Forte Biosciences (NASDAQ:FBRX) and Kiniksa Pharmaceuticals (NASDAQ:KNSA) Critical Comparison

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

Analyst Recommendations

This is a summary of recent recommendations for Forte Biosciences and Kiniksa Pharmaceuticals, as provided by MarketBeat.

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

Forte Biosciences presently has a consensus target price of $2.75, indicating a potential upside of 281.94%. Kiniksa Pharmaceuticals has a consensus target price of $30.00, indicating a potential upside of 75.49%. Given Forte Biosciences’ higher possible upside, research analysts clearly believe Forte Biosciences is more favorable than Kiniksa Pharmaceuticals.

Institutional and Insider Ownership

77.6% of Forte Biosciences shares are held by institutional investors. Comparatively, 54.0% of Kiniksa Pharmaceuticals shares are held by institutional investors. 10.5% of Forte Biosciences shares are held by insiders. Comparatively, 54.2% of Kiniksa Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

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

Profitability

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

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

Earnings and Valuation

This table compares Forte Biosciences and Kiniksa Pharmaceuticals’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Forte Biosciences	N/A	N/A	-$31.48 million	($1.04)	-0.69
Kiniksa Pharmaceuticals	$270.26 million	4.47	$14.08 million	$0.18	94.97

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.

Summary

Kiniksa Pharmaceuticals beats Forte Biosciences on 9 of the 12 factors compared between the two stocks.

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.

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.