Financial Analysis: BridgeBio Pharma (NASDAQ:BBIO) & Sol-Gel Technologies (NASDAQ:SLGL)

BridgeBio Pharma (NASDAQ:BBIO) and Sol-Gel Technologies (NASDAQ:SLGL) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.

Volatility & Risk

BridgeBio Pharma has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Sol-Gel Technologies has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Insider and Institutional Ownership

99.9% of BridgeBio Pharma shares are owned by institutional investors. Comparatively, 26.2% of Sol-Gel Technologies shares are owned by institutional investors. 18.2% of BridgeBio Pharma shares are owned by company insiders. Comparatively, 66.5% of Sol-Gel Technologies 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 Recommendations

This is a breakdown of recent ratings and recommmendations for BridgeBio Pharma and Sol-Gel Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BridgeBio Pharma	0	0	17	0	3.00
Sol-Gel Technologies	0	0	0	0	0.00

BridgeBio Pharma presently has a consensus price target of $61.3529, indicating a potential upside of 25.01%. Given BridgeBio Pharma’s stronger consensus rating and higher probable upside, research analysts plainly believe BridgeBio Pharma is more favorable than Sol-Gel Technologies.

Profitability

This table compares BridgeBio Pharma and Sol-Gel Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BridgeBio Pharma	-329.25%	N/A	-85.69%
Sol-Gel Technologies	-14.25%	-11.80%	-9.39%

Earnings and Valuation

This table compares BridgeBio Pharma and Sol-Gel Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BridgeBio Pharma	$221.90 million	42.28	-$535.76 million	($4.09)	-12.00
Sol-Gel Technologies	$11.54 million	5.48	-$10.58 million	($1.23)	-18.43

Sol-Gel Technologies has lower revenue, but higher earnings than BridgeBio Pharma. Sol-Gel Technologies is trading at a lower price-to-earnings ratio than BridgeBio Pharma, indicating that it is currently the more affordable of the two stocks.

Summary

BridgeBio Pharma beats Sol-Gel Technologies on 9 of the 14 factors compared between the two stocks.

About BridgeBio Pharma

BridgeBio Pharma, Inc., a commercial-stage biopharmaceutical company, discovers, creates, tests, and delivers transformative medicines to treat patients who suffer from genetic diseases and cancers. Its products in development programs include AG10, a next-generation oral small molecule near-complete TTR stabilizer that is in Phase 3 clinical trial for the treatment of TTR amyloidosis, or transthyretin amyloid cardiomyopathy (ATTR-CM); low-dose infigratinib, an oral FGFR1-3 selective tyrosine kinase inhibitor, which is in Phase 3 double-blinded, placebo-controlled pivotal study for the treatment option for children with achondroplasia; and BBP-631, an AAV5 gene transfer product candidate that is in Phase 1/2 clinical trial for the treatment of congenital adrenal hyperplasia, or CAH, driven by 21-hydroxylase deficiency, or 21OHD. The company also develops Encaleret, a small molecule antagonist of the calcium sensing receptor, or CaSR, which is in phase 3 clinical trial for treating autosomal dominant hypocalcemia type 1, or ADH1; and BBP-418, a glycosylation substrate pro-drug that is in Phase 3 clinical trial for treating limb-girdle muscular dystrophy type 2I/R9 (LGMD2I/R9). In addition, it engages in developing products for mendelian, oncology, and gene therapy diseases. BridgeBio Pharma, Inc. has license and collaboration agreements with the Leland Stanford Junior University; and Leidos Biomedical Research, Inc. The company was founded in 2015 and is headquartered in Palo Alto, California.

About Sol-Gel Technologies

Sol-Gel Technologies Ltd., together with its subsidiary Sol-Gel Technologies Inc., develops topical dermatological drugs for patients with severe skin conditions in Israel. The company offers Twyneo, a once-daily, non-antibiotic topical cream for the treatment of acne vulgaris; and Epsolay, a once-daily topical cream for the treatment of papulopustular (subtype II) rosacea. It also develops SGT-610 that is in Phase 3 clinical trials for the treatment of Gorlin Syndrome; and SGT-210, which has completed Phase I clinical trial, to treat rare hyperkeratinization disorders, such as Darier, PC, PPK, Olmsted, etc. In addition, the company is also involved in the development of generic topical dermatological drug products. It has collaboration with Padagis Israel Pharmaceuticals Ltd; and license agreements with Galderma Holding SA and Searchlight Pharma Inc. Sol-Gel Technologies Ltd. was incorporated in 1997 and is headquartered in Ness Ziona, Israel.