Procaps Group (NASDAQ:PROC) & KALA BIO (NASDAQ:KALA) Critical Analysis

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for KALA BIO and Procaps Group, as provided by MarketBeat.

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

KALA BIO currently has a consensus price target of $15.00, indicating a potential upside of 118.72%. Given KALA BIO’s stronger consensus rating and higher probable upside, research analysts clearly believe KALA BIO is more favorable than Procaps Group.

Risk and Volatility

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KALA BIO	$3.89 million	8.13	-$42.20 million	($12.47)	-0.55
Procaps Group	$409.92 million	N/A	$42.54 million	$0.52	2.90

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.

Profitability

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

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

Insider & Institutional Ownership

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

Summary

Procaps Group beats KALA BIO on 8 of the 12 factors compared between the two stocks.

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.

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.