Critical Contrast: Forte Biosciences (NASDAQ:FBRX) vs. Kiniksa Pharmaceuticals (NASDAQ:KNSA)

Kiniksa Pharmaceuticals (NASDAQ:KNSA) and Forte Biosciences (NASDAQ:FBRX) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Kiniksa Pharmaceuticals and Forte Biosciences, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kiniksa Pharmaceuticals	0	0	2	0	3.00
Forte Biosciences	0	1	1	0	2.50

Kiniksa Pharmaceuticals currently has a consensus price target of $30.00, suggesting a potential upside of 67.97%. Forte Biosciences has a consensus price target of $2.75, suggesting a potential upside of 287.32%. Given Forte Biosciences’ higher probable upside, analysts plainly believe Forte Biosciences is more favorable than Kiniksa Pharmaceuticals.

Institutional & Insider Ownership

54.0% of Kiniksa Pharmaceuticals shares are held by institutional investors. Comparatively, 77.6% of Forte Biosciences shares are held by institutional investors. 54.2% of Kiniksa Pharmaceuticals shares are held by company insiders. Comparatively, 10.5% of Forte Biosciences shares are held by company 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.

Valuation & Earnings

This table compares Kiniksa Pharmaceuticals and Forte Biosciences’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kiniksa Pharmaceuticals	$270.26 million	4.67	$14.08 million	$0.18	99.23
Forte Biosciences	N/A	N/A	-$31.48 million	($1.04)	-0.68

Kiniksa Pharmaceuticals has higher revenue and earnings than Forte Biosciences. Forte Biosciences is trading at a lower price-to-earnings ratio than Kiniksa Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kiniksa Pharmaceuticals and Forte Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kiniksa Pharmaceuticals	5.11%	-6.12%	-5.20%
Forte Biosciences	N/A	-94.27%	-81.36%

Risk and Volatility

Kiniksa Pharmaceuticals has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500. Comparatively, Forte Biosciences has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.

Summary

Kiniksa Pharmaceuticals beats Forte Biosciences on 10 of the 13 factors compared between the two stocks.

About Kiniksa Pharmaceuticals

Kiniksa Pharmaceuticals, Ltd., a biopharmaceutical company, focuses on discovering, acquiring, developing, and commercializing therapeutic medicines for patients suffering from debilitating diseases with significant unmet medical needs worldwide. Its product candidates include ARCALYST, an interleukin-1alpha and interleukin-1beta, for the treatment of recurrent pericarditis, which is an inflammatory cardiovascular disease; Mavrilimumab, a monoclonal antibody inhibitor that completed Phase II clinical trials for the treatment of giant cell arteritis; Vixarelimab, a monoclonal antibody, that is in Phase 2b clinical trial for the treatment of prurigo nodularis, a chronic inflammatory skin condition; and KPL-404, a monoclonal antibody inhibitor of the CD40- CD154 interaction, a T-cell co-stimulatory signal critical for B-cell maturation, immunoglobulin class switching, and type 1 immune response. The company was incorporated in 2015 and is based in Hamilton, Bermuda.

About Forte Biosciences

Forte Biosciences, Inc. operates as a biopharmaceutical company in the United States. The company is developing FB-102 program that addresses various autoimmune diseases, such as graft-versus-host disease, and vitiligo and alopecia areata. Forte Biosciences, Inc. is headquartered in Dallas, Texas.