Strongbridge Biopharma PLC (SBBP) and KalVista Pharmaceuticals (KALV) Critical Review

Strongbridge Biopharma PLC (NASDAQ: SBBP) and KalVista Pharmaceuticals (NASDAQ:KALV) 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, institutional ownership, valuation, profitability and risk.

Volatility & Risk

Strongbridge Biopharma PLC has a beta of 2.72, indicating that its share price is 172% more volatile than the S&P 500. Comparatively, KalVista Pharmaceuticals has a beta of 2.52, indicating that its share price is 152% more volatile than the S&P 500.

Earnings & Valuation

This table compares Strongbridge Biopharma PLC and KalVista Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Strongbridge Biopharma PLC $1.53 million 159.35 -$39.43 million ($2.78) -2.48
KalVista Pharmaceuticals $1.50 million 45.07 -$15.90 million N/A N/A

KalVista Pharmaceuticals has higher revenue, but lower earnings than Strongbridge Biopharma PLC.

Analyst Ratings

This is a summary of recent recommendations and price targets for Strongbridge Biopharma PLC and KalVista Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Strongbridge Biopharma PLC 0 0 3 0 3.00
KalVista Pharmaceuticals 0 0 1 0 3.00

Strongbridge Biopharma PLC presently has a consensus price target of $13.33, indicating a potential upside of 93.24%. KalVista Pharmaceuticals has a consensus price target of $18.00, indicating a potential upside of 158.62%. Given KalVista Pharmaceuticals’ higher possible upside, analysts plainly believe KalVista Pharmaceuticals is more favorable than Strongbridge Biopharma PLC.

Profitability

This table compares Strongbridge Biopharma PLC and KalVista Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Strongbridge Biopharma PLC N/A -83.83% -34.77%
KalVista Pharmaceuticals -4,191.47% -57.41% -53.08%

Institutional & Insider Ownership

63.7% of Strongbridge Biopharma PLC shares are owned by institutional investors. Comparatively, 75.7% of KalVista Pharmaceuticals shares are owned by institutional investors. 49.1% of KalVista Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Strongbridge Biopharma PLC beats KalVista Pharmaceuticals on 6 of the 11 factors compared between the two stocks.

About Strongbridge Biopharma PLC

Strongbridge Biopharma plc is a global commercial-stage biopharmaceutical company. The Company is focused on the development and commercialization of therapies for a range of diseases. The Company’s commercial product, KEVEYIS (dichlorphenamide), is indicated for the treatment of hyperkalemic, hypokalemic and related variants of primary periodic paralysis. The United States Food and Drug Administration (FDA) has granted orphan drug designation for KEVEYIS. The Company has a clinical-stage pipeline of therapies for endocrine diseases. The Company’s lead compounds include COR-003 (levoketoconazole), a cortisol synthesis inhibitor, and COR-005 (veldoreotide), a somatostatin analog (SSA). The Company is studying COR-003 for the treatment of endogenous Cushing’s syndrome. It is investigating COR-005 for the treatment of acromegaly. Both COR-003 and COR-005 have received orphan designation from the FDA and the European Medicines Agency (EMA).

About KalVista Pharmaceuticals

KalVista Pharmaceuticals, Inc., formerly Carbylan Therapeutics, Inc., is a clinical-stage pharmaceutical company. The Company is focused on the discovery, development, and commercialization of small molecule protease inhibitors for a range of diseases. The Company has developed a portfolio of small molecule plasma kallikrein inhibitors targeting hereditary angioedema (HAE) and diabetic macular edema (DME). The Company is developing a plasma kallikrein inhibitor, which is administered directly into the eye. The Company is engaged in advancing several product candidates developed from its portfolio into early clinical trials. The Company is progressing additional oral candidates towards regulatory preclinical studies. The Company’s HAE product candidate, KVD818, is an inhibitor of plasma kallikrein. The Company has initiated clinical testing of KVD818 in a Phase I clinical trial. It has completed an open-label single ascending dose Phase I trial in DME patients with KVD001.

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