQ:LIAN) & Kaleido Biosciences (NASDAQ:KLDO)

LianBio (NASDAQ:LIAN) and Kaleido Biosciences (NASDAQ:KLDO) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Institutional & Insider Ownership

74.8% of LianBio shares are held by institutional investors. Comparatively, 81.6% of Kaleido Biosciences shares are held by institutional investors. 7.6% of LianBio shares are held by insiders. Comparatively, 9.0% of Kaleido Biosciences shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for LianBio and Kaleido Biosciences, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LianBio	1	1	1	0	2.00
Kaleido Biosciences	0	0	0	0	N/A

LianBio currently has a consensus target price of $5.33, indicating a potential upside of 1,620.43%.

Volatility & Risk

LianBio has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500. Comparatively, Kaleido Biosciences has a beta of -0.06, suggesting that its share price is 106% less volatile than the S&P 500.

Profitability

This table compares LianBio and Kaleido Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LianBio	N/A	-33.17%	-30.19%
Kaleido Biosciences	N/A	N/A	N/A

Earnings & Valuation

This table compares LianBio and Kaleido Biosciences’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LianBio	N/A	N/A	-$110.29 million	($0.81)	-0.38
Kaleido Biosciences	$1.10 million	0.00	-$95.48 million	($2.24)	N/A

Kaleido Biosciences has higher revenue and earnings than LianBio. LianBio is trading at a lower price-to-earnings ratio than Kaleido Biosciences, indicating that it is currently the more affordable of the two stocks.

Summary

Kaleido Biosciences beats LianBio on 7 of the 10 factors compared between the two stocks.

About LianBio

LianBio, a biopharmaceutical company, engages in developing and commercializing medicines for cardiovascular, oncology, opthalmology, and inflammatory diseases in China and other Asian countries. The company develops mavacamten for the treatment of obstructive and non-obstructive hypertrophic cardiomyopathy, and heart failure with preserved ejection fraction; TP-03 for the treatment of Demodex blepharitis and meibomian gland disease; NBTXR3 for the treatment of head and neck squamous cell carcinoma, and solid tumor; Infigratinib for the treatment of second-line and first-line cholangiocarcinoma, and gastric cancers; BBP-398 for solid tumors; Omilancor and NX-13 for ulcerative colitis and Crohn's disease; LYR-210 for chronic rhinosinusitis; and Sisunatovir for respiratory syncytical virus. It has a partnership with Tarsus Pharmaceuticals, Inc. to develop and commercialize TP-03 for the treatment of Demodex blepharitis; and Nanobiotix S.A. to develop and commercialize NBTXR3, a radioenhancer designed to be injected directly into a malignant tumor prior to standard radiotherapy. The company was incorporated in 2019 and is headquartered in Princeton, New Jersey.

About Kaleido Biosciences

Kaleido Biosciences, Inc., a clinical-stage healthcare company, develops microbiome metabolic therapies. The company develops KB195 for the treatment of patients with urea cycle disorder; KB295 to treat ulcerative colitis; KB174 for the treatment of hepatic encephalopathy; and KB109 to treat COVID-19 disease. It also develops programs for the treatment of multi drug resistant infection, chronic kidney disease, atherosclerotic cardiovascular disease, cardio-metabolic syndrome, immuno-oncology, and inflammatory bowel diseases. The company has collaboration agreements with Institute Gustave Roussy, Washington University, and Janssen. Kaleido Biosciences, Inc. was incorporated in 2015 and is headquartered in Lexington, Massachusetts.