Head to Head Analysis: Krystal Biotech (NASDAQ:KRYS) and Ayala Pharmaceuticals (NASDAQ:AYLA)

Krystal Biotech (NASDAQ:KRYS) and Ayala Pharmaceuticals (NASDAQ:AYLA) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.

Institutional & Insider Ownership

73.8% of Krystal Biotech shares are held by institutional investors. Comparatively, 15.5% of Ayala Pharmaceuticals shares are held by institutional investors. 27.4% of Krystal Biotech shares are held by insiders. Comparatively, 2.9% of Ayala Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Krystal Biotech and Ayala Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Krystal Biotech N/A N/A -$32.17 million ($1.71) -32.92
Ayala Pharmaceuticals $3.71 million 40.26 -$30.15 million ($3.06) -3.69

Ayala Pharmaceuticals has higher revenue and earnings than Krystal Biotech. Krystal Biotech is trading at a lower price-to-earnings ratio than Ayala Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Krystal Biotech has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Ayala Pharmaceuticals has a beta of -0.69, meaning that its stock price is 169% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Krystal Biotech and Ayala Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Krystal Biotech 0 0 6 0 3.00
Ayala Pharmaceuticals 0 0 4 0 3.00

Krystal Biotech presently has a consensus price target of $97.50, suggesting a potential upside of 73.21%. Ayala Pharmaceuticals has a consensus price target of $25.75, suggesting a potential upside of 128.28%. Given Ayala Pharmaceuticals’ higher possible upside, analysts plainly believe Ayala Pharmaceuticals is more favorable than Krystal Biotech.

Profitability

This table compares Krystal Biotech and Ayala Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Krystal Biotech N/A -14.46% -13.83%
Ayala Pharmaceuticals -1,096.41% -82.25% -72.00%

Summary

Krystal Biotech beats Ayala Pharmaceuticals on 8 of the 12 factors compared between the two stocks.

Krystal Biotech Company Profile

Krystal Biotech, Inc. is a gene therapy company, which engages in developing and commercializing treatment for patients suffering from dermatological diseases. It developed a gene therapy platform, which company refer to as the Skin TARgeted Delivery platform, or STAR-D platform, that consists of a patent pending engineered viral vector based on herpes simplex virus 1, or HSV-1, and skin-optimized gene transfer technology, to develop off-the-shelf treatments for dermatological diseases. The company was founded by Suma M. Krishnan on April 15, 2016 and is headquartered in Pittsburgh, PA.

Ayala Pharmaceuticals Company Profile

Ayala Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on developing and commercializing small molecule therapeutics for patients suffering from rare and aggressive cancers. The company's lead product candidate is AL101, which is an intravenous injectable small molecule gamma secretase inhibitor (GSI) that is in Phase II clinical trial for the treatment of recurrent/metastatic adenoid cystic carcinoma for patients bearing Notch-activating mutations. It is also involved in developing AL102, an oral injectable small molecule GSI that is in Phase I clinical trial for the treatment of desmoid tumors. Ayala Pharmaceuticals, Inc. has a collaboration agreement with Novartis International Pharmaceutical Limited to develop AL102 for the treatment of multiple myeloma. The company was incorporated in 2017 and is headquartered in Rehovot, Israel.

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