VIVUS (NASDAQ: VVUS) and Fortress Biotech (NASDAQ:FBIO) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
Institutional and Insider Ownership
35.7% of VIVUS shares are held by institutional investors. Comparatively, 11.8% of Fortress Biotech shares are held by institutional investors. 4.4% of VIVUS shares are held by company insiders. Comparatively, 33.3% of Fortress Biotech shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
VIVUS has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Fortress Biotech has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for VIVUS and Fortress Biotech, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Fortress Biotech has a consensus target price of $11.00, suggesting a potential upside of 148.87%. Given Fortress Biotech’s higher possible upside, analysts plainly believe Fortress Biotech is more favorable than VIVUS.
Earnings & Valuation
This table compares VIVUS and Fortress Biotech’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|VIVUS||$133.40 million||0.66||$67.14 million||$0.31||2.66|
|Fortress Biotech||$108.97 million||2.05||-$71.48 million||($1.48)||-2.99|
VIVUS has higher revenue and earnings than Fortress Biotech. Fortress Biotech is trading at a lower price-to-earnings ratio than VIVUS, indicating that it is currently the more affordable of the two stocks.
This table compares VIVUS and Fortress Biotech’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
VIVUS beats Fortress Biotech on 7 of the 12 factors compared between the two stocks.
VIVUS, Inc. is a biopharmaceutical company. The Company operates in the development and commercialization of therapeutic products segment. It provides over two therapies approved by the Food and Drug Association (FDA), which include Qsymia (phentermine and topiramate extended-release) for chronic weight management and STENDRA (avanafil) for erectile dysfunction (ED). The Company has completed the Phase II studies of Qsymia for the indication of Obstructive Sleep Apnea (OSA) and diabetes. Its Qsymia is available in over 40,000 certified retail pharmacies across the country. Its STENDRA is also approved by the European Commission (EC), under the name, SPEDRA, for the treatment of ED in the Europe. The United States Food and Drug Association approved a Supplemental New Drug Application (sNDA) for STENDRA. STENDRA is indicated to be taken approximately 15 minutes before sexual activity.
About Fortress Biotech
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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