Immatics (NASDAQ:IMTX – Get Free Report) and Fate Therapeutics (NASDAQ:FATE – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.
Profitability
This table compares Immatics and Fate Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Immatics | -179.67% | -43.58% | -22.38% |
| Fate Therapeutics | -253.30% | -38.17% | -28.42% |
Institutional & Insider Ownership
64.4% of Immatics shares are held by institutional investors. Comparatively, 97.5% of Fate Therapeutics shares are held by institutional investors. 5.0% of Fate Therapeutics shares are held 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.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Immatics | 0 | 0 | 1 | 0 | 3.00 |
| Fate Therapeutics | 1 | 9 | 2 | 0 | 2.08 |
Fate Therapeutics has a consensus price target of $6.73, indicating a potential upside of 48.18%. Given Fate Therapeutics’ higher probable upside, analysts plainly believe Fate Therapeutics is more favorable than Immatics.
Valuation & Earnings
This table compares Immatics and Fate Therapeutics’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Immatics | $58.44 million | 15.10 | -$104.98 million | ($1.30) | -8.02 |
| Fate Therapeutics | $63.53 million | 8.13 | -$160.93 million | ($1.64) | -2.77 |
Immatics has higher earnings, but lower revenue than Fate Therapeutics. Immatics is trading at a lower price-to-earnings ratio than Fate Therapeutics, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Immatics has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Fate Therapeutics has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500.
Summary
Fate Therapeutics beats Immatics on 8 of the 14 factors compared between the two stocks.
About Immatics
Immatics N.V., a clinical-stage biopharmaceutical company, focuses on the research and development of potential T cell redirecting immunotherapies for the treatment of cancer in the United States. The company is developing targeted immunotherapies with a focus on treating solid tumors through two distinct treatment modalities, such as TCR-engineered autologous or allogeneic adoptive cell therapies (ACT) and antibody-like TCR Bispecifics. Its products pipeline includes IMA203 that targets solid tumors, which is in Phase 1b clinical trial; IMA203CD8, a cell therapy product that is in Phase 1b clinical trial; IMA204 that targets tumor stroma, which is in preclinical stage; and IMA30x, an allogenic cellular therapy product candidate, which is in preclinical stage. The company also develops TCR Bispecifics products, including IMA401 and IMA402, which is in Phase 1a clinical trial. The company has a strategic collaboration agreement with MD Anderson Cancer Center to develop multiple T cell and TCR-based adoptive cellular therapies; Celgene Corporation to develop novel adoptive cell therapies targeting multiple cancers; and Genmab A/S to develop T cell engaging bispecific immunotherapies targeting multiple cancer indications. Immatics N.V. is headquartered in Tübingen, Germany.
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.
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