Analyzing XBiotech (NASDAQ:XBIT) & Spring Bank Pharmaceuticals (NASDAQ:SBPH)

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

Profitability

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

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

Insider & Institutional Ownership

7.1% of XBiotech shares are owned by institutional investors. Comparatively, 42.9% of Spring Bank Pharmaceuticals shares are owned by institutional investors. 33.4% of XBiotech shares are owned by insiders. Comparatively, 15.6% of Spring Bank Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

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

Analyst Recommendations

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

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

XBiotech presently has a consensus target price of $13.00, suggesting a potential upside of 74.50%. Spring Bank Pharmaceuticals has a consensus target price of $26.75, suggesting a potential upside of 582.40%. Given Spring Bank Pharmaceuticals’ higher possible upside, analysts plainly believe Spring Bank Pharmaceuticals is more favorable than XBiotech.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
XBiotech N/A N/A -$21.14 million ($0.59) -12.63
Spring Bank Pharmaceuticals $350,000.00 184.13 -$22.85 million ($1.87) -2.10

XBiotech has higher earnings, but lower revenue than Spring Bank Pharmaceuticals. XBiotech is trading at a lower price-to-earnings ratio than Spring Bank Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Summary

Spring Bank Pharmaceuticals beats XBiotech on 8 of the 11 factors compared between the two stocks.

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.

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.



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