Fate Therapeutics (NASDAQ:FATE) and Syndax Pharmaceuticals (NASDAQ:SNDX) Financial Review

Syndax Pharmaceuticals (NASDAQ:SNDX – Get Free Report) and Fate Therapeutics (NASDAQ:FATE – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Risk and Volatility

Syndax Pharmaceuticals has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, Fate Therapeutics has a beta of 2.54, meaning that its stock price is 154% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Syndax Pharmaceuticals and Fate Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Syndax Pharmaceuticals 1 0 10 0 2.82
Fate Therapeutics 1 3 4 0 2.38

Syndax Pharmaceuticals presently has a consensus price target of $42.30, suggesting a potential upside of 132.42%. Fate Therapeutics has a consensus price target of $5.90, suggesting a potential upside of 151.06%. Given Fate Therapeutics’ higher probable upside, analysts clearly believe Fate Therapeutics is more favorable than Syndax Pharmaceuticals.

Earnings & Valuation

This table compares Syndax Pharmaceuticals and Fate Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Syndax Pharmaceuticals $172.35 million 9.36 -$285.42 million ($2.51) -7.25
Fate Therapeutics $6.65 million 42.34 -$136.32 million ($1.05) -2.24

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

Profitability

This table compares Syndax Pharmaceuticals and Fate Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Syndax Pharmaceuticals -87.52% -372.94% -39.11%
Fate Therapeutics -1,941.09% -65.08% -41.73%

Institutional and Insider Ownership

97.5% of Fate Therapeutics shares are held by institutional investors. 4.8% of Syndax Pharmaceuticals shares are held by insiders. Comparatively, 4.7% of Fate Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Fate Therapeutics beats Syndax Pharmaceuticals on 8 of the 14 factors compared between the two stocks.

About Syndax Pharmaceuticals

(Get Free Report)

Syndax Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops therapies for the treatment of cancer. Its lead product candidates are revumenib, a potent, selective, small molecule inhibitor of the menin-MLL binding interaction for the treatment of KMT2A rearranged, acute leukemias, and solid tumor; and SNDX-6352 or axatilimab, a monoclonal antibody that blocks the colony stimulating factor 1, or CSF-1 receptor for the treatment of patients with chronic graft versus host disease (cGVHD) and idiopathic pulmonary fibrosis (IPF). The company is also developing Entinostat. It has an agreement with Eddingpharm International Company Limited for licensing, development, and commercialization of Entinostat. Syndax Pharmaceuticals, Inc. was incorporated in 2005 and is headquartered in Waltham, Massachusetts.

About Fate Therapeutics

(Get Free Report)

Fate Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops programmed cellular immunotherapies for cancer and immune disorders worldwide. The company's chimeric antigen receptor (CAR)-targeted NK and T-cell product candidates include FT576 to treat multiple myeloma, and FT522, to treat lymphoma and autoimmune disorders. Its CAR T-cell programs include FT819 to treat hematologic malignancies and solid tumors, and FT825 to treat solid tumors. The company has a collaboration and option agreement with Ono Pharmaceutical Co. Ltd. for the development and commercialization of off-the-shelf, iPSC-derived CAR T-cell product candidates for the treatment of cancer. Fate Therapeutics, Inc. was incorporated in 2007 and is headquartered in San Diego, California.

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