Pharming Group (NASDAQ:PHAR – Get Free Report) and Fate Therapeutics (NASDAQ:FATE – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
Profitability
This table compares Pharming Group and Fate Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pharming Group | 2.51% | 3.40% | 1.90% |
| Fate Therapeutics | -1,941.09% | -65.08% | -41.73% |
Volatility & Risk
Pharming Group has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500. Comparatively, Fate Therapeutics has a beta of 2.52, meaning that its stock price is 152% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Pharming Group and Fate Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pharming Group | 2 | 0 | 3 | 0 | 2.20 |
| Fate Therapeutics | 1 | 3 | 4 | 0 | 2.38 |
Pharming Group currently has a consensus target price of $38.67, suggesting a potential upside of 246.94%. Fate Therapeutics has a consensus target price of $5.90, suggesting a potential upside of 180.29%. Given Pharming Group’s higher probable upside, equities analysts clearly believe Pharming Group is more favorable than Fate Therapeutics.
Institutional and Insider Ownership
0.0% of Pharming Group shares are owned by institutional investors. Comparatively, 97.5% of Fate Therapeutics shares are owned by institutional investors. 2.1% of Pharming Group shares are owned by insiders. Comparatively, 4.7% of Fate Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Pharming Group and Fate Therapeutics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pharming Group | $376.13 million | 2.10 | $2.85 million | $0.12 | 92.88 |
| Fate Therapeutics | $6.65 million | 37.93 | -$136.32 million | ($1.05) | -2.00 |
Pharming Group has higher revenue and earnings than Fate Therapeutics. Fate Therapeutics is trading at a lower price-to-earnings ratio than Pharming Group, indicating that it is currently the more affordable of the two stocks.
Summary
Pharming Group beats Fate Therapeutics on 8 of the 14 factors compared between the two stocks.
About Pharming Group
Pharming Group N.V., a biopharmaceutical company, develops and commercializes protein replacement therapies and precision medicines for the treatment of rare diseases in the United States, Europe, and internationally. The company offers RUCONEST, a recombinant C1 esterase inhibitor for the treatment of acute attacks in adult and adolescent patients with acute hereditary angioedema (HAE); and Joenja (leniolisib), an oral small molecule PI3K? inhibitor for the treatment of activated phosphoinositide 3-kinase delta syndrome. It also develops OTL-105, an investigational ex-vivo autologous hematopoietic stem cell gene therapy for the treatment of HAE. The company has a development collaboration and license agreement with Novartis; and a strategic collaboration agreement with Orchard Therapeutics plc for research, development, manufacturing, and commercialization of OTL-105. Pharming Group N.V. was incorporated in 1988 and is headquartered in Leiden, the Netherlands.
About Fate Therapeutics
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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