Alimera Sciences (NASDAQ: ALIM) and Kadmon (NYSE:KDMN) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.
Risk & Volatility
Alimera Sciences has a beta of 2.16, meaning that its stock price is 116% more volatile than the S&P 500. Comparatively, Kadmon has a beta of 2.54, meaning that its stock price is 154% more volatile than the S&P 500.
41.8% of Alimera Sciences shares are held by institutional investors. Comparatively, 51.9% of Kadmon shares are held by institutional investors. 14.7% of Alimera Sciences shares are held by company insiders. Comparatively, 8.4% of Kadmon shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Alimera Sciences and Kadmon’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alimera Sciences||$34.33 million||2.58||-$33.17 million||($0.31)||-4.13|
|Kadmon||$26.06 million||12.76||-$208.75 million||($1.75)||-2.42|
Alimera Sciences has higher revenue and earnings than Kadmon. Alimera Sciences is trading at a lower price-to-earnings ratio than Kadmon, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for Alimera Sciences and Kadmon, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Alimera Sciences currently has a consensus target price of $4.00, suggesting a potential upside of 212.50%. Kadmon has a consensus target price of $9.75, suggesting a potential upside of 130.50%. Given Alimera Sciences’ stronger consensus rating and higher possible upside, analysts plainly believe Alimera Sciences is more favorable than Kadmon.
This table compares Alimera Sciences and Kadmon’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Alimera Sciences beats Kadmon on 9 of the 12 factors compared between the two stocks.
About Alimera Sciences
Alimera Sciences, Inc. (Alimera) is a pharmaceutical company. The Company is engaged in the research, development and commercialization of prescription ophthalmic pharmaceuticals. The Company operates through two segments: U.S. and International. The Company focuses on diseases affecting the back of the eye or retina. The Company’s product is ILUVIEN, which is developed to treat diabetic macular edema (DME). DME is a disease of the retina that affects individuals with diabetes and can lead to severe vision loss and blindness. In the United States, ILUVIEN is indicated for the treatment of DME in patients who have been treated with a course of corticosteroids and did not have a rise in intraocular pressure (IOP). In the European Economic Area (EEA) countries, ILUVIEN is indicated for the treatment of vision impairment associated with DME considered insufficiently responsive to available therapies.
Kadmon Holdings, Inc. is an integrated biopharmaceutical company engaged in the discovery, development and commercialization of small molecules and biologics to address disease areas of various unmet medical needs. The Company is developing product candidates in a number of indications within autoimmune and fibrotic disease, oncology and genetic diseases. Its product pipeline consists of KD025, Tesevatinib and KD034. The Company’s other products include Ribasphere RibaPak, Ribasphere, Qsymia, Tetrabenazine and Valganciclovir. KD025 is an orally available, selective small molecule inhibitor of Rho-associated coiled-coil kinase 2 (ROCK2), a molecular target in multiple autoimmune, fibrotic and neurodegenerative diseases. Tesevatinib is an oral tyrosine kinase inhibitor (TKI) designed to block key molecular drivers of tumor growth, metastases and drug resistance. KD034 is the Company’s portfolio of enhanced formulations of trientine hydrochloride for the treatment of Wilson’s disease.
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