Cardiome Pharma (CRME) versus Fortress Biotech (FBIO) Head-To-Head Contrast

Cardiome Pharma (NASDAQ: CRME) and Fortress Biotech (NASDAQ:FBIO) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Profitability

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This table compares Cardiome Pharma and Fortress Biotech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cardiome Pharma -124.17% -111.17% -44.22%
Fortress Biotech -46.69% -51.57% -28.08%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Cardiome Pharma and Fortress Biotech, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cardiome Pharma 0 0 3 0 3.00
Fortress Biotech 0 0 4 0 3.00

Cardiome Pharma presently has a consensus price target of $7.50, indicating a potential upside of 223.28%. Fortress Biotech has a consensus price target of $10.75, indicating a potential upside of 123.03%. Given Cardiome Pharma’s higher probable upside, research analysts clearly believe Cardiome Pharma is more favorable than Fortress Biotech.

Valuation and Earnings

This table compares Cardiome Pharma and Fortress Biotech’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cardiome Pharma $24.00 million 3.37 -$29.80 million ($0.90) -2.58
Fortress Biotech $187.58 million 1.32 -$66.87 million ($1.61) -2.99

Cardiome Pharma has higher earnings, but lower revenue 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.

Institutional and Insider Ownership

50.8% of Cardiome Pharma shares are owned by institutional investors. Comparatively, 11.8% of Fortress Biotech shares are owned by institutional investors. 33.3% of Fortress Biotech shares are owned by company 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.

Volatility & Risk

Cardiome Pharma has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500. Comparatively, Fortress Biotech has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500.

Summary

Fortress Biotech beats Cardiome Pharma on 7 of the 13 factors compared between the two stocks.

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.

Fortress Biotech Company Profile

Fortress Biotech, Inc. develops and commercializes pharmaceutical and biotechnology products. The company develops CNDO-109, a lysate that treats cancer-related and other conditions; tramadol HCl for managing postoperative pain; CAEL-101 for the treatment of amyloid light chain amyloidosis; and CEVA101 for severe traumatic brain injury in children and adults in the United States. It also develops CK-301 for treating patients with non-small cell lung cancer (NSCLC); CK-101 for the treatment of patients with epidermal growth factor receptor mutation-positive NSCLC; and antibodies that target glucocorticoid-induced TNFR-related protein and carbonic anhydrase IX, as well as anti-cancer agents that inhibit bromodomain and extra-terminal proteins, and poly polymerase. In addition, the company develops CUTX-101 for treating Menkes disease; preclinical adeno-associated virus gene therapies for treating mucopolysaccharidosis type 1, dysferlinopathies, and corneal transplant rejection; Triplex, which is in Phase II clinical study for preventing and treating cytomegalovirus (CMV); and Pentamer, a vaccine drug candidate for preventing CMV. Further, it offers Targadox, a tablet for severe acne; Luxamend wound cream; Ceracade for treating dry skin conditions; Triderm for treating eczema, dermatitis, allergies, and rash; and chimeric antigen receptor and engineered T cell therapies across various cancers. Additionally, it provides retail brokerage and wealth management services to high net worth individual and institutional clients; investment banking, merger and acquisition, and advisory services to micro, small, and mid-cap high growth companies; trades in securities; liquidity services; and tax preparation, fixed insurance sales, and licensed mortgage brokerage services. The company was formerly known as Coronado Biosciences, Inc. and changed its name to Fortress Biotech, Inc. in April 2015. Fortress Biotech, Inc. was founded in 2006 and is based in New York, New York.

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