Passage Bio (NASDAQ:PASG – Get Free Report) and PepGen (NASDAQ:PEPG – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.
Insider and Institutional Ownership
53.5% of Passage Bio shares are owned by institutional investors. Comparatively, 58.0% of PepGen shares are owned by institutional investors. 5.0% of Passage Bio shares are owned by insiders. Comparatively, 5.2% of PepGen shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Passage Bio and PepGen, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Passage Bio | 1 | 0 | 3 | 0 | 2.50 |
| PepGen | 2 | 0 | 4 | 0 | 2.33 |
Earnings and Valuation
This table compares Passage Bio and PepGen”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Passage Bio | N/A | N/A | -$64.77 million | ($14.40) | -0.64 |
| PepGen | N/A | N/A | -$89.98 million | ($2.82) | -1.93 |
PepGen is trading at a lower price-to-earnings ratio than Passage Bio, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Passage Bio and PepGen’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Passage Bio | N/A | -102.09% | -52.97% |
| PepGen | N/A | -84.15% | -65.59% |
Risk & Volatility
Passage Bio has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500. Comparatively, PepGen has a beta of 1.91, meaning that its stock price is 91% more volatile than the S&P 500.
Summary
PepGen beats Passage Bio on 6 of the 11 factors compared between the two stocks.
About Passage Bio
Passage Bio, Inc., a genetic medicines company, develops gene therapies for central nervous system diseases. It develops PBGM01, a functional GLB1 gene encoding ß-galactosidase for infantile GM1; PBFT02, a functional granulin (GRN) and gene encoding progranulin (PGRN) for the treatment of FTD caused by progranulin deficiency; and PBKR03, a functional GALC gene encoding the hydrolytic enzyme galactosylceramidase for infantile Krabbe disease. The company develops PBML04 for the treatment of metachromatic leukodystrophy; PBAL05 for the treatment of amyotrophic lateral sclerosis; and other program for huntington's disease. It has a strategic research collaboration with the Trustees of the University of Pennsylvania's Gene Therapy Program; and collaboration agreement, and a development services and clinical supply agreement with Catalent Maryland, Inc. Passage Bio, Inc. was incorporated in 2017 and is headquartered in Philadelphia, Pennsylvania.
About PepGen
PepGen Inc., a clinical-stage biotechnology company, focuses on the development of oligonucleotide therapeutics for use in the treatment of severe neuromuscular and neurologic diseases. Its lead product candidate is PGN-EDO51, an EDO peptide that is in Phase 2 clinical trial to treat Duchenne muscular dystrophy (DMD) patients. The company is also developing PGN-EDODM1, an EDO peptide-conjugated PMO, which is in Phase 1 clinical trial for the treatment of myotonic dystrophy type 1, as well as EDO therapeutic candidates, such as PGN-EDO53, PGN-EDO45, and PGN-EDO44 for the treatment of DMD. PepGen Inc. was founded in 2018 and is based in Boston, Massachusetts.
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