Fate Therapeutics (NASDAQ:FATE – Get Free Report) and Protara Therapeutics (NASDAQ:TARA – Get Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.
Profitability
This table compares Fate Therapeutics and Protara Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fate Therapeutics | -2,933.79% | -46.49% | -34.48% |
| Protara Therapeutics | N/A | -58.80% | -51.37% |
Valuation & Earnings
This table compares Fate Therapeutics and Protara Therapeutics’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fate Therapeutics | $63.53 million | 6.40 | -$160.93 million | ($1.92) | -1.86 |
| Protara Therapeutics | N/A | N/A | -$40.42 million | ($3.74) | -0.68 |
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Fate Therapeutics and Protara Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fate Therapeutics | 1 | 9 | 4 | 0 | 2.21 |
| Protara Therapeutics | 0 | 0 | 2 | 0 | 3.00 |
Fate Therapeutics currently has a consensus target price of $6.75, indicating a potential upside of 89.08%. Protara Therapeutics has a consensus target price of $26.50, indicating a potential upside of 939.22%. Given Protara Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Protara Therapeutics is more favorable than Fate Therapeutics.
Volatility & Risk
Fate Therapeutics has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500. Comparatively, Protara Therapeutics has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500.
Insider & Institutional Ownership
97.5% of Fate Therapeutics shares are owned by institutional investors. Comparatively, 38.1% of Protara Therapeutics shares are owned by institutional investors. 5.0% of Fate Therapeutics shares are owned by insiders. Comparatively, 12.5% of Protara Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Fate Therapeutics beats Protara Therapeutics on 7 of the 13 factors compared between the two stocks.
About Fate Therapeutics
Fate Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops programmed cellular immunotherapies for cancer and immune disorders worldwide. The company's chimeric antigen receptor (CAR)-targeted NK and T-cell product candidates include FT576 to treat multiple myeloma, and FT522, to treat lymphoma and autoimmune disorders. Its CAR T-cell programs include FT819 to treat hematologic malignancies and solid tumors, and FT825 to treat solid tumors. The company has a collaboration and option agreement with Ono Pharmaceutical Co. Ltd. for the development and commercialization of off-the-shelf, iPSC-derived CAR T-cell product candidates for the treatment of cancer. Fate Therapeutics, Inc. was incorporated in 2007 and is headquartered in San Diego, California.
About Protara Therapeutics
Protara Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in advancing transformative therapies for the treatment of cancer and rare diseases. The company's lead program is TARA-002, an investigational cell therapy, which is in Phase II clinical trial for the treatment of non-muscle invasive bladder cancer and lymphatic malformations. It is also developing intravenous choline chloride, an investigational phospholipid substrate replacement therapy that is in Phase II clinical trial for patients receiving parenteral nutrition. The company is headquartered in New York, New York.
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