Acorda Therapeutics (NASDAQ: ACOR) and Fate Therapeutics (NASDAQ:FATE) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.
Risk and Volatility
Acorda Therapeutics has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500. Comparatively, Fate Therapeutics has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.
This is a summary of current ratings for Acorda Therapeutics and Fate Therapeutics, as reported by MarketBeat.com.
||Strong Buy Ratings
Acorda Therapeutics currently has a consensus price target of $21.83, indicating a potential downside of 23.93%. Fate Therapeutics has a consensus price target of $16.17, indicating a potential upside of 42.56%. Given Fate Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Fate Therapeutics is more favorable than Acorda Therapeutics.
Valuation and Earnings
This table compares Acorda Therapeutics and Fate Therapeutics’ gross revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Fate Therapeutics has lower revenue, but higher earnings than Acorda Therapeutics. Fate Therapeutics is trading at a lower price-to-earnings ratio than Acorda Therapeutics, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
74.6% of Fate Therapeutics shares are held by institutional investors. 7.8% of Acorda Therapeutics shares are held by insiders. Comparatively, 9.9% of Fate Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Acorda Therapeutics and Fate Therapeutics’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Fate Therapeutics beats Acorda Therapeutics on 9 of the 15 factors compared between the two stocks.
Acorda Therapeutics Company Profile
Acorda Therapeutics, Inc., a biopharmaceutical company, identifies, develops, and commercializes therapies for neurological disorders in the United States. The company markets Ampyra (dalfampridine), an oral drug to improve walking in patients with multiple sclerosis (MS); and Qutenza, a dermal patch for the management of neuropathic pain associated with post-herpetic neuralgia. It also markets Ampyra as Fampyra in Europe, Asia, and the Americas. In addition, the company develops Inbrija for the treatment of OFF periods in Parkinson's disease; an inhaled triptan (zolmitriptan) for acute treatment of migraine by using the ARCUS drug delivery technology; SYN120, which is completed Phase II clinical trial to treat Parkinson's disease-related dementia; and BTT1023 (timolumab) that is in Phase II clinical trial for primary sclerosing cholangitis. Further, it develops rHIgM22, which is in Phase I clinical trial for the treatment of MS; and Cimaglermin alfa that is in Phase Ib clinical trial for heart failure patients. The company has collaborations and license agreements with Biogen International GmbH; Alkermes plc; Rush-Presbyterian St. Luke's Medical Center; Alkermes, Inc.; Astellas Pharma Europe Ltd.; Canadian Spinal Research Organization; Mayo Foundation for Education and Research; Paion AG; Medarex, Inc.; and Brigham and Women's Hospital, Inc. Acorda Therapeutics, Inc. was founded in 1995 and is headquartered in Ardsley, New York.
Fate Therapeutics Company Profile
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.
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