bluebird bio (NASDAQ: BLUE) and Aldeyra Therapeutics (NASDAQ:ALDX) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Risk & Volatility

bluebird bio has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500. Comparatively, Aldeyra Therapeutics has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500.

Profitability

This table compares bluebird bio and Aldeyra Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
bluebird bio -1,080.59% -32.19% -25.23%
Aldeyra Therapeutics N/A -80.41% -70.58%

Valuation & Earnings

This table compares bluebird bio and Aldeyra Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
bluebird bio $26.65 million 220.25 -$259.89 million ($7.36) -17.49
Aldeyra Therapeutics N/A N/A -$19.82 million ($1.46) -5.51

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for bluebird bio and Aldeyra Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
bluebird bio 2 6 13 0 2.52
Aldeyra Therapeutics 0 0 4 0 3.00

bluebird bio presently has a consensus price target of $107.33, suggesting a potential downside of 16.64%. Aldeyra Therapeutics has a consensus price target of $18.75, suggesting a potential upside of 132.92%. Given Aldeyra Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Aldeyra Therapeutics is more favorable than bluebird bio.

Institutional & Insider Ownership

49.1% of Aldeyra Therapeutics shares are owned by institutional investors. 3.9% of bluebird bio shares are owned by company insiders. Comparatively, 28.4% of Aldeyra Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Aldeyra Therapeutics beats bluebird bio on 7 of the 12 factors compared between the two stocks.

bluebird bio Company Profile

bluebird bio, Inc. is a clinical-stage biotechnology company. The Company is focused on developing gene therapies for severe diseases and cancer. With its lentiviral-based gene therapy and gene editing capabilities, it has built an integrated product platform with various applications in these areas. The Company’s clinical programs in severe genetic diseases include its LentiGlobin product candidate to treat transfusion-dependent b-thalassemia and to treat severe sickle cell disease (SCD) and its Lenti-D product candidate to treat cerebral adrenoleukodystrophy (CALD). Its programs in oncology focuses on developing T cell-based immunotherapies, including chimeric antigen receptor (CAR) and T cell receptor (TCR) T cell therapies. bb2121, its lead product candidate in oncology, is a CAR T cell product candidate for the treatment of multiple myeloma. It also has discovery research programs utilizing megaTALs/homing endonuclease gene editing technologies for use across its pipeline.

Aldeyra Therapeutics Company Profile

Aldeyra Therapeutics, Inc., formerly Aldexa Therapeutics, Inc., is a biotechnology company. The Company’s principal activities include raising capital and research and development activities. The Company’s segment is the identification and development of a treatment for diseases related to high levels of aldehydes. The Company is focused on the development of products for diseases caused by inflammation and inborn errors of metabolism that are caused by naturally occurring toxic and pro-inflammatory chemical species known as aldehydes. The Company has developed a series of aldehyde traps, molecules that are designed to sequester and allow for the degradation of aldehydes. The Company’s aldehyde trap, NS2, is a product candidate that is under development for the treatment of allergic conjunctivitis and related rare allergic ocular diseases, noninfectious anterior uveitis, sjogren-larsson syndrome (SLS) and succinic semi-aldehyde dehydrogenase deficiency.

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