Mereo BioPharma Group (NASDAQ:MREO) and Krystal Biotech (NASDAQ:KRYS) Head-To-Head Survey

Krystal Biotech (NASDAQ:KRYS) and Mereo BioPharma Group (NASDAQ:MREO) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Volatility and Risk

Krystal Biotech has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Mereo BioPharma Group has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.

Institutional & Insider Ownership

86.3% of Krystal Biotech shares are held by institutional investors. Comparatively, 62.8% of Mereo BioPharma Group shares are held by institutional investors. 13.7% of Krystal Biotech shares are held by insiders. Comparatively, 5.5% of Mereo BioPharma Group shares are held 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.

Profitability

This table compares Krystal Biotech and Mereo BioPharma Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Krystal Biotech	52.64%	18.69%	17.12%
Mereo BioPharma Group	N/A	-83.02%	-72.68%

Analyst Ratings

This is a summary of recent ratings and target prices for Krystal Biotech and Mereo BioPharma Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Krystal Biotech	0	1	9	0	2.90
Mereo BioPharma Group	1	4	3	0	2.25

Krystal Biotech currently has a consensus target price of $326.25, indicating a potential upside of 32.04%. Mereo BioPharma Group has a consensus target price of $3.25, indicating a potential upside of 867.26%. Given Mereo BioPharma Group’s higher possible upside, analysts clearly believe Mereo BioPharma Group is more favorable than Krystal Biotech.

Valuation & Earnings

This table compares Krystal Biotech and Mereo BioPharma Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Krystal Biotech	$389.13 million	18.56	$204.83 million	$6.85	36.07
Mereo BioPharma Group	$500,000.00	106.94	-$41.88 million	($0.06)	-5.60

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

Summary

Krystal Biotech beats Mereo BioPharma Group on 12 of the 14 factors compared between the two stocks.

About Krystal Biotech

Krystal Biotech, Inc., a commercial-stage biotechnology company, discovers, develops, and commercializes genetic medicines for patients with rare diseases in the United States. It commercializes VYJUVEK (beremagene geperpavec-svdt, or B-VEC) for the treatment of dystrophic epidermolysis bullosa (DEB). The company also develops KB105, which is in Phase 1/2 clinical trials for treating patients with deficient autosomal recessive congenital ichthyosis; KB104 for treating netherton syndrome; KB407 that is in Phase 1 clinical trials for treating cystic fibrosis; KB707 that is in Phase 1 clinical trials for the treatment of anti-PD-1 relapsed/refractory; KB408, which is in Phase 1 clinical trials for treating Alpha-1 antitrypsin deficiency; and KB301 that is in Phase 2 clinical trials for treating aesthetic skin conditions, as well as in open label study with ophthalmic B-VEC for treating for ocular complications of deb. Krystal Biotech, Inc. was founded in 2016 and is headquartered in Pittsburgh, Pennsylvania.

About Mereo BioPharma Group

Mereo BioPharma Group plc, a biopharmaceutical company, develops and commercializes therapeutics for the treatment of oncology and rare diseases in the United Kingdom, the United States, and internationally. It develops Etigilimab (MPH-313), an antibody T-cell immunoreceptor with Ig and ITIM domains, which is in Phase 1b clinical trial for the treatment of tumors. The company is also developing Navicixizumab (OMP-305B83), which has completed Phase 1b clinical trials for the treatment of the late line ovarian cancer; Acumapimod (BCT-197), a p38 MAP kinase inhibitor that is in Phase II clinical trials to treat acute exacerbations of chronic obstructive pulmonary disease; and Leflutrozole (BGS-649), an oral aromatase inhibitor for the treatment of hypogonadotropic hypogonadism which is in Phase 2 trials. In addition, it develops rare disease product candidates, including Setrusumab (BPS-804), an antibody for the treatment of osteogenesis imperfecta; and Alvelestat (MPH-966), an oral small molecule that is in Phase II clinical trial to treat Alpha-1 anti-trypsin deficiency. The company has a license agreement with Feng Biosciences for the development and commercialization of navicixizumab; license agreement with ReproNovo for the development and commercialization of leflutrozole; licensing agreement with AstraZeneca; and license agreement with Ultragenyx Pharmaceutical Inc. to develop and commercialize setrusumab. Mereo BioPharma Group plc was incorporated in 2015 and is headquartered in London, the United Kingdom.