Reviewing Global Blood Therapeutics (NASDAQ:GBT) and Arvinas (NASDAQ:ARVN)

Global Blood Therapeutics (NASDAQ:GBTGet Rating) and Arvinas (NASDAQ:ARVNGet Rating) are both mid-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Volatility and Risk

Global Blood Therapeutics has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Arvinas has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500.

Earnings & Valuation

This table compares Global Blood Therapeutics and Arvinas’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Global Blood Therapeutics $194.75 million 11.80 -$303.09 million ($4.82) -7.35
Arvinas $46.70 million 76.06 -$191.00 million ($3.81) -17.57

Arvinas has lower revenue, but higher earnings than Global Blood Therapeutics. Arvinas is trading at a lower price-to-earnings ratio than Global Blood Therapeutics, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

93.1% of Global Blood Therapeutics shares are owned by institutional investors. Comparatively, 89.2% of Arvinas shares are owned by institutional investors. 4.7% of Global Blood Therapeutics shares are owned by insiders. Comparatively, 6.5% of Arvinas shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Global Blood Therapeutics and Arvinas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Blood Therapeutics -155.63% -102.42% -43.12%
Arvinas -409.29% -27.31% -16.93%

Analyst Recommendations

This is a summary of current ratings and price targets for Global Blood Therapeutics and Arvinas, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Blood Therapeutics 0 3 10 0 2.77
Arvinas 0 1 16 0 2.94

Global Blood Therapeutics currently has a consensus price target of $67.00, indicating a potential upside of 89.05%. Arvinas has a consensus price target of $115.00, indicating a potential upside of 71.74%. Given Global Blood Therapeutics’ higher probable upside, research analysts clearly believe Global Blood Therapeutics is more favorable than Arvinas.

Summary

Arvinas beats Global Blood Therapeutics on 9 of the 14 factors compared between the two stocks.

About Global Blood Therapeutics (Get Rating)

Global Blood Therapeutics, Inc., a biopharmaceutical company, engages in the discovery, development, and delivery of treatments for underserved patient communities with sickle cell disease (SCD). The company offers Oxbryta tablets, an oral, once-daily therapy for SCD. It also evaluates the safety and pharmacokinetics of single and multiple doses of Oxbryta in a Phase II a clinical trial of adolescent and pediatric patients with SCD. In addition, the company is developing its lead product candidate inclacumab, novel human monoclonal antibody, which is in Phase III a clinical trial to reduce the incidence of painful vaso-occlusive crises, and resulting hospital admissions; and GBT601, a hemoglobin polymerization inhibitor that is in Phase I development. It has a license and collaboration agreement with Syros Pharmaceuticals, Inc. to discover, develop, and commercialize therapies for SCD and beta thalassemia; and Sanofi S.A. to two early-stage research programs in SCD. Global Blood Therapeutics, Inc. was incorporated in 2011 and is headquartered in South San Francisco, California.

About Arvinas (Get Rating)

Arvinas, Inc., a clinical-stage biopharmaceutical company, engages in the discovery, development, and commercialization of therapies to degrade disease-causing proteins. Its lead product candidates include Bavdegalutamide, a proteolysis targeting chimera (PROTAC) protein degrader that is in phase I clinical trial targeting the androgen receptor (AR) protein for the treatment of men with metastatic castration-resistant prostate cancer (mCRPC); ARV-471, a PROTAC protein degrader targeting the estrogen receptor protein for the treatment of patients with metastatic ER positive/HER2 negative breast cancer; and ARV-766 an investigational orally bioavailable PROTAC protein degrader for the treatment of men with mCRPC. The company has collaborations with Pfizer Inc., Genentech, Inc., F. Hoffman-La Roche Ltd., and Bayer AG. Arvinas, Inc. was founded in 2013 and is based in New Haven, Connecticut.

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