Fennec Pharmaceuticals (NASDAQ:FENC – Get Free Report) and Kodiak Sciences (NASDAQ:KOD – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.
Analyst Recommendations
This is a summary of current ratings for Fennec Pharmaceuticals and Kodiak Sciences, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fennec Pharmaceuticals | 0 | 0 | 3 | 0 | 3.00 |
| Kodiak Sciences | 2 | 2 | 1 | 0 | 1.80 |
Fennec Pharmaceuticals currently has a consensus target price of $14.00, suggesting a potential upside of 201.08%. Kodiak Sciences has a consensus target price of $5.00, suggesting a potential upside of 73.61%. Given Fennec Pharmaceuticals’ stronger consensus rating and higher probable upside, research analysts clearly believe Fennec Pharmaceuticals is more favorable than Kodiak Sciences.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fennec Pharmaceuticals | $48.89 million | 2.60 | -$16.05 million | $0.03 | 155.00 |
| Kodiak Sciences | N/A | N/A | -$260.49 million | ($4.43) | -0.65 |
Fennec Pharmaceuticals has higher revenue and earnings than Kodiak Sciences. Kodiak Sciences is trading at a lower price-to-earnings ratio than Fennec Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Fennec Pharmaceuticals has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500. Comparatively, Kodiak Sciences has a beta of 2.34, meaning that its share price is 134% more volatile than the S&P 500.
Insider and Institutional Ownership
55.5% of Fennec Pharmaceuticals shares are owned by institutional investors. Comparatively, 89.1% of Kodiak Sciences shares are owned by institutional investors. 11.0% of Fennec Pharmaceuticals shares are owned by company insiders. Comparatively, 45.3% of Kodiak Sciences shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Fennec Pharmaceuticals and Kodiak Sciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fennec Pharmaceuticals | 5.59% | -53.38% | 6.14% |
| Kodiak Sciences | N/A | -77.23% | -42.44% |
Summary
Fennec Pharmaceuticals beats Kodiak Sciences on 10 of the 13 factors compared between the two stocks.
About Fennec Pharmaceuticals
Fennec Pharmaceuticals Inc., a biopharmaceutical company, develops product candidates for use in the treatment of cancer in the United States. Its lead product candidate is the Sodium Thiosulfate, which has completed the Phase III clinical trial for the prevention of cisplatin induced hearing loss or ototoxicity in children. The company was formerly known as Adherex Technologies Inc. and changed its name to Fennec Pharmaceuticals Inc. in September 2014. Fennec Pharmaceuticals Inc. was founded in 1996 and is based in Research Triangle Park, North Carolina.
About Kodiak Sciences
Kodiak Sciences Inc., a clinical stage biopharmaceutical company, researches, develops, and commercializes therapeutics to treat retinal diseases. Its lead product candidate is tarcocimab tedromer (KSI-301), an anti-vascular endothelial growth factor antibody biopolymer that is in Phase IIb/III clinical study to treat wet age-related macular degeneration (AMD), as well as Phase III clinical study for the treatment of diabetic macular edema, naïve macular edema due to retinal vein occlusion, and non-proliferative diabetic retinopathy. The company's preclinical stage product candidate includes KSI-501, a bispecific conjugate to treat retinal diseases with an inflammatory component; and KSI-601, a triplet biopolymer conjugate for the treatment of dry AMD. The company was formerly known as Oligasis, LLC and changed its name to Kodiak Sciences Inc. in September 2015. Kodiak Sciences Inc. was incorporated in 2009 and is based in Palo Alto, California.
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