KALA BIO (NASDAQ:KALA) and Procaps Group (NASDAQ:PROC) Head to Head Contrast

Procaps Group (NASDAQ:PROC) and KALA BIO (NASDAQ:KALA) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Procaps Group and KALA BIO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procaps Group	0	0	0	0	0.00
KALA BIO	0	0	2	0	3.00

KALA BIO has a consensus target price of $15.00, suggesting a potential upside of 125.56%. Given KALA BIO’s stronger consensus rating and higher probable upside, analysts clearly believe KALA BIO is more favorable than Procaps Group.

Valuation and Earnings

This table compares Procaps Group and KALA BIO”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procaps Group	$409.92 million	N/A	$42.54 million	$0.52	4.02
KALA BIO	$3.89 million	7.88	-$42.20 million	($12.47)	-0.53

Procaps Group has higher revenue and earnings than KALA BIO. KALA BIO is trading at a lower price-to-earnings ratio than Procaps Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Procaps Group and KALA BIO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Procaps Group	N/A	N/A	N/A
KALA BIO	N/A	-448.61%	-69.37%

Risk and Volatility

Procaps Group has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500. Comparatively, KALA BIO has a beta of -2.13, meaning that its share price is 313% less volatile than the S&P 500.

Insider and Institutional Ownership

24.6% of KALA BIO shares are owned by institutional investors. 19.9% of Procaps Group shares are owned by insiders. Comparatively, 8.3% of KALA BIO shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Procaps Group beats KALA BIO on 8 of the 12 factors compared between the two stocks.

About Procaps Group

Procaps Group S.A. develops, produces, and markets pharmaceutical solutions worldwide. The company formulates, manufactures, and markets branded prescription drugs in various therapeutic areas, including feminine care products, pain relief, skin care, digestive health, growth and development, cardiology, vision care, central nervous system, and respiratory. It also provides drugs for hospital use, such as antibiotic, blood clot, personal protective equipment, immunosuppressant, oncology, and analgesics products. In addition, the company offers over-the-counter (OTC) consumer healthcare products through a portfolio on approximately eight therapeutic areas, including gastrointestinal, skin care, cough and cold, analgesics, urological, vitamins, minerals, and supplements in the categories of antibiotics, anti-infective, anti-parasitic, cardiovascular, feminine care, cutaneous antimycotic, pain killers, gastro intestinal, hormonals, metabolic, endocrine, nervous system, ophthalmic, osteoarticular, respiratory, diet supplements, and vitamins and minerals. Further, it provides blood glucose meters, telemonitoring products, oral anti-diabetics products, cosmeceuticals, insulin delivery systems, and other diabetes solutions; and contract drug development and manufacturing services to third party pharmaceutical companies, specializing in soft gelatin capsule technologies. The company was founded in 1977 and is based in Luxembourg, Luxembourg.

About KALA BIO

KALA BIO, Inc., a clinical-stage biopharmaceutical company, engages in the research, development, and commercialization of innovative therapies for rare and severe eye diseases in the United States. The company's product candidates include KPI-012, which is in Phase 2b clinical trial for the treatment of persistent corneal epithelial defects. Its preclinical development product, including KPI-014 for the treatment of rare inherited retinal diseases. The company was formerly known as Kala Pharmaceuticals, Inc. and changed its name to KALA BIO, Inc. in August 2023. KALA BIO, Inc. was incorporated in 2009 and is headquartered in Arlington, Massachusetts.