Head to Head Review: KALA BIO (NASDAQ:KALA) vs. Procaps Group (NASDAQ:PROC)

Procaps Group (NASDAQ:PROC) and KALA BIO (NASDAQ:KALA) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Valuation and Earnings

This table compares Procaps Group and KALA BIO”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procaps Group	$414.10 million	0.25	$42.54 million	$0.52	1.77
KALA BIO	$3.89 million	8.05	-$42.20 million	($12.47)	-0.54

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

Analyst Ratings

This is a summary of current recommendations for Procaps Group and KALA BIO, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procaps Group	0	0	0	0	0.00
KALA BIO	0	0	2	0	3.00

KALA BIO has a consensus target price of $15.00, suggesting a potential upside of 120.75%. Given KALA BIO’s stronger consensus rating and higher probable upside, analysts clearly believe KALA BIO is more favorable than Procaps Group.

Volatility & Risk

Procaps Group has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500. Comparatively, KALA BIO has a beta of -2.13, indicating that its share price is 313% less volatile than the S&P 500.

Profitability

This table compares Procaps Group and KALA BIO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Procaps Group	N/A	N/A	N/A
KALA BIO	N/A	-448.61%	-69.37%

Insider & Institutional Ownership

24.6% of KALA BIO shares are held by institutional investors. 19.9% of Procaps Group shares are held by company insiders. Comparatively, 8.3% of KALA 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.

Summary

Procaps Group beats KALA BIO on 8 of the 13 factors compared between the two stocks.

About Procaps Group

Procaps Group S.A. develops, produces, and markets pharmaceutical solutions worldwide. The company formulates, manufactures, and markets branded prescription drugs in various therapeutic areas, including feminine care products, pain relief, skin care, digestive health, growth and development, cardiology, vision care, central nervous system, and respiratory. It also provides drugs for hospital use, such as antibiotic, blood clot, personal protective equipment, immunosuppressant, oncology, and analgesics products. In addition, the company offers over-the-counter (OTC) consumer healthcare products through a portfolio on approximately eight therapeutic areas, including gastrointestinal, skin care, cough and cold, analgesics, urological, vitamins, minerals, and supplements in the categories of antibiotics, anti-infective, anti-parasitic, cardiovascular, feminine care, cutaneous antimycotic, pain killers, gastro intestinal, hormonals, metabolic, endocrine, nervous system, ophthalmic, osteoarticular, respiratory, diet supplements, and vitamins and minerals. Further, it provides blood glucose meters, telemonitoring products, oral anti-diabetics products, cosmeceuticals, insulin delivery systems, and other diabetes solutions; and contract drug development and manufacturing services to third party pharmaceutical companies, specializing in soft gelatin capsule technologies. The company was founded in 1977 and is based in Luxembourg, Luxembourg.

About KALA BIO

KALA BIO, Inc., a clinical-stage biopharmaceutical company, engages in the research, development, and commercialization of innovative therapies for rare and severe eye diseases in the United States. The company's product candidates include KPI-012, which is in Phase 2b clinical trial for the treatment of persistent corneal epithelial defects. Its preclinical development product, including KPI-014 for the treatment of rare inherited retinal diseases. The company was formerly known as Kala Pharmaceuticals, Inc. and changed its name to KALA BIO, Inc. in August 2023. KALA BIO, Inc. was incorporated in 2009 and is headquartered in Arlington, Massachusetts.