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 businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.
Institutional & 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. 12.7% of Spring Bank Pharmaceuticals shares are held by company insiders. Comparatively, 33.4% of XBiotech shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
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%|
This is a summary of recent ratings and target prices 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|
Spring Bank Pharmaceuticals presently has a consensus target price of $23.00, suggesting a potential upside of 396.76%. XBiotech has a consensus target price of $13.00, suggesting a potential upside of 66.03%. Given Spring Bank Pharmaceuticals’ higher probable upside, analysts plainly believe Spring Bank Pharmaceuticals is more favorable than XBiotech.
Volatility & Risk
Spring Bank Pharmaceuticals has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, XBiotech has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.
Earnings & Valuation
This table compares Spring Bank Pharmaceuticals and XBiotech’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Spring Bank Pharmaceuticals||$350,000.00||217.52||-$22.85 million||($1.87)||-2.48|
XBiotech has lower revenue, but higher earnings 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.
Spring Bank Pharmaceuticals beats XBiotech on 7 of the 11 factors compared between the two stocks.
About Spring Bank Pharmaceuticals
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 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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