Cardiome Pharma (NASDAQ: CRME) and Fortress Biotech (NASDAQ:FBIO) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.
Insider & Institutional Ownership
50.8% of Cardiome Pharma shares are held by institutional investors. Comparatively, 11.9% of Fortress Biotech shares are held by institutional investors. 33.3% of Fortress Biotech shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a summary of current ratings and recommmendations for Cardiome Pharma and Fortress Biotech, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cardiome Pharma presently has a consensus price target of $7.50, indicating a potential upside of 292.67%. Fortress Biotech has a consensus price target of $10.75, indicating a potential upside of 114.14%. Given Cardiome Pharma’s higher possible upside, research analysts plainly believe Cardiome Pharma is more favorable than Fortress Biotech.
Volatility and Risk
Cardiome Pharma has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Fortress Biotech has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500.
This table compares Cardiome Pharma and Fortress Biotech’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Cardiome Pharma and Fortress Biotech’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cardiome Pharma||$24.00 million||2.76||-$29.80 million||($0.90)||-2.12|
|Fortress Biotech||$187.58 million||1.37||-$66.88 million||($1.61)||-3.12|
Cardiome Pharma has higher earnings, but lower revenue than Fortress Biotech. Fortress Biotech is trading at a lower price-to-earnings ratio than Cardiome Pharma, indicating that it is currently the more affordable of the two stocks.
About Cardiome Pharma
Cardiome Pharma Corp. (Cardiome) is a specialty pharmaceutical company. The Company is engaged in the development and commercialization of cardiovascular therapies for heart disease. The Company’s segments are Europe and Rest of World. Cardiome has two marketed, in-hospital, cardiology products, which include BRINAVESS (vernakalant IV), approved in Europe and other territories for the conversion of onset atrial fibrillation (AF) to sinus rhythm in adults, and AGGRASTAT (tirofiban hydrochloride (HCl)), indicated for use in patients with acute coronary syndrome. Cardiome also commercializes ESMOCARD and ESMOCARD LYO (esmolol hydrochloride), a short-acting beta-blocker used to control heart rate in various cardiovascular indications, in select European markets. Cardiome has also licensed TREVYENT, a development-stage drug device combination product that is under development for pulmonary arterial hypertension, in certain regions outside the United States.
About Fortress Biotech
Fortress Biotech, Inc., formerly Coronado Biosciences, Inc., is a biopharmaceutical company. The Company is involved in the development of immunotherapy agents for the treatment of autoimmune diseases and cancer. Its sole product candidate is CNDO-109. The Company is also focused on acquiring, developing and commercializing pharmaceutical and biotechnology products. The Company’s product, CNDO-109, is a lysate (disrupted Closteroviridae (CTV)-1 cells, cell membrane fragments, cell proteins and other cellular components) that activates donor Natural Killer (NK) cells. CTV-1 is a leukemic cell line re-classified as a T-cell acute lymphocytic leukemia (ALL). The Company holds the license to develop and commercialize CNDO-109 to activate NK cells for the treatment of cancer-related and other conditions, and a non-exclusive license to certain clinical data solely for use in the Investigational new drug (IND) for CNDO-109. The Company is conducting the Phase I clinical studies of CNDO-109.
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