Aerovate Therapeutics (NASDAQ:AVTE – Get Free Report) and Kronos Bio (NASDAQ:KRON – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.
Earnings and Valuation
This table compares Aerovate Therapeutics and Kronos Bio”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aerovate Therapeutics | N/A | N/A | -$75.52 million | ($2.99) | -0.88 |
| Kronos Bio | $9.86 million | 6.03 | -$112.67 million | ($1.43) | -0.69 |
Aerovate Therapeutics has higher earnings, but lower revenue than Kronos Bio. Aerovate Therapeutics is trading at a lower price-to-earnings ratio than Kronos Bio, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aerovate Therapeutics | 0 | 6 | 0 | 0 | 2.00 |
| Kronos Bio | 0 | 2 | 1 | 0 | 2.33 |
Aerovate Therapeutics presently has a consensus target price of $2.25, suggesting a potential downside of 14.77%. Kronos Bio has a consensus target price of $1.63, suggesting a potential upside of 64.97%. Given Kronos Bio’s stronger consensus rating and higher probable upside, analysts clearly believe Kronos Bio is more favorable than Aerovate Therapeutics.
Profitability
This table compares Aerovate Therapeutics and Kronos Bio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aerovate Therapeutics | N/A | -90.19% | -77.47% |
| Kronos Bio | -867.66% | -64.55% | -48.18% |
Volatility & Risk
Aerovate Therapeutics has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Kronos Bio has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500.
Insider & Institutional Ownership
64.1% of Kronos Bio shares are held by institutional investors. 24.9% of Aerovate Therapeutics shares are held by insiders. Comparatively, 24.4% of Kronos Bio shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Kronos Bio beats Aerovate Therapeutics on 10 of the 13 factors compared between the two stocks.
About Aerovate Therapeutics
Aerovate Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops drugs that enhance the lives of patients with rare cardiopulmonary diseases in the United States. It focuses on advancing AV-101, a dry powder inhaled formulation of imatinib for the treatment of pulmonary arterial hypertension, which is in Phase 2b/Phase 3 trial. The company was incorporated in 2018 and is headquartered in Waltham, Massachusetts.
About Kronos Bio
Kronos Bio, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery and development of therapeutics for various cancer and other serious diseases in the United States. Its lead product candidates are KB-0742, an oral cyclin dependent kinase 9 inhibitor for the treatment of MYC-amplified solid tumors, which is in phase 2 clinical trial; and KB-9558, a core oncogenic transcription factor that drives multiple myeloma. The company was incorporated in 2017 and is headquartered in San Mateo, California.
Receive News & Ratings for Aerovate Therapeutics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Aerovate Therapeutics and related companies with MarketBeat.com's FREE daily email newsletter.
