89bio (NASDAQ:ETNB – Get Free Report) and 2seventy bio (NASDAQ:TSVT – Get Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.
Profitability
This table compares 89bio and 2seventy bio’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
89bio | N/A | -31.01% | -27.84% |
2seventy bio | -216.73% | -59.19% | -29.67% |
Valuation and Earnings
This table compares 89bio and 2seventy bio’s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
89bio | N/A | N/A | -$142.19 million | ($2.01) | -4.52 |
2seventy bio | $100.39 million | 2.31 | -$217.57 million | ($4.42) | -1.02 |
Institutional & Insider Ownership
93.9% of 2seventy bio shares are owned by institutional investors. 4.4% of 89bio shares are owned by company insiders. Comparatively, 2.6% of 2seventy bio shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk and Volatility
89bio has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, 2seventy bio has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and target prices for 89bio and 2seventy bio, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
89bio | 0 | 2 | 4 | 0 | 2.67 |
2seventy bio | 0 | 5 | 3 | 0 | 2.38 |
89bio currently has a consensus price target of $28.83, indicating a potential upside of 217.55%. 2seventy bio has a consensus price target of $13.17, indicating a potential upside of 191.30%. Given 89bio’s stronger consensus rating and higher probable upside, equities analysts clearly believe 89bio is more favorable than 2seventy bio.
Summary
89bio beats 2seventy bio on 9 of the 13 factors compared between the two stocks.
About 89bio
89bio, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of therapies for the treatment of liver and cardio-metabolic diseases. Its lead product candidate is pegozafermin, a glycoPEGylated analog of fibroblast growth factor 21 for the treatment of nonalcoholic steatohepatitis; and for the treatment of severe hypertriglyceridemia. The company was incorporated in 2018 and is headquartered in San Francisco, California.
About 2seventy bio
2seventy bio, Inc., a cell and gene therapy company, focuses on the research, development, and commercialization of treatments for cancer in the United States. The company's products pipeline includes Abecma, a chimeric antigen receptor T-cell product candidates for the treatment of multiple myeloma. It has a collaboration arrangement with Bristol Myers Squibb Company. The company was incorporated in 2021 and is headquartered in Cambridge, Massachusetts.
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