4D Molecular Therapeutics (NASDAQ:FDMT) vs. Axcella Health (NASDAQ:AXLA) Financial Analysis

Axcella Health (NASDAQ:AXLAGet Rating) and 4D Molecular Therapeutics (NASDAQ:FDMTGet Rating) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.

Profitability

This table compares Axcella Health and 4D Molecular Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Axcella Health N/A -202.08% -99.10%
4D Molecular Therapeutics -470.82% -30.09% -27.68%

Risk and Volatility

Axcella Health has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, 4D Molecular Therapeutics has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500.

Insider and Institutional Ownership

61.8% of Axcella Health shares are owned by institutional investors. Comparatively, 76.6% of 4D Molecular Therapeutics shares are owned by institutional investors. 6.5% of Axcella Health shares are owned by company insiders. Comparatively, 11.2% of 4D Molecular Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Axcella Health and 4D Molecular Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Axcella Health 1 1 5 0 2.57
4D Molecular Therapeutics 0 0 1 0 3.00

Axcella Health presently has a consensus price target of $8.00, indicating a potential upside of 344.44%. 4D Molecular Therapeutics has a consensus price target of $30.00, indicating a potential upside of 362.25%. Given 4D Molecular Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe 4D Molecular Therapeutics is more favorable than Axcella Health.

Earnings & Valuation

This table compares Axcella Health and 4D Molecular Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Axcella Health N/A N/A -$64.63 million ($1.75) -1.03
4D Molecular Therapeutics $18.04 million 11.62 -$71.32 million ($2.77) -2.34

Axcella Health has higher earnings, but lower revenue than 4D Molecular Therapeutics. 4D Molecular Therapeutics is trading at a lower price-to-earnings ratio than Axcella Health, indicating that it is currently the more affordable of the two stocks.

Summary

4D Molecular Therapeutics beats Axcella Health on 8 of the 13 factors compared between the two stocks.

About Axcella Health (Get Rating)

Axcella Health Inc. operates as a clinical stage biotechnology company in the United States. The company treats complex diseases and enhances health using endogenous metabolic modulator compositions. Its lead product candidates include AXA1665, which is in Phase 2 clinical trial for the reduction in risk of overt hepatic encephalopathy recurrence; and AXA1125 that is in Phase 2b clinical trial for treating non-alcoholic steatohepatitis, as well as in Phase 2a clinical trial for Long COVID therapy for patients. The company was formerly known as Newco LS16, Inc. and changed its name to Axcella Health Inc. in June 2016. Axcella Health Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.

About 4D Molecular Therapeutics (Get Rating)

4D Molecular Therapeutics, Inc., a clinical-stage gene therapy company, develops product candidates using its adeno-associated viruses vectors. It develops a portfolio of gene therapy product candidates focuses in three therapeutic areas: ophthalmology, cardiology, and pulmonology. The company has three product candidates that are in clinical trials: 4D-125 that is in a Phase 1/2 clinical trial for the treatment of X-linked retinitis pigmentosa; 4D-110 that is in a Phase 1/2 clinical trial for the treatment of choroideremia; and 4D-310, which is in a Phase 1/2 clinical trial for the treatment of Fabry disease. Its two IND candidates are 4D-150 for the treatment of wet age-related macular degeneration and 4D-710 for the treatment of cystic fibrosis lung disease. 4D Molecular Therapeutics, Inc. has research and collaboration arrangements with uniQure; CRF; Roche; and CFF. The company was founded in 2013 and is headquartered in Emeryville, California.4D Molecular Therapeutics, Inc., a clinical-stage gene therapy company, develops product candidates using its adeno-associated viruses vectors. It develops a portfolio of gene therapy product candidates focuses in three therapeutic areas: ophthalmology, cardiology, and pulmonology. The company has three product candidates that are in clinical trials: 4D-125 that is in a Phase 1/2 clinical trial for the treatment of X-linked retinitis pigmentosa; 4D-110 that is in a Phase 1/2 clinical trial for the treatment of choroideremia; and 4D-310, which is in a Phase 1/2 clinical trial for the treatment of Fabry disease. Its two IND candidates are 4D-150 for the treatment of wet age-related macular degeneration and 4D-710 for the treatment of cystic fibrosis lung disease. 4D Molecular Therapeutics, Inc. has research and collaboration arrangements with uniQure; CRF; Roche; and CFF. The company was founded in 2013 and is headquartered in Emeryville, California.

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