Head to Head Comparison: Forte Biosciences (NASDAQ:FBRX) and Aytu BioPharma (NASDAQ:AYTU)

Forte Biosciences (NASDAQ:FBRX) and Aytu BioPharma (NASDAQ:AYTU) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Institutional & Insider Ownership

77.6% of Forte Biosciences shares are held by institutional investors. Comparatively, 33.5% of Aytu BioPharma shares are held by institutional investors. 9.6% of Forte Biosciences shares are held by insiders. Comparatively, 2.8% of Aytu BioPharma shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Forte Biosciences and Aytu BioPharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Forte Biosciences	N/A	-151.43%	-118.92%
Aytu BioPharma	-8.28%	-21.89%	-5.37%

Valuation and Earnings

This table compares Forte Biosciences and Aytu BioPharma”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Forte Biosciences	N/A	N/A	-$31.48 million	($16.29)	-1.28
Aytu BioPharma	$79.76 million	0.14	-$15.84 million	($1.23)	-1.46

Aytu BioPharma has higher revenue and earnings than Forte Biosciences. Aytu BioPharma is trading at a lower price-to-earnings ratio than Forte Biosciences, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Forte Biosciences has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Aytu BioPharma has a beta of -1.43, suggesting that its stock price is 243% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Forte Biosciences and Aytu BioPharma, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forte Biosciences	0	0	3	0	3.00
Aytu BioPharma	0	0	0	0	0.00

Forte Biosciences currently has a consensus price target of $23.58, indicating a potential upside of 13.55%. Given Forte Biosciences’ stronger consensus rating and higher probable upside, equities analysts clearly believe Forte Biosciences is more favorable than Aytu BioPharma.

Summary

Forte Biosciences beats Aytu BioPharma on 8 of the 13 factors compared between the two stocks.

About Forte Biosciences

Forte Biosciences, Inc. operates as a biopharmaceutical company in the United States. The company is developing FB-102 program that addresses various autoimmune diseases, such as graft-versus-host disease, and vitiligo and alopecia areata. Forte Biosciences, Inc. is headquartered in Dallas, Texas.

About Aytu BioPharma

Aytu Biopharma, Inc., a commercial-stage pharmaceutical company, focuses on commercializing novel therapeutics and consumer healthcare products the United States and internationally. The company operates through two segments: Rx segment and Consumer Health segment. The Rx segment offers prescription products for the treatment of attention deficit hyperactivity disorder (ADHD), including Adzenys XR-ODT for patients from six years and older, and Cotempla XR-ODT for patients from six to seventeen years old. The segment also provides pediatric prescription product portfolio comprising Karbinal ER, an extended-release carbinoxamine (antihistamine) suspension indicated to treat numerous allergic conditions for patients two years and above; and Poly-Vi-Flor and Tri-Vi-Flor complementary prescription fluoride-based multi-vitamin products containing combinations of fluoride and vitamins in liquid and chewable tablet form for infants and children with fluoride deficiency. The Consumer Health segment is involved in the commercialization of over-the-counter medicines, personal care products, and dietary supplements in various categories, such as hair loss, digestive health, urological health, diabetes management, and allergy. The segment offers Regoxidine – for Men and Women, a proprietary over-the-counter aerosol foam that works to treat hair loss in both men and women; and OmepraCareDR and EsomepraCareDR, acid reducers for the treatment of frequent heartburn. It also engages in the development of AR101 (enzastaurin), an orally available investigational first-in-class small molecule, serine/threonine kinase inhibitor targeting the treatment of vascular Ehlers-Danlos Syndrome. The company was formerly known as Aytu BioScience, Inc. and changed its name to Aytu Biopharma, Inc. in March 2021. Aytu Biopharma, Inc. is based in Denver, Colorado.