Applied Therapeutics (NASDAQ:APLT – Get Free Report) and Fate Therapeutics (NASDAQ:FATE – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.
Insider and Institutional Ownership
98.3% of Applied Therapeutics shares are held by institutional investors. Comparatively, 97.5% of Fate Therapeutics shares are held by institutional investors. 1.6% of Applied Therapeutics shares are held by insiders. Comparatively, 4.7% of Fate Therapeutics shares are held by 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 & Earnings
This table compares Applied Therapeutics and Fate Therapeutics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Applied Therapeutics | $1.00 million | 15.86 | -$105.62 million | ($0.10) | -1.03 |
| Fate Therapeutics | $6.65 million | 32.25 | -$136.32 million | ($1.05) | -1.70 |
Applied Therapeutics has higher earnings, but lower revenue than Fate Therapeutics. Fate Therapeutics is trading at a lower price-to-earnings ratio than Applied Therapeutics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Applied Therapeutics and Fate Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Applied Therapeutics | N/A | -340.84% | -175.00% |
| Fate Therapeutics | -1,941.09% | -65.08% | -41.73% |
Risk and Volatility
Applied Therapeutics has a beta of 2.08, meaning that its share price is 108% more volatile than the S&P 500. Comparatively, Fate Therapeutics has a beta of 2.52, meaning that its share price is 152% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Applied Therapeutics and Fate Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Applied Therapeutics | 1 | 2 | 0 | 0 | 1.67 |
| Fate Therapeutics | 1 | 3 | 4 | 0 | 2.38 |
Applied Therapeutics presently has a consensus price target of $1.00, indicating a potential upside of 870.87%. Fate Therapeutics has a consensus price target of $5.90, indicating a potential upside of 229.61%. Given Applied Therapeutics’ higher probable upside, research analysts plainly believe Applied Therapeutics is more favorable than Fate Therapeutics.
Summary
Fate Therapeutics beats Applied Therapeutics on 8 of the 14 factors compared between the two stocks.
About Applied Therapeutics
Applied Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in the development of a pipeline of novel product candidates against validated molecular targets in indications of high unmet medical need in the United States. The company's lead product candidate is AT-007 (also called govorestat) that has completed phase 3 for the treatment of galactosemia in healthy volunteers and adults, in pediatric clinical study for the treatment of galactosemia in kids, for treating enzyme sorbitol dehydrogenase, and for the treatment of phosphomannomutase enzyme-CDG. It also develops AT-001 (also called caficrestat) that is in phase 3 clinical trials to treat diabetic cardiomyopathy, as well as for the treatment of diabetic peripheral neuropathy; and AT-003, which is in preclinical studies for the treatment diabetic retinopathy. The company has exclusive license and supply agreement with Mercury Pharma Group Limited to commercialize drug products containing AT-007. Applied Therapeutics, Inc. was incorporated in 2016 and is headquartered in New York, New York.
About Fate Therapeutics
Fate Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops programmed cellular immunotherapies for cancer and immune disorders worldwide. The company's chimeric antigen receptor (CAR)-targeted NK and T-cell product candidates include FT576 to treat multiple myeloma, and FT522, to treat lymphoma and autoimmune disorders. Its CAR T-cell programs include FT819 to treat hematologic malignancies and solid tumors, and FT825 to treat solid tumors. The company has a collaboration and option agreement with Ono Pharmaceutical Co. Ltd. for the development and commercialization of off-the-shelf, iPSC-derived CAR T-cell product candidates for the treatment of cancer. Fate Therapeutics, Inc. was incorporated in 2007 and is headquartered in San Diego, California.
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