Forma Therapeutics (NASDAQ:FMTX) and Beam Therapeutics (NASDAQ:BEAM) Head to Head Review

Beam Therapeutics (NASDAQ:BEAMGet Rating) and Forma Therapeutics (NASDAQ:FMTXGet Rating) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Beam Therapeutics and Forma Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Beam Therapeutics -714.91% -52.28% -32.87%
Forma Therapeutics N/A -30.93% -28.51%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Beam Therapeutics and Forma Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Beam Therapeutics 0 1 6 0 2.86
Forma Therapeutics 0 0 4 0 3.00

Beam Therapeutics currently has a consensus price target of $122.50, suggesting a potential upside of 243.33%. Forma Therapeutics has a consensus price target of $52.00, suggesting a potential upside of 681.95%. Given Forma Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Forma Therapeutics is more favorable than Beam Therapeutics.

Valuation & Earnings

This table compares Beam Therapeutics and Forma Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Beam Therapeutics $51.84 million 48.30 -$370.64 million ($5.95) -6.00
Forma Therapeutics $100.56 million 3.13 -$172.96 million ($3.65) -1.82

Forma Therapeutics has higher revenue and earnings than Beam Therapeutics. Beam Therapeutics is trading at a lower price-to-earnings ratio than Forma Therapeutics, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

68.8% of Beam Therapeutics shares are held by institutional investors. Comparatively, 87.2% of Forma Therapeutics shares are held by institutional investors. 0.7% of Beam Therapeutics shares are held by insiders. Comparatively, 4.3% of Forma Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Beam Therapeutics has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500. Comparatively, Forma Therapeutics has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Summary

Forma Therapeutics beats Beam Therapeutics on 11 of the 14 factors compared between the two stocks.

Beam Therapeutics Company Profile (Get Rating)

Beam Therapeutics Inc., a biotechnology company, develops precision genetic medicines for patients suffering from serious diseases in the United States. The company is developing BEAM-101 for the treatment of sickle cell disease and beta thalassemia; BEAM-102 for the treatment of sickle cell disease; and BEAM-201, an allogeneic chimeric antigen receptor T cell for the treatment of relapsed/refractory T-cell acute lymphoblastic leukemia; and BEAM-301, a liver-targeted development candidate for the treatment of patients with Glycogen Storage Disease Type Ia. It also develops therapies for alpha-1 antitrypsin deficiency; ocular diseases; and other liver, muscle, and central nervous system disorders. The company has an alliance with Boston Children's Hospital; a research and clinical trial collaboration agreement with Magenta Therapeutics, Inc.; license agreement with Sana Biotechnology, Inc.; and a research collaboration with the Institute of Molecular and Clinical Ophthalmology Basel. It also has a research collaboration agreement with Pfizer Inc. and Apellis Pharmaceuticals, Inc.; and collaboration and license agreement with Verve Therapeutics, Inc. The company was incorporated in 2017 and is based in Cambridge, Massachusetts.

Forma Therapeutics Company Profile (Get Rating)

Forma Therapeutics Holdings, Inc., a clinical-stage biopharmaceutical company, focuses on development and commercialization of novel therapeutics for treatment of rare hematologic diseases and cancers. Its core product candidates for development include FT-4202, which is Phase 1 trial for the treatment of sickle cell disease and other hemoglobinopathies; and FT-7051 for the treatment of metastatic castration-resistant prostate cancer. The company is also developing Olutasidenib, a selective inhibitor for cancers with isocitrate dehydrogenase 1 gene mutations, which is in Phase II trial for the treatment of relapsed/refractory acute myeloid leukemia and Phase I trial to treat glioma; and FT-8225, a liver-targeted fatty-acid synthase inhibitor designed to block de novo lipogenesis in the liver. Forma Therapeutics Holdings, Inc. was founded in 2007 and is headquartered in Watertown, Massachusetts.

Receive News & Ratings for Beam Therapeutics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Beam Therapeutics and related companies with MarketBeat.com's FREE daily email newsletter.