Kadmon (NYSE: KDMN) and VIVUS (NASDAQ:VVUS) are both small-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.
Insider & Institutional Ownership
61.7% of Kadmon shares are owned by institutional investors. Comparatively, 24.9% of VIVUS shares are owned by institutional investors. 8.4% of Kadmon shares are owned by insiders. Comparatively, 4.4% of VIVUS shares are owned 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 breakdown of recent recommendations and price targets for Kadmon and VIVUS, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kadmon currently has a consensus target price of $11.40, suggesting a potential upside of 165.73%. Given Kadmon’s higher possible upside, analysts clearly believe Kadmon is more favorable than VIVUS.
Valuation & Earnings
This table compares Kadmon and VIVUS’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kadmon||$12.26 million||27.52||-$79.77 million||($1.49)||-2.88|
|VIVUS||$124.26 million||0.43||$23.30 million||($0.29)||-1.72|
VIVUS has higher revenue and earnings than Kadmon. Kadmon is trading at a lower price-to-earnings ratio than VIVUS, indicating that it is currently the more affordable of the two stocks.
This table compares Kadmon and VIVUS’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
VIVUS beats Kadmon on 7 of the 12 factors compared between the two stocks.
Kadmon Company Profile
Kadmon Holdings, Inc. is an integrated biopharmaceutical company engaged in the discovery, development and commercialization of small molecules and biologics to address disease areas of various unmet medical needs. The Company is developing product candidates in a number of indications within autoimmune and fibrotic disease, oncology and genetic diseases. Its product pipeline consists of KD025, Tesevatinib and KD034. The Company’s other products include Ribasphere RibaPak, Ribasphere, Qsymia, Tetrabenazine and Valganciclovir. KD025 is an orally available, selective small molecule inhibitor of Rho-associated coiled-coil kinase 2 (ROCK2), a molecular target in multiple autoimmune, fibrotic and neurodegenerative diseases. Tesevatinib is an oral tyrosine kinase inhibitor (TKI) designed to block key molecular drivers of tumor growth, metastases and drug resistance. KD034 is the Company’s portfolio of enhanced formulations of trientine hydrochloride for the treatment of Wilson’s disease.
VIVUS Company Profile
VIVUS, Inc. is a biopharmaceutical company. The Company operates in the development and commercialization of therapeutic products segment. It provides over two therapies approved by the Food and Drug Association (FDA), which include Qsymia (phentermine and topiramate extended-release) for chronic weight management and STENDRA (avanafil) for erectile dysfunction (ED). The Company has completed the Phase II studies of Qsymia for the indication of Obstructive Sleep Apnea (OSA) and diabetes. Its Qsymia is available in over 40,000 certified retail pharmacies across the country. Its STENDRA is also approved by the European Commission (EC), under the name, SPEDRA, for the treatment of ED in the Europe. The United States Food and Drug Association approved a Supplemental New Drug Application (sNDA) for STENDRA. STENDRA is indicated to be taken approximately 15 minutes before sexual activity.
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