Galecto (NASDAQ:GLTO) and Kadmon (NASDAQ:KDMN) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.
Institutional & Insider Ownership
94.8% of Kadmon shares are owned by institutional investors. 3.0% of Kadmon shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Galecto and Kadmon's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Galecto | N/A | N/A | N/A | N/A | N/A |
Kadmon | $5.09 million | 123.55 | $-61,370,000.00 | ($0.74) | -4.95 |
Galecto has higher earnings, but lower revenue than Kadmon.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Galecto and Kadmon, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Galecto | 0 | 0 | 3 | 0 | 3.00 |
Kadmon | 0 | 0 | 5 | 0 | 3.00 |
Galecto currently has a consensus price target of $14.00, suggesting a potential upside of 122.93%. Kadmon has a consensus price target of $12.75, suggesting a potential upside of 248.36%. Given Kadmon's higher possible upside, analysts clearly believe Kadmon is more favorable than Galecto.
Profitability
This table compares Galecto and Kadmon's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Galecto | N/A | N/A | N/A |
Kadmon | -768.36% | -85.07% | -46.46% |
Summary
Kadmon beats Galecto on 5 of the 8 factors compared between the two stocks.