Compass Therapeutics (NASDAQ:CMPX – Get Free Report) and Generation Bio (NASDAQ:GBIO – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.
Profitability
This table compares Compass Therapeutics and Generation Bio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Compass Therapeutics | N/A | -42.47% | -38.31% |
| Generation Bio | -292.92% | -75.84% | -30.40% |
Earnings and Valuation
This table compares Compass Therapeutics and Generation Bio”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Compass Therapeutics | $850,000.00 | 439.25 | -$49.38 million | ($0.41) | -6.59 |
| Generation Bio | $19.89 million | 1.30 | -$131.67 million | ($1.08) | -0.36 |
Compass Therapeutics has higher earnings, but lower revenue than Generation Bio. Compass Therapeutics is trading at a lower price-to-earnings ratio than Generation Bio, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and price targets for Compass Therapeutics and Generation Bio, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Compass Therapeutics | 0 | 0 | 9 | 1 | 3.10 |
| Generation Bio | 0 | 0 | 3 | 0 | 3.00 |
Compass Therapeutics presently has a consensus price target of $12.67, indicating a potential upside of 369.14%. Generation Bio has a consensus price target of $7.33, indicating a potential upside of 1,797.86%. Given Generation Bio’s higher probable upside, analysts plainly believe Generation Bio is more favorable than Compass Therapeutics.
Risk & Volatility
Compass Therapeutics has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, Generation Bio has a beta of 2.59, indicating that its stock price is 159% more volatile than the S&P 500.
Insider and Institutional Ownership
68.4% of Compass Therapeutics shares are held by institutional investors. Comparatively, 95.2% of Generation Bio shares are held by institutional investors. 29.8% of Compass Therapeutics shares are held by company insiders. Comparatively, 21.1% of Generation Bio shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Compass Therapeutics beats Generation Bio on 9 of the 15 factors compared between the two stocks.
About Compass Therapeutics
Compass Therapeutics, Inc., a clinical-stage oncology-focused biopharmaceutical company, engages in developing antibody-based therapeutics to treat various human diseases in the United States. The company's lead product candidates include CTX-009, a bispecific antibody that blocks Delta-like ligand 4 a ligand of Notch-1, and vascular endothelial growth factor A signaling pathways, which are critical to angiogenesis and tumor vascularization; and CTX-471, an IgG4 monoclonal antibody that is an agonist of CD137, a key co-stimulatory receptor on immune cells. It also develops CTX-8371, a bispecific inhibitor that targets PD-1 and PD-L1 checkpoint inhibitor antibodies. The company was founded in 2014 and is headquartered in Boston, Massachusetts.
About Generation Bio
Generation Bio Co. develops non-viral genetic medicines for the treatment of rare and prevalent diseases. The company develops cell-targeted lipid nanoparticle (ctLNP) platform, a modular delivery system for nucleic acids to avoid off-target clearance by the liver and spleen that enables ctLNPs to persist in systemic circulation, which allows for highly selective and potent ligand-driven targeting to specific tissues and cell types; and novel immune-quiet DNA (iqDNA) to enable long-lasting high levels of gene expression from non-integrating episomes and avoids innate immune sensors that have long prevented DNA from use in non-viral systems. It uses its platform for developing a portfolio of programs for treating cancer, autoimmune, hematologic disorders, prioritizing sickle cell, beta-thalassemia, and hemophilia A diseases, as well as for other tissues and cell types, including retina, skeletal muscle, and central nervous system. The company was formerly known as Torus Therapeutics, Inc. and changed its name to Generation Bio Co. in November 2017. Generation Bio Co. was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.
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