KALA BIO (NASDAQ:KALA – Get Free Report) and Connect Biopharma (NASDAQ:CNTB – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
Volatility and Risk
KALA BIO has a beta of -2.15, suggesting that its share price is 315% less volatile than the S&P 500. Comparatively, Connect Biopharma has a beta of -0.34, suggesting that its share price is 134% less volatile than the S&P 500.
Earnings & Valuation
This table compares KALA BIO and Connect Biopharma”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KALA BIO | $3.89 million | 7.21 | -$42.20 million | ($12.47) | -0.49 |
| Connect Biopharma | $24.12 million | 2.63 | -$59.50 million | N/A | N/A |
Insider & Institutional Ownership
24.6% of KALA BIO shares are owned by institutional investors. Comparatively, 58.7% of Connect Biopharma shares are owned by institutional investors. 8.3% of KALA BIO shares are owned by insiders. Comparatively, 22.6% of Connect Biopharma shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares KALA BIO and Connect Biopharma’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KALA BIO | N/A | -448.61% | -69.37% |
| Connect Biopharma | N/A | N/A | N/A |
Analyst Ratings
This is a breakdown of current ratings and price targets for KALA BIO and Connect Biopharma, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KALA BIO | 0 | 0 | 2 | 0 | 3.00 |
| Connect Biopharma | 0 | 0 | 1 | 0 | 3.00 |
KALA BIO currently has a consensus target price of $15.00, indicating a potential upside of 146.71%. Connect Biopharma has a consensus target price of $8.00, indicating a potential upside of 595.65%. Given Connect Biopharma’s higher probable upside, analysts plainly believe Connect Biopharma is more favorable than KALA BIO.
Summary
Connect Biopharma beats KALA BIO on 7 of the 10 factors compared between the two stocks.
About KALA BIO
KALA BIO, Inc., a clinical-stage biopharmaceutical company, engages in the research, development, and commercialization of innovative therapies for rare and severe eye diseases in the United States. The company's product candidates include KPI-012, which is in Phase 2b clinical trial for the treatment of persistent corneal epithelial defects. Its preclinical development product, including KPI-014 for the treatment of rare inherited retinal diseases. The company was formerly known as Kala Pharmaceuticals, Inc. and changed its name to KALA BIO, Inc. in August 2023. KALA BIO, Inc. was incorporated in 2009 and is headquartered in Arlington, Massachusetts.
About Connect Biopharma
Connect Biopharma Holdings Limited, a clinical-stage biopharmaceutical company, engages in the development of therapies for the treatment of T cell-driven inflammatory diseases. The company is building a pipeline of small molecules and antibodies using functional T cell assays to screen and discover potent product candidates against validated immune targets. Its lead product candidate is rademikibart (formerly CBP-201), an antibody designed to target interleukin-4 receptor alpha, which is a validated target for the treatment of inflammatory diseases such as atopic dermatitis and asthma, currently under Phase 3 studies; and icanbelimod (formerly CBP-307), an oral small molecule Sphingosine 1-Phosphate Receptor 1 modulator, currently under Phase 2 clinical for the treatment of ulcerative colitis and Crohn's disease. The company was founded in 2012 and is based in San Diego, California.
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