Connect Biopharma (NASDAQ:CNTB) & KALA BIO (NASDAQ:KALA) Financial Survey

Connect Biopharma (NASDAQ:CNTB) and KALA BIO (NASDAQ:KALA) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.

Volatility and Risk

Connect Biopharma has a beta of -0.34, meaning that its share price is 134% less volatile than the S&P 500. Comparatively, KALA BIO has a beta of -2.15, meaning that its share price is 315% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Connect Biopharma and KALA BIO, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Connect Biopharma	0	0	1	0	3.00
KALA BIO	0	0	2	0	3.00

Connect Biopharma presently has a consensus price target of $8.00, suggesting a potential upside of 640.74%. KALA BIO has a consensus price target of $15.00, suggesting a potential upside of 120.91%. Given Connect Biopharma’s higher possible upside, research analysts clearly believe Connect Biopharma is more favorable than KALA BIO.

Profitability

This table compares Connect Biopharma and KALA BIO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Connect Biopharma	N/A	N/A	N/A
KALA BIO	N/A	-448.61%	-69.37%

Earnings and Valuation

This table compares Connect Biopharma and KALA BIO”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Connect Biopharma	N/A	N/A	-$59.50 million	N/A	N/A
KALA BIO	$3.89 million	8.05	-$42.20 million	($12.47)	-0.54

KALA BIO has higher revenue and earnings than Connect Biopharma.

Insider and Institutional Ownership

58.7% of Connect Biopharma shares are owned by institutional investors. Comparatively, 24.6% of KALA BIO shares are owned by institutional investors. 22.6% of Connect Biopharma shares are owned by company insiders. Comparatively, 8.3% of KALA BIO shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Connect Biopharma beats KALA BIO on 6 of the 9 factors compared between the two stocks.

About Connect Biopharma

Connect Biopharma Holdings Limited, a clinical-stage biopharmaceutical company, engages in the development of therapies for the treatment of T cell-driven inflammatory diseases. The company is building a pipeline of small molecules and antibodies using functional T cell assays to screen and discover potent product candidates against validated immune targets. Its lead product candidate is rademikibart (formerly CBP-201), an antibody designed to target interleukin-4 receptor alpha, which is a validated target for the treatment of inflammatory diseases such as atopic dermatitis and asthma, currently under Phase 3 studies; and icanbelimod (formerly CBP-307), an oral small molecule Sphingosine 1-Phosphate Receptor 1 modulator, currently under Phase 2 clinical for the treatment of ulcerative colitis and Crohn's disease. The company was founded in 2012 and is based in San Diego, California.

About KALA BIO

KALA BIO, Inc., a clinical-stage biopharmaceutical company, engages in the research, development, and commercialization of innovative therapies for rare and severe eye diseases in the United States. The company's product candidates include KPI-012, which is in Phase 2b clinical trial for the treatment of persistent corneal epithelial defects. Its preclinical development product, including KPI-014 for the treatment of rare inherited retinal diseases. The company was formerly known as Kala Pharmaceuticals, Inc. and changed its name to KALA BIO, Inc. in August 2023. KALA BIO, Inc. was incorporated in 2009 and is headquartered in Arlington, Massachusetts.