Head to Head Analysis: Gemini Therapeutics (NASDAQ:GMTX) and Spruce Biosciences (NASDAQ:SPRB)

Spruce Biosciences (NASDAQ:SPRB) and Gemini Therapeutics (NASDAQ:GMTX) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Insider & Institutional Ownership

91.7% of Spruce Biosciences shares are held by institutional investors. Comparatively, 75.4% of Gemini Therapeutics shares are held by institutional investors. 6.9% of Spruce Biosciences shares are held by company insiders. Comparatively, 12.9% of Gemini Therapeutics shares are held by company 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

Spruce Biosciences has a beta of 2.43, meaning that its stock price is 143% more volatile than the S&P 500. Comparatively, Gemini Therapeutics has a beta of -0.12, meaning that its stock price is 112% less volatile than the S&P 500.

Valuation and Earnings

This table compares Spruce Biosciences and Gemini Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spruce Biosciences	$4.91 million	1.16	-$47.92 million	($1.32)	-0.10
Gemini Therapeutics	N/A	N/A	-$71.87 million	($1.00)	-60.83

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

Profitability

This table compares Spruce Biosciences and Gemini Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spruce Biosciences	-555.23%	-62.10%	-47.49%
Gemini Therapeutics	N/A	-38.78%	-35.88%

Analyst Recommendations

This is a summary of current ratings and price targets for Spruce Biosciences and Gemini Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spruce Biosciences	0	6	0	0	2.00
Gemini Therapeutics	0	0	0	0	0.00

Spruce Biosciences currently has a consensus price target of $131.25, indicating a potential upside of 97,122.22%. Given Spruce Biosciences’ stronger consensus rating and higher possible upside, analysts clearly believe Spruce Biosciences is more favorable than Gemini Therapeutics.

Summary

Spruce Biosciences beats Gemini Therapeutics on 7 of the 12 factors compared between the two stocks.

About Spruce Biosciences

Spruce Biosciences, Inc., a biopharmaceutical company, focuses on developing and commercializing novel therapies for rare endocrine disorders. The company engages in developing tildacerfont, a non-steroidal therapy to enhance disease control and reduce steroid burden for patients suffering from congenital adrenal hyperplasia (CAH), which is in Phase 2b clinical trial; and to evaluate glucocorticoid reduction in adult patients with classic CAH that is Phase 2b clinical trial. It is also developing tildacerfont for the treatment of pediatric classic congenital adrenal hyperplasia in children that is in Phase 2 clinical trial; and for females with polycystic ovary syndrome, which is in Phase 2 clinical trial. Spruce Biosciences, Inc. has a license agreement with Eli Lilly and Company to research, develop, and commercialize compounds for various pharmaceutical uses; and collaboration and license agreement with Kaken Pharmaceutical Co. Ltd. to develop, manufacture, and commercialize tildacerfont for the treatment of CAH in Japan. The company was incorporated in 2014 and is headquartered in South San Francisco, California.

About Gemini Therapeutics

Gemini Therapeutics, Inc., a clinical stage precision medicine company, engages in developing various therapeutic compounds for treating genetically defined age-related macular degeneration (AMD). Its lead candidate is GEM103, a recombinant form of the human complement factor H protein to treat dry AMD patients. The company also develops GEM307 for treatment of systemic diseases. Gemini Therapeutics, Inc. was founded in 2015 and is headquartered in Cambridge, Massachusetts.