Critical Survey: Nektar Therapeutics (NASDAQ:NKTR) & Cronos Group (NASDAQ:CRON)

Cronos Group (NASDAQ:CRONGet Free Report) and Nektar Therapeutics (NASDAQ:NKTRGet Free Report) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Profitability

This table compares Cronos Group and Nektar Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cronos Group -1.14% -1.26% -1.20%
Nektar Therapeutics -284.18% -85.40% -39.99%

Earnings and Valuation

This table compares Cronos Group and Nektar Therapeutics”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cronos Group $146.59 million 7.07 -$9.45 million $0.01 278.00
Nektar Therapeutics $55.23 million 42.71 -$164.08 million ($8.42) -8.29

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

Institutional & Insider Ownership

8.7% of Cronos Group shares are held by institutional investors. Comparatively, 75.9% of Nektar Therapeutics shares are held by institutional investors. 7.8% of Cronos Group shares are held by company insiders. Comparatively, 2.5% of Nektar Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Cronos Group has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Nektar Therapeutics has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Cronos Group and Nektar Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cronos Group 1 2 2 0 2.20
Nektar Therapeutics 1 1 9 0 2.73

Cronos Group currently has a consensus target price of $2.30, indicating a potential downside of 17.27%. Nektar Therapeutics has a consensus target price of $149.63, indicating a potential upside of 114.33%. Given Nektar Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Nektar Therapeutics is more favorable than Cronos Group.

Summary

Cronos Group beats Nektar Therapeutics on 8 of the 14 factors compared between the two stocks.

About Cronos Group

(Get Free Report)

Cronos Group Inc. operates as a cannabinoid company that engages in the cultivation, production and marketing of cannabis products in Canada, Israel, and Germany. It offers dried flower, pre-rolls, oils, vaporizers, edibles, and cannabis tinctures under the Spinach, Lord Jones, and PEACE NATURALS brands. Cronos Group Inc. was founded in 2012 and is based in Toronto, Canada.

About Nektar Therapeutics

(Get Free Report)

Nektar Therapeutics, a biopharmaceutical company, focuses on discovering and developing medicines in the field of immunotherapy in the United States and internationally. The company is developing rezpegaldesleukin, a cytokine Treg stimulant that is in phase 2 clinical trial for the treatment of systemic lupus erythematosus and ulcerative colitis, as well as phase 2b clinical trial to treat atopic dermatitis and psoriasis; and NKTR-255, an IL-15 receptor agonist, which is in phase 1 clinical trial to boost the immune system's natural ability to fight cancer. It has collaboration agreements with Takeda Pharmaceutical Company Ltd.; AstraZeneca AB; UCB Pharma S.A.; F. Hoffmann-La Roche Ltd; Bausch Health Companies Inc.; Pfizer Inc.; Amgen Inc.; UCB Pharma (Biogen); Bristol-Myers Squibb Company; Merck KGaA; and SFJ Pharmaceuticals, Inc. The company was incorporated in 1990 and is headquartered in San Francisco, California.

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