XBiotech (NASDAQ:XBIT) & Spring Bank Pharmaceuticals (NASDAQ:SBPH) Critical Analysis

Spring Bank Pharmaceuticals (NASDAQ:SBPH) and XBiotech (NASDAQ:XBIT) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Institutional and Insider Ownership

42.9% of Spring Bank Pharmaceuticals shares are held by institutional investors. Comparatively, 7.1% of XBiotech shares are held by institutional investors. 15.6% of Spring Bank Pharmaceuticals shares are held by company insiders. Comparatively, 37.0% of XBiotech shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Spring Bank Pharmaceuticals and XBiotech’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spring Bank Pharmaceuticals $350,000.00 225.46 -$22.85 million ($1.87) -2.57
XBiotech N/A N/A -$21.14 million N/A N/A

XBiotech has lower revenue, but higher earnings than Spring Bank Pharmaceuticals.

Profitability

This table compares Spring Bank Pharmaceuticals and XBiotech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spring Bank Pharmaceuticals N/A -49.88% -39.42%
XBiotech N/A -51.88% -48.82%

Volatility & Risk

Spring Bank Pharmaceuticals has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, XBiotech has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Spring Bank Pharmaceuticals and XBiotech, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spring Bank Pharmaceuticals 0 0 5 0 3.00
XBiotech 0 0 1 0 3.00

Spring Bank Pharmaceuticals presently has a consensus target price of $26.75, suggesting a potential upside of 457.29%. XBiotech has a consensus target price of $13.00, suggesting a potential upside of 85.71%. Given Spring Bank Pharmaceuticals’ higher possible upside, equities research analysts clearly believe Spring Bank Pharmaceuticals is more favorable than XBiotech.

Summary

Spring Bank Pharmaceuticals beats XBiotech on 7 of the 9 factors compared between the two stocks.

Spring Bank Pharmaceuticals Company Profile

Spring Bank Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, discovers and develops therapeutics for the treatment of viral infections, inflammatory diseases, and various cancers using small molecule nucleotide platform. Its lead product candidate is inarigivir soproxil for the treatment of chronic hepatitis B virus (HBV). The company is also developing STimulator of INterferon Genes agonist product candidate, including SB 11285, an immunotherapeutic agent for the potential treatment of selected cancers. It has a collaboration agreement with Gilead Sciences, Inc. for conducting a Phase II clinical trial examining the co-administration of inarigivir and Vemlidy in patients infected with chronic HBV. The company was formerly known as Spring Bank Technologies, Inc. and changed its name to Spring Bank Pharmaceuticals, Inc. in May 2008. Spring Bank Pharmaceuticals, Inc. was founded in 2002 and is headquartered in Hopkinton, Massachusetts.

XBiotech Company Profile

XBiotech Inc., a pre-market biopharmaceutical company, engages in discovering and developing True Human monoclonal antibodies for treating various diseases. The company’s lead product is bermekimab, a therapeutic antibody that neutralizes interleukin-1 alpha, which has completed Phase III clinical trial in Europe for the treatment of symptomatic and advanced colorectal cancer. It has also investigating its lead product candidate in various clinical trials for other inflammatory conditions, including vascular disease, type II diabetes, acne, psoriasis, pyoderma gangrenosum, and hidradenitis suppurativa, as well as staphylococcus aureus infection and influenza diseases. XBiotech, Inc. was founded in 2005 and is headquartered in Austin, Texas.



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