Critical Survey: Agile Therapeutics (NASDAQ:AGRX) versus Kala Pharmaceuticals (NASDAQ:KALA)

Agile Therapeutics (NASDAQ:AGRX) and Kala Pharmaceuticals (NASDAQ:KALA) are both small-cap 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.

Risk and Volatility

Agile Therapeutics has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Kala Pharmaceuticals has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500.

Profitability

This table compares Agile Therapeutics and Kala Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Agile Therapeutics N/A -74.70% -60.33%
Kala Pharmaceuticals N/A -103.15% -53.57%

Valuation and Earnings

This table compares Agile Therapeutics and Kala Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Agile Therapeutics N/A N/A -$19.78 million ($0.58) -2.22
Kala Pharmaceuticals N/A N/A -$66.74 million ($2.48) -2.53

Kala Pharmaceuticals is trading at a lower price-to-earnings ratio than Agile Therapeutics, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for Agile Therapeutics and Kala Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Agile Therapeutics 0 0 4 0 3.00
Kala Pharmaceuticals 0 0 6 0 3.00

Agile Therapeutics currently has a consensus price target of $4.00, suggesting a potential upside of 210.08%. Kala Pharmaceuticals has a consensus price target of $21.50, suggesting a potential upside of 242.90%. Given Kala Pharmaceuticals’ higher probable upside, analysts plainly believe Kala Pharmaceuticals is more favorable than Agile Therapeutics.

Institutional and Insider Ownership

42.4% of Agile Therapeutics shares are owned by institutional investors. Comparatively, 69.9% of Kala Pharmaceuticals shares are owned by institutional investors. 8.5% of Agile Therapeutics shares are owned by insiders. Comparatively, 30.8% of Kala Pharmaceuticals 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.

Summary

Kala Pharmaceuticals beats Agile Therapeutics on 6 of the 10 factors compared between the two stocks.

Agile Therapeutics Company Profile

Agile Therapeutics, Inc., a women's healthcare company, focuses on the development and commercialization of prescription contraceptive products for women. Its lead product candidate is Twirla, also known as AG200-15, a once-weekly prescription contraceptive patch, which completed Phase III clinical trials. The company is also developing a pipeline of other transdermal contraceptive products, including AG200-ER, a regimen that allows a woman to extend the length of her cycle; AG200-SP, which is a regimen designed to provide shorter lighter periods; AG200-ER (SmP), a regimen to allow a woman to extend the length of her cycle, as well as experience shorter and lighter periods; and AG890, a progestin-only contraceptive patch intended for use by women who are unable or unwilling to take estrogen. Agile Therapeutics, Inc. was founded in 1997 and is headquartered in Princeton, New Jersey.

Kala Pharmaceuticals Company Profile

Kala Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapies using its proprietary nanoparticle-based Mucus Penetrating Particles (MPP) technology for the treatment of eye diseases. The company's lead product candidate is KPI-121 0.25% which has completed two Phase III clinical trials for the treatment of temporary relief of the signs and symptoms of dry eye disease; INVELTYS which has completed two Phase III clinical trials for the treatment of inflammation and pain following ocular surgery; and KPI-285, a MPP receptor tyrosine kinase inhibitor program, which is in preclinical studies for the treatment of retinal diseases. The company was formerly known as Hanes Newco, Inc. and changed its name to Kala Pharmaceuticals, Inc. in December 2009. Kala Pharmaceuticals, Inc. was founded in 2009 and is headquartered in Watertown, Massachusetts.

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