iTeos Therapeutics (NASDAQ:ITOS) & Fate Therapeutics (NASDAQ:FATE) Critical Comparison

iTeos Therapeutics (NASDAQ:ITOS) and Fate Therapeutics (NASDAQ:FATE) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for iTeos Therapeutics and Fate Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iTeos Therapeutics	0	0	4	0	3.00
Fate Therapeutics	0	7	3	0	2.30

iTeos Therapeutics presently has a consensus price target of $22.25, suggesting a potential upside of 196.67%. Fate Therapeutics has a consensus price target of $6.75, suggesting a potential upside of 294.74%. Given Fate Therapeutics’ higher possible upside, analysts clearly believe Fate Therapeutics is more favorable than iTeos Therapeutics.

Institutional and Insider Ownership

97.2% of iTeos Therapeutics shares are owned by institutional investors. Comparatively, 97.5% of Fate Therapeutics shares are owned by institutional investors. 12.5% of iTeos Therapeutics shares are owned by company insiders. Comparatively, 5.0% of Fate Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares iTeos Therapeutics and Fate Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iTeos Therapeutics	N/A	-20.11%	-17.50%
Fate Therapeutics	-1,325.43%	-45.88%	-33.95%

Earnings and Valuation

This table compares iTeos Therapeutics and Fate Therapeutics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iTeos Therapeutics	$12.60 million	21.74	-$112.64 million	($3.15)	-2.38
Fate Therapeutics	$13.45 million	14.48	-$160.93 million	($1.65)	-1.04

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

Volatility and Risk

iTeos Therapeutics has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, Fate Therapeutics has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500.

Summary

iTeos Therapeutics beats Fate Therapeutics on 8 of the 14 factors compared between the two stocks.

About iTeos Therapeutics

iTeos Therapeutics, Inc. is a clinical-stage biopharmaceutical company, which engages in the discovery and development of a new generation of immuno-oncology therapeutics for people living with cancer. Its pipeline includes EOS-448, Inupadenant, and EOS-984. The company was founded by Michel Detheux in April 2012 and is headquartered in Watertown, MA.

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.