Critical Survey: Fortress Biotech (NASDAQ:FBIO) vs. 60 Degrees Pharmaceuticals (NASDAQ:SXTP)

Fortress Biotech (NASDAQ:FBIO) and 60 Degrees Pharmaceuticals (NASDAQ:SXTP) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Volatility & Risk

Fortress Biotech has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, 60 Degrees Pharmaceuticals has a beta of 2.4, indicating that its share price is 140% more volatile than the S&P 500.

Earnings & Valuation

This table compares Fortress Biotech and 60 Degrees Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fortress Biotech	$63.26 million	1.12	$6.82 million	$2.64	0.81
60 Degrees Pharmaceuticals	$1.41 million	2.41	-$7.36 million	($4.82)	-0.20

Fortress Biotech has higher revenue and earnings than 60 Degrees Pharmaceuticals. 60 Degrees Pharmaceuticals is trading at a lower price-to-earnings ratio than Fortress Biotech, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

96.5% of Fortress Biotech shares are held by institutional investors. Comparatively, 8.0% of 60 Degrees Pharmaceuticals shares are held by institutional investors. 28.5% of Fortress Biotech shares are held by company insiders. Comparatively, 1.7% of 60 Degrees Pharmaceuticals shares are held 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.

Profitability

This table compares Fortress Biotech and 60 Degrees Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fortress Biotech	163.32%	83.47%	42.98%
60 Degrees Pharmaceuticals	-650.21%	N/A	-136.81%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Fortress Biotech and 60 Degrees Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortress Biotech	0	2	2	0	2.50
60 Degrees Pharmaceuticals	1	2	1	0	2.00

Fortress Biotech currently has a consensus target price of $17.00, indicating a potential upside of 698.12%. 60 Degrees Pharmaceuticals has a consensus target price of $13.85, indicating a potential upside of 1,334.64%. Given 60 Degrees Pharmaceuticals’ higher possible upside, analysts plainly believe 60 Degrees Pharmaceuticals is more favorable than Fortress Biotech.

Summary

Fortress Biotech beats 60 Degrees Pharmaceuticals on 11 of the 14 factors compared between the two stocks.

About Fortress Biotech

Fortress Biotech, Inc., a biopharmaceutical company, develops dermatology, pharmaceutical, and biotechnology products in the United States. The company markets dermatology products, such as Qbrexza a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane capsules for severe recalcitrant nodular acne; Amzeeq for severe acne vulgaris; Zilxi, a topical foam; Exelderm cream and solution for topical use; Targadox an oral doxycycline drug for adjunctive therapy for severe acne; Luxamend; sulconazole nitrate cream and solution for tinea cruris and tinea corporis; and doxycycline hyclate tablet. It also develops late stage product candidates, such as intravenous Tramadol for the treatment of post-operative acute pain; CUTX-101, an injection for the treatment of Menkes disease; Cosibelimab for metastatic cancers; Olafertinib for the treatment of patients with EGFR mutation-positive NSCLC; CAEL-101 for the treatment of amyloid light chain amyloidosis; Triplex vaccine for cytomegalovirus; and DFD-29 for the treatment of rosacea. The company’s early stage product candidates include Dotinurad for gout; MB-106 for B-cell non-hodgkin lymphoma; MB-101 for glioblastoma; MB-108 for recurrent GBM; MB-109 for refractory glioblastoma; AJ201, an androgen receptor degradation enhancer; BAER-101, a positive allosteric modulator; MB-117 for newly diagnosed x-linked severe combined immunodeficiency; and MB217 for previously transplanted; and MB-110 for RAG1 severe combined immunodeficiency. Its preclinical product candidates comprise Mayo Clinic In Vivo CAR T Platform Technology; AAV-ATP7A gene therapy; AVTS-001 gene therapy; CK-103 BET inhibitor; CEVA-D and CEVA-102; CK-302, an anti-GITR; CK-303, an anti-CAIX; and oligonucleotide platform. The company was formerly known as Coronado Biosciences, Inc. and changed its name to Fortress Biotech, Inc. in April 2015. Fortress Biotech, Inc. was incorporated in 2006 and is based in Bay Harbor Islands, Florida.

About 60 Degrees Pharmaceuticals

60 Degrees Pharmaceuticals, Inc., a specialty pharmaceutical company, engages in the development and commercialization of therapies for the prevention and treatment of infectious diseases in the United States. The company offers Arakoda for malaria preventative treatment. It also engages in the development of Tafenoquine (Arakoda regimen) that is in Phase IIb clinical trial for COVID-19 indications; Tafenoquine, which is in phase IIA clinical trials for babesiosis, fungal pneumonias, and candidiasis disease; and Celgosivir for respiratory viruses and dengue. The company was founded in 2010 and is headquartered in Washington, the District of Columbia.