Head to Head Review: Kadmon (KDMN) & Synlogic (NASDAQ:SYBX)

Synlogic (NASDAQ: SYBX) and Kadmon (NYSE:KDMN) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.

Earnings & Valuation

This table compares Synlogic and Kadmon’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synlogic N/A N/A -$26.26 million ($9.43) -1.09
Kadmon $26.06 million 14.73 -$208.75 million ($1.75) -2.79

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

Profitability

This table compares Synlogic and Kadmon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synlogic N/A -50.19% -46.76%
Kadmon -555.91% N/A -124.91%

Analyst Ratings

This is a summary of current recommendations and price targets for Synlogic and Kadmon, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synlogic 0 1 2 0 2.67
Kadmon 1 1 2 0 2.25

Synlogic presently has a consensus target price of $19.67, suggesting a potential upside of 91.87%. Kadmon has a consensus target price of $9.75, suggesting a potential upside of 99.80%. Given Kadmon’s higher possible upside, analysts clearly believe Kadmon is more favorable than Synlogic.

Insider and Institutional Ownership

64.2% of Synlogic shares are owned by institutional investors. Comparatively, 51.9% of Kadmon shares are owned by institutional investors. 18.6% of Synlogic shares are owned by insiders. Comparatively, 8.4% of Kadmon shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Synlogic has a beta of 3.17, indicating that its share price is 217% more volatile than the S&P 500. Comparatively, Kadmon has a beta of 2.54, indicating that its share price is 154% more volatile than the S&P 500.

Summary

Synlogic beats Kadmon on 8 of the 12 factors compared between the two stocks.

About Synlogic

Synlogic, Inc., formerly Mirna Therapeutics, Inc., is engaged in the development of a novel class of living treatments, Synthetic Biotic medicines. The Company uses its proprietary Synthetic Biotic development platform. Its pipeline includes Synthetic Biotic medicines for the treatment of rare genetic diseases, such as Urea Cycle Disorder (UCD) and Phenylketonuria (PKU). It is also focused on Synthetic Biotic medicines to address other conditions, including inflammatory bowel disease , cancer and metabolic conditions, such as diabetes and obesity. The Company’s synthetic biotic medicines leverages the tools and principles of synthetic biology to genetically reengineer probiotic microbes to perform or deliver critical functions missing or damaged due to disease. The Company’s pipeline includes synthetic biotic medicines for the treatment of inborn errors of metabolism (IEM). It is developing SYNB1020 for the treatment of UCD and HE. It is developing SYNB1618 for the treatment of PKU.

About Kadmon

Kadmon Holdings, Inc. is an integrated biopharmaceutical company engaged in the discovery, development and commercialization of small molecules and biologics to address disease areas of various unmet medical needs. The Company is developing product candidates in a number of indications within autoimmune and fibrotic disease, oncology and genetic diseases. Its product pipeline consists of KD025, Tesevatinib and KD034. The Company’s other products include Ribasphere RibaPak, Ribasphere, Qsymia, Tetrabenazine and Valganciclovir. KD025 is an orally available, selective small molecule inhibitor of Rho-associated coiled-coil kinase 2 (ROCK2), a molecular target in multiple autoimmune, fibrotic and neurodegenerative diseases. Tesevatinib is an oral tyrosine kinase inhibitor (TKI) designed to block key molecular drivers of tumor growth, metastases and drug resistance. KD034 is the Company’s portfolio of enhanced formulations of trientine hydrochloride for the treatment of Wilson’s disease.

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