Head-To-Head Contrast: Eliem Therapeutics (NASDAQ:ELYM) & Insmed (NASDAQ:INSM)

Insmed (NASDAQ:INSM) and Eliem Therapeutics (NASDAQ:ELYM) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.

Insider and Institutional Ownership

69.8% of Eliem Therapeutics shares are owned by institutional investors. 3.0% of Insmed shares are owned by insiders. Comparatively, 4.7% of Eliem Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Insmed	0	0	16	0	3.00
Eliem Therapeutics	0	0	0	0	0.00

Insmed presently has a consensus target price of $94.00, indicating a potential upside of 36.31%. Given Insmed’s stronger consensus rating and higher probable upside, analysts plainly believe Insmed is more favorable than Eliem Therapeutics.

Earnings and Valuation

This table compares Insmed and Eliem Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Insmed	$363.71 million	34.47	-$749.57 million	($5.59)	-12.34
Eliem Therapeutics	N/A	N/A	-$35.12 million	($0.53)	-2.53

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

Profitability

This table compares Insmed and Eliem Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Insmed	-251.24%	-4,773.73%	-54.58%
Eliem Therapeutics	N/A	-47.03%	-45.97%

Volatility & Risk

Insmed has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Eliem Therapeutics has a beta of -0.39, indicating that its stock price is 139% less volatile than the S&P 500.

Summary

Eliem Therapeutics beats Insmed on 8 of the 13 factors compared between the two stocks.

About Insmed

Insmed Incorporated is a global biopharmaceutical company on a mission to transform the lives of patients with serious and rare diseases. Insmed’s first commercial product is ARIKAYCE® (amikacin liposome inhalation suspension), which is approved in the United States for the treatment of Mycobacterium avium complex (MAC) lung disease as part of a combination antibacterial drug regimen for adult patients with limited or no alternative treatment options. MAC lung disease is a rare and often chronic infection that can cause irreversible lung damage and can be fatal. Insmed’s earlier-stage clinical pipeline includes INS1007, a novel oral reversible inhibitor of dipeptidyl peptidase 1 with therapeutic potential in non-cystic fibrosis bronchiectasis and other inflammatory diseases, and INS1009, an inhaled formulation of a treprostinil prodrug that may offer a differentiated product profile for rare pulmonary disorders, including pulmonary arterial hypertension.

About Eliem Therapeutics

Eliem Therapeutics, Inc., a biotechnology company, focuses on developing therapies for neuronal excitability disorders to address unmet needs in psychiatry, epilepsy, chronic pain, and other disorders of the peripheral and central nervous systems. The company was incorporated in 2018 and is headquartered in Wilmington, Delaware.