Forty Seven (NASDAQ:FTSV) & Flex Pharma (NASDAQ:FLKS) Financial Analysis

Flex Pharma (NASDAQ:FLKS) and Forty Seven (NASDAQ:FTSV) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Earnings and Valuation

This table compares Flex Pharma and Forty Seven’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Flex Pharma $840,000.00 11.89 -$21.92 million N/A N/A
Forty Seven N/A N/A -$70.37 million ($3.75) -2.83

Flex Pharma has higher revenue and earnings than Forty Seven.

Insider & Institutional Ownership

14.4% of Flex Pharma shares are held by institutional investors. Comparatively, 47.3% of Forty Seven shares are held by institutional investors. 7.6% of Flex Pharma shares are held by company insiders. Comparatively, 37.4% of Forty Seven shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Flex Pharma and Forty Seven’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Flex Pharma -2,082.22% -155.34% -128.16%
Forty Seven N/A -105.09% -61.52%

Analyst Ratings

This is a summary of recent ratings and price targets for Flex Pharma and Forty Seven, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flex Pharma 0 0 0 0 N/A
Forty Seven 0 0 9 0 3.00

Forty Seven has a consensus price target of $27.75, suggesting a potential upside of 161.79%. Given Forty Seven’s higher probable upside, analysts plainly believe Forty Seven is more favorable than Flex Pharma.

Summary

Forty Seven beats Flex Pharma on 7 of the 9 factors compared between the two stocks.

About Flex Pharma

Flex Pharma, Inc., a biotechnology company, develops and commercializes products for the treatment of muscle cramps, spasms, and spasticity associated with neurological conditions and exercise-associated muscle cramps in the United States. It operates in two segments, Consumer Operations and Drug Development. The company's lead drug candidate is FLX-787, a single molecule, chemically synthesized, and dual transient receptor potential V1/A1 ion channel activator, which completed an exploratory Phase II clinical trial in Australia for the treatment of patients with multiple sclerosis. It also offers HOTSHOT, a consumer beverage to prevent and treat exercise associated muscle cramps. The company markets and sells its HOTSHOT products online through its direct-to-consumer Website and through third-party Websites, including a retailer that offers international shipping. Flex Pharma, Inc. was founded in 2014 and is headquartered in Boston, Massachusetts.

About Forty Seven

Forty Seven Inc., a clinical-stage immuno-oncology company, focuses on developing therapies to activate macrophages for the treatment of cancer. It is developing 5F9, a humanized IgG4 subclass monoclonal antibody against CD47 that is in Phase 1b/2 clinical trials used for the treatment of cancer; FSI-189, an antibody that binds to SIRPa; and FSI-174, an anti-cKIT antibody. Forty Seven Inc. has a collaboration agreement with Genentech to include third clinical trial in non-Hodgkin's lymphoma. The company was formerly known as CD47 Sciences, Inc. Forty Seven Inc. was incorporated in 2014 and is headquartered in Menlo Park, California.

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