Comparing Keros Therapeutics (NASDAQ:KROS) and Akebia Therapeutics (NASDAQ:AKBA)

Keros Therapeutics (NASDAQ:KROS) and Akebia Therapeutics (NASDAQ:AKBA) are both small-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Volatility & Risk

Keros Therapeutics has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Akebia Therapeutics has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500.

Insider and Institutional Ownership

71.6% of Keros Therapeutics shares are owned by institutional investors. Comparatively, 33.9% of Akebia Therapeutics shares are owned by institutional investors. 12.6% of Keros Therapeutics shares are owned by insiders. Comparatively, 4.3% of Akebia Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Keros Therapeutics and Akebia Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Keros Therapeutics	$244.06 million	0.92	$87.01 million	($3.70)	-3.05
Akebia Therapeutics	$236.20 million	0.67	-$5.34 million	($0.11)	-5.15

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

Profitability

This table compares Keros Therapeutics and Akebia Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Keros Therapeutics	-256.60%	-21.40%	-19.79%
Akebia Therapeutics	-13.54%	-88.88%	-7.74%

Analyst Ratings

This is a summary of recent recommendations for Keros Therapeutics and Akebia Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Keros Therapeutics	1	4	4	0	2.33
Akebia Therapeutics	1	2	4	0	2.43

Keros Therapeutics currently has a consensus target price of $20.50, suggesting a potential upside of 81.74%. Akebia Therapeutics has a consensus target price of $3.90, suggesting a potential upside of 587.95%. Given Akebia Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Akebia Therapeutics is more favorable than Keros Therapeutics.

Summary

Keros Therapeutics beats Akebia Therapeutics on 8 of the 13 factors compared between the two stocks.

About Keros Therapeutics

Keros Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops and commercializes novel therapeutics for patients with disorders that are linked to dysfunctional signaling of the transforming growth factor-beta family of proteins in the United States. The company's lead product candidate is KER-050, which is being developed for the treatment of low blood cell counts, or cytopenias, including anemia and thrombocytopenia in patients with myelodysplastic syndromes, as well as in patients with myelofibrosis. It also develops KER-012, which is in Phase II clinical trial to treat pulmonary arterial hypertension and cardiovascular disorders; and KER-065 that is in Phase I clinical trial for the treatment of obesity and neuromuscular diseases. In addition, the company has collaboration and license agreement with Hansoh (Shanghai) Healthtech Co., Ltd. to develop, manufacture, and commercialize KER-050 and licensed products containing KER-050. Keros Therapeutics, Inc. was incorporated in 2015 and is headquartered in Lexington, Massachusetts.

About Akebia Therapeutics

Akebia Therapeutics, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics for patients with kidney diseases. The company’s lead product investigational product candidate is Vafseo (vadadustat), an oral hypoxia-inducible factor prolyl hydroxylase, which is in Phase III development for the treatment of anemia due to chronic kidney disease (CKD) in dialysis-dependent and non-dialysis dependent patients. It offers Auryxia, a ferric citrate that is used to control the serum phosphorus levels in adult patients with DD-CKD on dialysis; and the treatment of iron deficiency anemia in adult patients with CKD not on dialysis. The company’s product pipeline includes AKB-9090, a drug targeting critical-care indications; and AKB-10108, a drug targeting conditions related to premature birth. It has collaboration agreements with Mitsubishi Tanabe Pharma Corporation for the development and commercialization of vadadustat in Japan and other Asian countries, as well as research and license agreement with Janssen Pharmaceutica NV for the development and commercialization of hypoxia-inducible factor prolyl hydroxylase targeted compounds worldwide. Akebia Therapeutics, Inc. was incorporated in 2007 and is headquartered in Cambridge, Massachusetts.