Keros Therapeutics (NASDAQ:KROS) versus Climb Bio (NASDAQ:CLYM) Critical Contrast

Climb Bio (NASDAQ:CLYM) and Keros Therapeutics (NASDAQ:KROS) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for Climb Bio and Keros Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Climb Bio	1	0	4	1	2.83
Keros Therapeutics	1	4	5	0	2.40

Climb Bio presently has a consensus price target of $9.50, suggesting a potential upside of 104.30%. Keros Therapeutics has a consensus price target of $22.29, suggesting a potential upside of 29.27%. Given Climb Bio’s stronger consensus rating and higher possible upside, analysts clearly believe Climb Bio is more favorable than Keros Therapeutics.

Profitability

This table compares Climb Bio and Keros Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Climb Bio	N/A	-26.43%	-25.61%
Keros Therapeutics	26.12%	9.51%	8.89%

Insider & Institutional Ownership

69.8% of Climb Bio shares are owned by institutional investors. Comparatively, 71.6% of Keros Therapeutics shares are owned by institutional investors. 0.8% of Climb Bio shares are owned by insiders. Comparatively, 20.6% of Keros Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Climb Bio has a beta of -0.15, indicating that its stock price is 115% less volatile than the S&P 500. Comparatively, Keros Therapeutics has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Valuation and Earnings

This table compares Climb Bio and Keros Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Climb Bio	N/A	N/A	-$73.90 million	($0.76)	-6.12
Keros Therapeutics	$246.72 million	2.13	-$187.35 million	$1.54	11.19

Climb Bio has higher earnings, but lower revenue than Keros Therapeutics. Climb Bio is trading at a lower price-to-earnings ratio than Keros Therapeutics, indicating that it is currently the more affordable of the two stocks.

Summary

Keros Therapeutics beats Climb Bio on 10 of the 14 factors compared between the two stocks.

About Climb Bio

Climb Bio Inc. is a clinical-stage biotechnology company developing therapeutics for patients with immune-mediated diseases. The Company’s lead product candidate, budoprutug, is an anti-CD19 monoclonal antibody which has demonstrated B-cell depletion and has potential to treat a broad range of B-cell mediated diseases. Climb Bio Inc., formerly known as Eliem Therapeutics Inc., is based in WELLESLEY, Mass.

About Keros Therapeutics

Keros Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops and commercializes novel therapeutics for patients with disorders that are linked to dysfunctional signaling of the transforming growth factor-beta family of proteins in the United States. The company's lead product candidate is KER-050, which is being developed for the treatment of low blood cell counts, or cytopenias, including anemia and thrombocytopenia in patients with myelodysplastic syndromes, as well as in patients with myelofibrosis. It also develops KER-012, which is in Phase II clinical trial to treat pulmonary arterial hypertension and cardiovascular disorders; and KER-065 that is in Phase I clinical trial for the treatment of obesity and neuromuscular diseases. In addition, the company has collaboration and license agreement with Hansoh (Shanghai) Healthtech Co., Ltd. to develop, manufacture, and commercialize KER-050 and licensed products containing KER-050. Keros Therapeutics, Inc. was incorporated in 2015 and is headquartered in Lexington, Massachusetts.