Analyzing Roivant Sciences (NASDAQ:ROIV) and Krystal Biotech (NASDAQ:KRYS)

Krystal Biotech (NASDAQ:KRYS) and Roivant Sciences (NASDAQ:ROIV) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.

Institutional and Insider Ownership

86.3% of Krystal Biotech shares are owned by institutional investors. Comparatively, 64.8% of Roivant Sciences shares are owned by institutional investors. 13.1% of Krystal Biotech shares are owned by insiders. Comparatively, 8.8% of Roivant Sciences shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Krystal Biotech and Roivant Sciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Krystal Biotech	54.82%	19.34%	17.65%
Roivant Sciences	-3,534.96%	-22.94%	-21.53%

Analyst Recommendations

This is a summary of recent ratings for Krystal Biotech and Roivant Sciences, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Krystal Biotech	0	2	10	2	3.00
Roivant Sciences	1	2	10	1	2.79

Krystal Biotech currently has a consensus target price of $377.20, suggesting a potential upside of 13.59%. Roivant Sciences has a consensus target price of $45.64, suggesting a potential upside of 31.94%. Given Roivant Sciences’ higher probable upside, analysts clearly believe Roivant Sciences is more favorable than Krystal Biotech.

Valuation & Earnings

This table compares Krystal Biotech and Roivant Sciences”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Krystal Biotech	$440.48 million	22.31	$204.83 million	$7.98	41.61
Roivant Sciences	$8.26 million	3,024.82	-$299.77 million	($0.53)	-65.26

Krystal Biotech has higher revenue and earnings than Roivant Sciences. Roivant Sciences is trading at a lower price-to-earnings ratio than Krystal Biotech, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Krystal Biotech has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, Roivant Sciences has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Summary

Krystal Biotech beats Roivant Sciences on 11 of the 14 factors compared between the two stocks.

About Krystal Biotech

Krystal Biotech, Inc., a commercial-stage biotechnology company, discovers, develops, and commercializes genetic medicines for patients with rare diseases in the United States. It commercializes VYJUVEK (beremagene geperpavec-svdt, or B-VEC) for the treatment of dystrophic epidermolysis bullosa (DEB). The company also develops KB105, which is in Phase 1/2 clinical trials for treating patients with deficient autosomal recessive congenital ichthyosis; KB104 for treating netherton syndrome; KB407 that is in Phase 1 clinical trials for treating cystic fibrosis; KB707 that is in Phase 1 clinical trials for the treatment of anti-PD-1 relapsed/refractory; KB408, which is in Phase 1 clinical trials for treating Alpha-1 antitrypsin deficiency; and KB301 that is in Phase 2 clinical trials for treating aesthetic skin conditions, as well as in open label study with ophthalmic B-VEC for treating for ocular complications of deb. Krystal Biotech, Inc. was founded in 2016 and is headquartered in Pittsburgh, Pennsylvania.

About Roivant Sciences

Roivant Sciences Ltd., a commercial-stage biopharmaceutical company, engages in the development and commercialization of medicines for inflammation and immunology areas. The company provides Vants, a model to develop and commercialize its medicines and technologies focusing on biopharmaceutical businesses, discovery-stage companies, and health technology startups. It develops VTAMA, a novel topical for the treatment of psoriasis and atopic dermatitis; batoclimab and IMVT-1402, the fully human monoclonal antibodies targeting the neonatal Fc receptor across various IgG-mediated autoimmune indications; and RVT-3101, an anti-TL1A antibody for ulcerative colitis and Crohn's disease. The company was founded in 2014 and is based in London, the United Kingdom.