Critical Review: Kadmon (KDMN) & KalVista Pharmaceuticals (NASDAQ:KALV)

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

Earnings & Valuation

This table compares KalVista Pharmaceuticals and Kadmon’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KalVista Pharmaceuticals $1.50 million 80.49 -$18.60 million ($2.44) -4.59
Kadmon $26.06 million 10.95 -$208.75 million ($1.75) -2.07

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

Insider & Institutional Ownership

68.6% of KalVista Pharmaceuticals shares are owned by institutional investors. Comparatively, 51.9% of Kadmon shares are owned by institutional investors. 49.1% of KalVista Pharmaceuticals shares are owned by insiders. Comparatively, 8.4% of Kadmon shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for KalVista Pharmaceuticals and Kadmon, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KalVista Pharmaceuticals 0 0 1 0 3.00
Kadmon 1 1 3 0 2.40

KalVista Pharmaceuticals presently has a consensus price target of $27.00, suggesting a potential upside of 141.07%. Kadmon has a consensus price target of $11.40, suggesting a potential upside of 214.05%. Given Kadmon’s higher possible upside, analysts plainly believe Kadmon is more favorable than KalVista Pharmaceuticals.

Profitability

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

Net Margins Return on Equity Return on Assets
KalVista Pharmaceuticals -1,379.58% -70.20% -63.10%
Kadmon -555.91% N/A -124.91%

Summary

Kadmon beats KalVista Pharmaceuticals on 7 of the 13 factors compared between the two stocks.

About KalVista Pharmaceuticals

KalVista Pharmaceuticals, Inc., formerly Carbylan Therapeutics, Inc., is a clinical-stage pharmaceutical company. The Company is focused on the discovery, development, and commercialization of small molecule protease inhibitors for a range of diseases. The Company has developed a portfolio of small molecule plasma kallikrein inhibitors targeting hereditary angioedema (HAE) and diabetic macular edema (DME). The Company is developing a plasma kallikrein inhibitor, which is administered directly into the eye. The Company is engaged in advancing several product candidates developed from its portfolio into early clinical trials. The Company is progressing additional oral candidates towards regulatory preclinical studies. The Company’s HAE product candidate, KVD818, is an inhibitor of plasma kallikrein. The Company has initiated clinical testing of KVD818 in a Phase I clinical trial. It has completed an open-label single ascending dose Phase I trial in DME patients with KVD001.

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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