Financial Analysis: Upstream Bio (NASDAQ:UPB) vs. Keros Therapeutics (NASDAQ:KROS)

Keros Therapeutics (NASDAQ:KROS) and Upstream Bio (NASDAQ:UPB) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Keros Therapeutics and Upstream Bio, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Keros Therapeutics	1	4	4	0	2.33
Upstream Bio	1	2	4	0	2.43

Keros Therapeutics presently has a consensus target price of $20.50, suggesting a potential upside of 71.55%. Upstream Bio has a consensus target price of $29.67, suggesting a potential upside of 531.21%. Given Upstream Bio’s stronger consensus rating and higher probable upside, analysts plainly believe Upstream Bio is more favorable than Keros Therapeutics.

Volatility & Risk

Keros Therapeutics has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Upstream Bio has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.

Valuation & Earnings

This table compares Keros Therapeutics and Upstream Bio”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Keros Therapeutics	$244.06 million	0.97	$87.01 million	($3.70)	-3.23
Upstream Bio	$3.16 million	81.51	-$143.44 million	($2.90)	-1.62

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

Insider and Institutional Ownership

71.6% of Keros Therapeutics shares are held by institutional investors. 12.6% of Keros Therapeutics shares are held by insiders. Comparatively, 16.5% of Upstream Bio shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Keros Therapeutics and Upstream Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Keros Therapeutics	-256.60%	-21.40%	-19.79%
Upstream Bio	-4,955.67%	-48.40%	-46.57%

Summary

Upstream Bio beats Keros Therapeutics on 7 of the 13 factors compared between the two stocks.

About Keros Therapeutics

Keros Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops and commercializes novel therapeutics for patients with disorders that are linked to dysfunctional signaling of the transforming growth factor-beta family of proteins in the United States. The company's lead product candidate is KER-050, which is being developed for the treatment of low blood cell counts, or cytopenias, including anemia and thrombocytopenia in patients with myelodysplastic syndromes, as well as in patients with myelofibrosis. It also develops KER-012, which is in Phase II clinical trial to treat pulmonary arterial hypertension and cardiovascular disorders; and KER-065 that is in Phase I clinical trial for the treatment of obesity and neuromuscular diseases. In addition, the company has collaboration and license agreement with Hansoh (Shanghai) Healthtech Co., Ltd. to develop, manufacture, and commercialize KER-050 and licensed products containing KER-050. Keros Therapeutics, Inc. was incorporated in 2015 and is headquartered in Lexington, Massachusetts.

About Upstream Bio

Upstream Bio, Inc., a clinical-stage biotechnology company, develops treatments for inflammatory diseases that focuses on severe respiratory disorders. It develops verekitug, a monoclonal antibody that targets and inhibits the thymic stromal lymphopoietin receptor. The company also develops therapies to treat severe asthma, chronic rhinosinusitis with nasal polyps, and chronic obstructive pulmonary disease. Upstream Bio, Inc. was incorporated in 2021 and is based in Waltham, Massachusetts.