Fortress Biotech (NASDAQ: FBIO) and Sinovac Biotech (NASDAQ:SVA) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

12.0% of Fortress Biotech shares are owned by institutional investors. Comparatively, 30.7% of Sinovac Biotech shares are owned by institutional investors. 31.5% of Fortress Biotech shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Fortress Biotech and Sinovac Biotech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fortress Biotech -53.95% -54.88% -30.67%
Sinovac Biotech N/A N/A N/A

Analyst Ratings

This is a summary of recent recommendations for Fortress Biotech and Sinovac Biotech, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fortress Biotech 0 0 5 0 3.00
Sinovac Biotech 0 0 0 0 N/A

Fortress Biotech presently has a consensus price target of $10.60, suggesting a potential upside of 120.37%. Given Fortress Biotech’s higher probable upside, equities research analysts clearly believe Fortress Biotech is more favorable than Sinovac Biotech.

Risk and Volatility

Fortress Biotech has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Sinovac Biotech has a beta of 0.03, indicating that its stock price is 97% less volatile than the S&P 500.

Earnings and Valuation

This table compares Fortress Biotech and Sinovac Biotech’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fortress Biotech $108.97 million 2.23 -$71.48 million ($1.48) -3.25
Sinovac Biotech $64.02 million 6.13 -$837,000.00 ($0.08) -86.11

Sinovac Biotech has higher revenue, but lower earnings than Fortress Biotech. Sinovac Biotech is trading at a lower price-to-earnings ratio than Fortress Biotech, indicating that it is currently the more affordable of the two stocks.

Summary

Sinovac Biotech beats Fortress Biotech on 7 of the 12 factors compared between the two stocks.

About Fortress Biotech

Fortress Biotech, Inc., formerly Coronado Biosciences, Inc., is a biopharmaceutical company. The Company is involved in the development of immunotherapy agents for the treatment of autoimmune diseases and cancer. Its sole product candidate is CNDO-109. The Company is also focused on acquiring, developing and commercializing pharmaceutical and biotechnology products. The Company’s product, CNDO-109, is a lysate (disrupted Closteroviridae (CTV)-1 cells, cell membrane fragments, cell proteins and other cellular components) that activates donor Natural Killer (NK) cells. CTV-1 is a leukemic cell line re-classified as a T-cell acute lymphocytic leukemia (ALL). The Company holds the license to develop and commercialize CNDO-109 to activate NK cells for the treatment of cancer-related and other conditions, and a non-exclusive license to certain clinical data solely for use in the Investigational new drug (IND) for CNDO-109. The Company is conducting the Phase I clinical studies of CNDO-109.

About Sinovac Biotech

Sinovac Biotech Ltd. (Sinovac) is a holding company. The Company is a biopharmaceutical company that focuses on the research, development, manufacturing and commercialization of vaccines that protect against human infectious diseases, including hepatitis A, hepatitis B, seasonal influenza, Haemagglutinase5 Neuraminidase1 (H5N1) and Influenza A (H1N1) pandemic influenza and mumps. The Company’s pipeline consists of vaccine candidates in the clinical and pre-clinical development Phases in China. The Company is engaged in the sales, marketing, manufacturing and development of vaccines for infectious disease. The Company develops various products, including Healive, Bilive, Anflu, Panflu Whole Viron Pandemic Influenza Vaccine, Split Viron Pandemic Influenza Vaccine, Panflu.1, RabEnd, Mumps Vaccine, Enterovirus 71 (EV71) Vaccine, Pneumococcal Polysaccharide Vaccine, Pneumococcal Conjugate Vaccine, Rubella Vaccine, Varicella Vaccine and Sabin Inactivated Polio Vaccine.

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