Head-To-Head Analysis: Fate Therapeutics (FATE) & Nantkwest (NK)

Fate Therapeutics (NASDAQ: FATE) and Nantkwest (NASDAQ:NK) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.

Volatility & Risk

Fate Therapeutics has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500. Comparatively, Nantkwest has a beta of 2.79, suggesting that its share price is 179% more volatile than the S&P 500.

Profitability

This table compares Fate Therapeutics and Nantkwest’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fate Therapeutics -1,143.99% -77.27% -54.40%
Nantkwest -254,940.98% -43.71% -37.53%

Earnings & Valuation

This table compares Fate Therapeutics and Nantkwest’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fate Therapeutics $4.11 million 145.85 -$42.95 million ($1.02) -11.12
Nantkwest $50,000.00 4,779.11 -$96.42 million ($1.20) -2.55

Fate Therapeutics has higher revenue and earnings than Nantkwest. Fate Therapeutics is trading at a lower price-to-earnings ratio than Nantkwest, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

74.6% of Fate Therapeutics shares are held by institutional investors. Comparatively, 14.3% of Nantkwest shares are held by institutional investors. 9.9% of Fate Therapeutics shares are held by insiders. Comparatively, 72.3% of Nantkwest shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Fate Therapeutics and Nantkwest, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fate Therapeutics 0 2 5 1 2.88
Nantkwest 1 1 0 0 1.50

Fate Therapeutics currently has a consensus price target of $16.17, indicating a potential upside of 42.56%. Nantkwest has a consensus price target of $3.00, indicating a potential downside of 1.96%. Given Fate Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Fate Therapeutics is more favorable than Nantkwest.

Summary

Fate Therapeutics beats Nantkwest on 9 of the 15 factors compared between the two stocks.

About Fate Therapeutics

Fate Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops programmed cellular immunotherapies for cancer and immune disorders worldwide. Its immuno-oncology product candidates include FATE-NK100, a natural killer (NK) cell cancer immunotherapy that consists of adaptive memory NK cells; FT500 induced pluripotent stem cells (iPSC)-derived NK cell product candidate for the treatment of advanced solid tumors; FT516 engineered iPSC-derived NK cell product candidate for the treatment of hematologic/solid tumors; and FT819 engineered chimeric antigen receptor 19 iPSC-derived T-cell product candidate for hematologic/solid tumors. The company's immuno-regulation product candidates comprise ProTmune, an investigational programmed cellular immunotherapy for use as a next-generation allogeneic hematopoietic cell transplantation cell graft; ToleraCyte for the treatment of autoimmune and inflammatory diseases; and FT300 iPSC-derived myeloid derived suppressor cell product candidate for the treatment of autoimmune diseases. Fate Therapeutics, Inc. has a research collaboration and license agreement with Memorial Sloan Kettering Cancer Center to develop off-the-shelf engineered T-cell product candidates; a research collaboration partnership with the University of California San Diego to develop off-the-shelf chimeric antigen receptor-targeted natural killer cell cancer immunotherapies. It also has a strategic research collaboration and license agreement with Juno Therapeutics, Inc. to identify small molecule modulators that enhance the function of T cells. Fate Therapeutics, Inc. was founded in 2007 and is headquartered in San Diego, California.

About Nantkwest

NantKwest, Inc., a clinical-stage immunotherapy biotechnology company, develops immunotherapeutic treatments for cancer, infectious diseases, and inflammatory diseases in the United States. The company develops activated natural killer cell, a natural killer cell-line and genetically modified derivative capable of killing cancer and virally infected cells; and NANT cancer vaccine, a personalized therapy that utilizes its off-the-shelf natural killer cells. It is also developing high-affinity natural killer product candidates primarily for the treatment of various cancers; and target activated natural killer product candidates to treat hematological malignancies and solid tumors. NantKwest, Inc. has a co-development agreement with Altor Bio Science Corporation to collaborate on the development of therapeutic applications combining the company's proprietary natural killer cells with Altor's ALT-801 and/or ALT-803 products. The company was formerly known as Conkwest, Inc. and changed its name to NantKwest, Inc. in July 2015. NantKwest, Inc. was founded in 2002 and is headquartered in San Diego, California.

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