Kindred Biosciences (KIN) and Rigel Pharmaceuticals (RIGL) Critical Contrast

Kindred Biosciences (NASDAQ: KIN) and Rigel Pharmaceuticals (NASDAQ:RIGL) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Analyst Recommendations

This is a summary of recent recommendations for Kindred Biosciences and Rigel Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kindred Biosciences 0 2 4 0 2.67
Rigel Pharmaceuticals 0 0 5 0 3.00

Kindred Biosciences presently has a consensus target price of $9.90, indicating a potential upside of 16.47%. Rigel Pharmaceuticals has a consensus target price of $5.80, indicating a potential upside of 55.50%. Given Rigel Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Rigel Pharmaceuticals is more favorable than Kindred Biosciences.

Insider & Institutional Ownership

66.6% of Kindred Biosciences shares are owned by institutional investors. Comparatively, 84.2% of Rigel Pharmaceuticals shares are owned by institutional investors. 19.1% of Kindred Biosciences shares are owned by insiders. Comparatively, 5.2% of Rigel Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Kindred Biosciences has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500. Comparatively, Rigel Pharmaceuticals has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.

Profitability

This table compares Kindred Biosciences and Rigel Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kindred Biosciences N/A -36.18% -34.66%
Rigel Pharmaceuticals N/A -102.26% -80.57%

Earnings and Valuation

This table compares Kindred Biosciences and Rigel Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kindred Biosciences N/A N/A -$22.49 million ($1.17) -7.26
Rigel Pharmaceuticals $20.38 million 26.81 -$69.21 million ($0.59) -6.32

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

Summary

Rigel Pharmaceuticals beats Kindred Biosciences on 8 of the 12 factors compared between the two stocks.

About Kindred Biosciences

Kindred Biosciences, Inc. is a development-stage biopharmaceutical company. The Company is focused on developing therapies for pets. The Company’s product pipeline consists of small molecules and biologics for a range of indications in dogs, cats and horses. The Company is developing product candidates for over 20 indications and focused on small molecule products and canine and feline biologics products. The Company is developing antibodies that targets canine Interleukin 17A (IL-17a), Interleukin 4A (IL-4Ra), Interleukin 3 (IL-3), CD-20, Immunoglobulin E (IgE), tumor necrosis factors (TNF) and other validated targets. The Company’s lead product candidates are Zimeta, which is indicated for the treatment of fever in horses, and KIND-010 for management of weight loss in cats. The Company’s other product candidates include KIND-010, KIND-014, KIND-015, KIND-510, KIND-502, KIND-0888, KIND-509, and several antibodies that target cytokines involved in atopic dermatitis.

About Rigel Pharmaceuticals

Rigel Pharmaceuticals, Inc. is a clinical-stage biotechnology company. The Company is engaged in the discovering, developing and providing novel small molecule drugs that improve the lives of patients with immune and hematological disorders, cancer and rare diseases. The Company’s pioneering research focuses on signaling pathways that are critical to disease mechanisms. The Company’s clinical programs include clinical trials of fostamatinib, an oral spleen tyrosine kinase (SYK) inhibitor, in a number of indications. The Company has submitted a new drug application (NDA) to the United States food and drug administration (FDA) for fostamatinib in patients with chronic or persistent immune thrombocytopenia (ITP). In addition, the Company has product candidates in development with partners BerGenBio AS, Daiichi Sankyo and Aclaris Therapeutics. The Company is engaged in conducting research in the disease areas of inflammation/immunology and muscle wasting/muscle endurance.

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