Head to Head Analysis: Sage Therapeutics (SAGE) and Kala Pharmaceuticals (KALA)

Sage Therapeutics (NASDAQ: SAGE) and Kala Pharmaceuticals (NASDAQ:KALA) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Sage Therapeutics N/A -89.46% -78.94%
Kala Pharmaceuticals N/A N/A N/A

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Sage Therapeutics N/A N/A -$158.98 million ($6.87) -13.89
Kala Pharmaceuticals $40,000.00 13,087.55 -$33.16 million N/A N/A

Kala Pharmaceuticals has higher revenue and earnings than Sage Therapeutics.

Institutional & Insider Ownership

22.2% of Kala Pharmaceuticals shares are owned by institutional investors. 6.1% of Sage Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Sage Therapeutics and Kala Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sage Therapeutics 0 1 13 0 2.93
Kala Pharmaceuticals 0 0 5 0 3.00

Sage Therapeutics presently has a consensus target price of $105.71, indicating a potential upside of 10.77%. Kala Pharmaceuticals has a consensus target price of $36.80, indicating a potential upside of 72.37%. Given Kala Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Kala Pharmaceuticals is more favorable than Sage Therapeutics.

Summary

Kala Pharmaceuticals beats Sage Therapeutics on 7 of the 9 factors compared between the two stocks.

Sage Therapeutics Company Profile

SAGE Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in developing and commercializing medicines to treat central nervous system (CNS) disorders. The Company’s lead product candidate, SAGE-547 is an intravenous formulation of allopregnanolone, a neurosteroid that acts as a synaptic and extrasynaptic modulator of the Gamma-Amino Butyric Acid-A (GABAA) receptor. The Company’s next-generation product candidates, SAGE-217 and SAGE-689, also target the GABAA receptor system. The Company is focused on developing drugs based on selective allosteric modulation of CNS synaptic and extrasynaptic receptors. The Company’s chemistry platform is focused on the chemical scaffolds of endogenous or chemically modified synthetic neuroactive steroid compounds that are allosteric modulators of GABAA or N-Methyl-D-aspartic acid or N-Methyl-D-aspartate (NMDA) receptors.

Kala Pharmaceuticals Company Profile

Kala Pharmaceuticals, Inc. is a biopharmaceutical company focused on the development and commercialization of therapeutics through its nanoparticle-based Mucus Penetrating Particles, or MPP, technology. The Company’s initial focus is on the treatment of eye diseases. The Company’s product candidate includes KPI-121 1%, KPI-121 0.25% and MPP rTKI Program. The Company has completed two Phase III clinical trials for KPI-121 1% . The KPI-121 0.25% is the Company’s product candidate for temporary relief of signs and symptoms of dry eye disease. KPI-121 1% is the twice-a-day product candidate for treatment of post-operative inflammation and pain following ocular surgery. MPP rTKI Program is therapies for retinal diseases that should be injected directly into the patient’s eye, often at monthly intervals.

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