Head-To-Head Contrast: Korro Bio (NASDAQ:KRRO) & Redhill Biopharma (NASDAQ:RDHL)
by Danessa Lincoln · The Markets DailyRedhill Biopharma (NASDAQ:RDHL – Get Free Report) and Korro Bio (NASDAQ:KRRO – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.
Insider & Institutional Ownership
7.2% of Redhill Biopharma shares are held by institutional investors. Comparatively, 13.2% of Korro Bio shares are held by institutional investors. 6.8% of Redhill Biopharma shares are held by company insiders. Comparatively, 4.6% of Korro Bio shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Redhill Biopharma and Korro Bio, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Redhill Biopharma | 1 | 0 | 0 | 0 | 1.00 |
| Korro Bio | 1 | 8 | 1 | 0 | 2.00 |
Korro Bio has a consensus target price of $76.00, suggesting a potential upside of 862.63%. Given Korro Bio’s stronger consensus rating and higher probable upside, analysts clearly believe Korro Bio is more favorable than Redhill Biopharma.
Earnings & Valuation
This table compares Redhill Biopharma and Korro Bio”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Redhill Biopharma | $8.04 million | 0.67 | -$8.27 million | $486.75 | 0.00 |
| Korro Bio | $2.27 million | 32.76 | -$83.58 million | ($9.41) | -0.84 |
Redhill Biopharma has higher revenue and earnings than Korro Bio. Korro Bio is trading at a lower price-to-earnings ratio than Redhill Biopharma, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Redhill Biopharma has a beta of 4.83, meaning that its stock price is 383% more volatile than the S&P 500. Comparatively, Korro Bio has a beta of 3.03, meaning that its stock price is 203% more volatile than the S&P 500.
Profitability
This table compares Redhill Biopharma and Korro Bio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Redhill Biopharma | N/A | N/A | N/A |
| Korro Bio | -1,199.53% | -68.87% | -45.91% |
Summary
Redhill Biopharma beats Korro Bio on 9 of the 14 factors compared between the two stocks.
About Redhill Biopharma
RedHill Biopharma Ltd., a specialty biopharmaceutical company, primarily focuses on gastrointestinal and infectious diseases. The company develops and commercializes Talicia for the treatment of H. pylori infection in adults; and Aemcolo for the treatment of travelers' diarrhea in adults. Its pipeline consists of five therapeutic candidates, which are in clinical development include opaganib for treating patients hospitalized with SARS-CoV-2 severe COVID-19 pneumonia, advanced unresectable cholangiocarcinoma, prostate cancer, and nuclear radiation protection; RHB-107 (upamostat) for treating outpatients infected with SARS-CoV-2 (COVID-19 disease) and advanced unresectable cholangiocarcinoma; RHB-104 for Crohn's disease; RHB-102 (Bekinda) for the treatment of acute gastroenteritis and gastritis, irritable bowel syndrome with diarrhea, and oncology support anti-emetic; and RHB-204 for pulmonary nontuberculous mycobacteria infections caused by mycobacterium avium complex. The company was incorporated in 2009 and is headquartered in Tel Aviv, Israel.
About Korro Bio
Korro Bio, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of genetic medicines based on editing RNA for the treatment of rare and highly prevalent diseases primarily in the United States. Its lead product candidate is KRRO-110 which is in preclinical trials for the treatment of Alpha-1 Antitrypsin Deficiency (AATD). It uses its RNA editing platform, OPERA to generate differentiated RNA editing product candidates. The company is also developing programs for Parkinson's disease, Amyotrophic lateral sclerosis, severe alcohol-associated hepatitis, and other subsets of pain. Korro Bio, Inc. was founded in 2018 and is based in Cambridge, Massachusetts.