Head-To-Head Comparison: Aerovate Therapeutics (NASDAQ:AVTE) & Kronos Bio (NASDAQ:KRON)

Kronos Bio (NASDAQ:KRON) and Aerovate Therapeutics (NASDAQ:AVTE) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.

Valuation and Earnings

This table compares Kronos Bio and Aerovate Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kronos Bio	$9.86 million	6.03	-$112.67 million	($1.43)	-0.69
Aerovate Therapeutics	N/A	N/A	-$75.52 million	($2.99)	-0.88

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

Profitability

This table compares Kronos Bio and Aerovate Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kronos Bio	-867.66%	-64.55%	-48.18%
Aerovate Therapeutics	N/A	-90.19%	-77.47%

Analyst Ratings

This is a summary of current recommendations and price targets for Kronos Bio and Aerovate Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kronos Bio	0	2	1	0	2.33
Aerovate Therapeutics	0	6	0	0	2.00

Kronos Bio presently has a consensus price target of $1.63, suggesting a potential upside of 64.97%. Aerovate Therapeutics has a consensus price target of $2.25, suggesting a potential downside of 14.77%. Given Kronos Bio’s stronger consensus rating and higher probable upside, analysts clearly believe Kronos Bio is more favorable than Aerovate Therapeutics.

Insider and Institutional Ownership

64.1% of Kronos Bio shares are owned by institutional investors. 24.4% of Kronos Bio shares are owned by insiders. Comparatively, 24.9% of Aerovate Therapeutics shares are owned 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.

Volatility & Risk

Kronos Bio has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500. Comparatively, Aerovate Therapeutics has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Summary

Kronos Bio beats Aerovate Therapeutics on 10 of the 13 factors compared between the two stocks.

About Kronos Bio

Kronos Bio, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery and development of therapeutics for various cancer and other serious diseases in the United States. Its lead product candidates are KB-0742, an oral cyclin dependent kinase 9 inhibitor for the treatment of MYC-amplified solid tumors, which is in phase 2 clinical trial; and KB-9558, a core oncogenic transcription factor that drives multiple myeloma. The company was incorporated in 2017 and is headquartered in San Mateo, California.

About Aerovate Therapeutics

Aerovate Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops drugs that enhance the lives of patients with rare cardiopulmonary diseases in the United States. It focuses on advancing AV-101, a dry powder inhaled formulation of imatinib for the treatment of pulmonary arterial hypertension, which is in Phase 2b/Phase 3 trial. The company was incorporated in 2018 and is headquartered in Waltham, Massachusetts.