Grifols (NASDAQ:GRFS – Get Free Report) and Fate Therapeutics (NASDAQ:FATE – Get Free Report) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.
Volatility & Risk
Grifols has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Fate Therapeutics has a beta of 2.65, indicating that its share price is 165% more volatile than the S&P 500.
Earnings & Valuation
This table compares Grifols and Fate Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grifols | $8.51 billion | 0.70 | $454.82 million | $0.19 | 46.11 |
| Fate Therapeutics | $6.65 million | 31.89 | -$136.32 million | ($1.03) | -1.72 |
Grifols has higher revenue and earnings than Fate Therapeutics. Fate Therapeutics is trading at a lower price-to-earnings ratio than Grifols, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
97.5% of Fate Therapeutics shares are owned by institutional investors. 0.2% of Grifols shares are owned by company insiders. Comparatively, 4.7% of Fate Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations for Grifols and Fate Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grifols | 1 | 2 | 0 | 0 | 1.67 |
| Fate Therapeutics | 1 | 1 | 4 | 0 | 2.50 |
Grifols presently has a consensus price target of $9.00, indicating a potential upside of 2.74%. Fate Therapeutics has a consensus price target of $5.80, indicating a potential upside of 227.68%. Given Fate Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Fate Therapeutics is more favorable than Grifols.
Profitability
This table compares Grifols and Fate Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grifols | 5.54% | 6.21% | 2.39% |
| Fate Therapeutics | -1,941.09% | -65.08% | -41.73% |
About Grifols
Grifols is a global healthcare company headquartered in Barcelona, Spain, focused on developing and producing plasma-derived medicines and other healthcare products. Founded in 1909, the company has expanded from its origins in laboratory services into a business spanning plasma collection, biopharmaceuticals, diagnostics and hospital solutions. Its biopharmaceutical business collects and processes human plasma to make medicines, including immunoglobulins, albumin and coagulation factors. Grifols also supplies diagnostic products and services for transfusion medicine and offers products used in hospitals and clinical laboratories.
About Fate Therapeutics
Fate Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on developing cellular immunotherapies for cancer and autoimmune diseases. The company uses induced pluripotent stem cell (iPSC) technology to create standardized, potentially off-the-shelf immune cell products, including natural killer (NK) cells and T cells. Its research and development activities include iPSC-derived cell therapies engineered to recognize and attack cancer cells. Fate’s pipeline has included candidates such as FT819, an iPSC-derived, CD19-targeted CAR T-cell therapy, along with other investigational NK-cell and T-cell programs.
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