Contrasting Calithera Biosciences (NASDAQ:CALA) and Nektar Therapeutics (NASDAQ:NKTR)

Calithera Biosciences (NASDAQ:CALA) and Nektar Therapeutics (NASDAQ:NKTR) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

63.3% of Calithera Biosciences shares are owned by institutional investors. Comparatively, 93.3% of Nektar Therapeutics shares are owned by institutional investors. 17.2% of Calithera Biosciences shares are owned by insiders. Comparatively, 4.0% of Nektar Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Calithera Biosciences and Nektar Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Calithera Biosciences 0 1 1 0 2.50
Nektar Therapeutics 1 8 5 0 2.29

Calithera Biosciences currently has a consensus price target of $8.00, suggesting a potential upside of 129.23%. Nektar Therapeutics has a consensus price target of $30.08, suggesting a potential upside of 53.06%. Given Calithera Biosciences’ stronger consensus rating and higher probable upside, analysts plainly believe Calithera Biosciences is more favorable than Nektar Therapeutics.

Valuation & Earnings

This table compares Calithera Biosciences and Nektar Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Calithera Biosciences $22.25 million 8.43 -$54.63 million ($1.49) -2.34
Nektar Therapeutics $1.19 billion 2.90 $681.31 million $3.78 5.20

Nektar Therapeutics has higher revenue and earnings than Calithera Biosciences. Calithera Biosciences is trading at a lower price-to-earnings ratio than Nektar Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Calithera Biosciences and Nektar Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Calithera Biosciences N/A -70.66% -59.61%
Nektar Therapeutics -352.83% -26.60% -20.01%

Risk and Volatility

Calithera Biosciences has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500. Comparatively, Nektar Therapeutics has a beta of 2.62, indicating that its share price is 162% more volatile than the S&P 500.

Summary

Nektar Therapeutics beats Calithera Biosciences on 9 of the 14 factors compared between the two stocks.

Calithera Biosciences Company Profile

Calithera Biosciences, Inc., a clinical-stage bio-pharmaceutical company, focuses on the discovery and development of small molecule drugs directed against tumor metabolism and tumor immunology targets for the treatment of cancer in the United States. Its lead product candidate is CB-839, an inhibitor of glutaminase, which is in Phase II clinical trial to treat solid tumors. The company also offers INCB001158, an oral inhibitor of arginase that is in Phase I/II clinical trial for the treatment of hematology and oncology. The company is also developing CB-280, an oral arginase inhibitor for the treatment of cystic fibrosis; and CB-708, an orally administered small molecule inhibitor of CD73. It has a license agreement with Mars, Inc. to develop and commercialize Symbioscience's portfolio of arginase inhibitors for use in human healthcare. The company also has clinical trial collaboration with Bristol-Myers Squibb Company to evaluate nivolumab in combination with CB-839. In addition, it has a collaboration and license agreement with Incyte Corporation for the research, development, and commercialization of INCB001158, a small molecule arginase inhibitor for the treatment of hematology and oncology. Calithera Biosciences, Inc. was founded in 2010 and is headquartered in South San Francisco, California.

Nektar Therapeutics Company Profile

Nektar Therapeutics, a biopharmaceutical company, develops drug candidates for cancer, auto-immune disease, and chronic pain in the United States. The company develops NKTR-181, an orally-available mu-opioid analgesic molecule, which is in Phase III clinical trial for moderate to severe chronic pain; ONZEALD, a topoisomerase I inhibitor that is in Phase III clinical trial for advanced metastatic breast cancer in patients with brain metastases; and NKTR-214, a CD122-preferential interleukin-2 (IL-2) pathway agonist, which is in Phase I to treat immuno-oncology. It also develops NKTR-358, cytokine Treg stimulant, which is in Phase I to treat autoimmune diseases; NKTR-262, a toll-like receptor agonist that is in Phase I for solid tumors; and NKTR-255, which is in preclinical stage for immuno-oncology. In addition, the is developing ADYNOVATE and ADYNOVI for hemophilia A; MOVANTIK for opioid-induced constipation in adult patients with chronic non-cancer pain, and who have an inadequate response to laxatives; CIMZIA for crohn's disease, rheumatoid arthritis, and psoriasis/ankylosing spondylitis; and MIRCERA for anemia associated with chronic kidney disease. Further, it is developing Macugen for age-related macular degeneration; Somavert for acromegaly; Neulasta for neutropenia; Dapirolizumab Pegol for systemic lupus erythematosus; PEGPH20 for pancreatic, non-small cell lung cancer, and other tumor types; and longer-acting blood clotting proteins for hemophilia. The company has collaboration agreement with Takeda Pharmaceutical Company Ltd.; AstraZeneca AB; UCB Pharma S.A.; F. Hoffmann-La Roche Ltd; Bausch Health Companies Inc.; Pfizer Inc.; Amgen Inc.; UCB Pharma (Biogen); Halozyme Therapeutics, Inc.; Bristol-Myers Squibb Company; Baxalta Incorporated; and Eli Lilly and Company, as well as with Merck KGaA and Pfizer Inc to develop a therapy for treating pancreatic cancer. Nektar Therapeutics was founded in 1990 and is headquartered in San Francisco, California.

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