Fate Therapeutics (NASDAQ:FATE – Get Free Report) and CureVac (NASDAQ:CVAC – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
Institutional and Insider Ownership
97.5% of Fate Therapeutics shares are owned by institutional investors. Comparatively, 17.3% of CureVac shares are owned by institutional investors. 4.7% of Fate Therapeutics shares are owned by insiders. Comparatively, 2.1% of CureVac shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Fate Therapeutics and CureVac’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fate Therapeutics | -1,941.09% | -65.08% | -41.73% |
| CureVac | 199.92% | -23.03% | -19.09% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fate Therapeutics | 1 | 3 | 4 | 0 | 2.38 |
| CureVac | 1 | 0 | 0 | 0 | 1.00 |
Fate Therapeutics currently has a consensus target price of $5.90, suggesting a potential upside of 151.06%. Given Fate Therapeutics’ stronger consensus rating and higher probable upside, equities analysts clearly believe Fate Therapeutics is more favorable than CureVac.
Volatility & Risk
Fate Therapeutics has a beta of 2.54, meaning that its stock price is 154% more volatile than the S&P 500. Comparatively, CureVac has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500.
Earnings and Valuation
This table compares Fate Therapeutics and CureVac”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fate Therapeutics | $6.65 million | 42.34 | -$136.32 million | ($1.05) | -2.24 |
| CureVac | $70.74 million | 14.78 | $175.50 million | $0.72 | 6.47 |
CureVac has higher revenue and earnings than Fate Therapeutics. Fate Therapeutics is trading at a lower price-to-earnings ratio than CureVac, indicating that it is currently the more affordable of the two stocks.
About Fate Therapeutics
Fate Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops programmed cellular immunotherapies for cancer and immune disorders worldwide. The company's chimeric antigen receptor (CAR)-targeted NK and T-cell product candidates include FT576 to treat multiple myeloma, and FT522, to treat lymphoma and autoimmune disorders. Its CAR T-cell programs include FT819 to treat hematologic malignancies and solid tumors, and FT825 to treat solid tumors. The company has a collaboration and option agreement with Ono Pharmaceutical Co. Ltd. for the development and commercialization of off-the-shelf, iPSC-derived CAR T-cell product candidates for the treatment of cancer. Fate Therapeutics, Inc. was incorporated in 2007 and is headquartered in San Diego, California.
About CureVac
CureVac N.V., a biopharmaceutical company, focuses on developing various transformative medicines based on messenger ribonucleic acid (mRNA). It is developing prophylactic vaccines, such as mRNA-based vaccine candidates CV2CoV, which is in Phase 1 clinical trial against SARS-CoV-2; CV7202 which is in Phase 1 clinical trial for the treatment of rabies; and CVSQIV to treat multivalent seasonal influenza; Flu SV mRNA fot treating nucleotides, single antigen seasonal influenza. The company develops CV8102, which is in Phase 1 clinical trial for treating melanoma and adenoidcystic carcinoma, as well as squamous cell cancer of skin, head, and neck; and CVGBM for treating cancer. CureVac N.V. was founded in 2000 and is headquartered in Tübingen, Germany.
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