Fortress Biotech (NASDAQ: FBIO) and Cardiome Pharma (NASDAQ:CRME) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.
This is a breakdown of current recommendations and price targets for Fortress Biotech and Cardiome Pharma, as provided by MarketBeat.
||Strong Buy Ratings
Fortress Biotech presently has a consensus price target of $10.80, suggesting a potential upside of 112.60%. Cardiome Pharma has a consensus price target of $7.25, suggesting a potential upside of 361.78%. Given Cardiome Pharma’s higher possible upside, analysts plainly believe Cardiome Pharma is more favorable than Fortress Biotech.
Institutional & Insider Ownership
11.9% of Fortress Biotech shares are owned by institutional investors. Comparatively, 50.8% of Cardiome Pharma shares are owned by institutional investors. 33.3% of Fortress Biotech shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Fortress Biotech has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, Cardiome Pharma has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.
This table compares Fortress Biotech and Cardiome Pharma’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Valuation and Earnings
This table compares Fortress Biotech and Cardiome Pharma’s gross revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Cardiome Pharma has higher revenue and earnings than Fortress Biotech. Fortress Biotech is trading at a lower price-to-earnings ratio than Cardiome Pharma, indicating that it is currently the more affordable of the two stocks.
Fortress Biotech Company Profile
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.
Cardiome Pharma Company Profile
Cardiome Pharma Corp. (Cardiome) is a specialty pharmaceutical company. The Company is engaged in the development and commercialization of cardiovascular therapies for heart disease. The Company’s segments are Europe and Rest of World. Cardiome has two marketed, in-hospital, cardiology products, which include BRINAVESS (vernakalant IV), approved in Europe and other territories for the conversion of onset atrial fibrillation (AF) to sinus rhythm in adults, and AGGRASTAT (tirofiban hydrochloride (HCl)), indicated for use in patients with acute coronary syndrome. Cardiome also commercializes ESMOCARD and ESMOCARD LYO (esmolol hydrochloride), a short-acting beta-blocker used to control heart rate in various cardiovascular indications, in select European markets. Cardiome has also licensed TREVYENT, a development-stage drug device combination product that is under development for pulmonary arterial hypertension, in certain regions outside the United States.
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