Analyzing Passage Bio (NASDAQ:PASG) & Vir Biotechnology (NASDAQ:VIR)

Vir Biotechnology (NASDAQ:VIR) and Passage Bio (NASDAQ:PASG) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.

Valuation and Earnings

This table compares Vir Biotechnology and Passage Bio”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vir Biotechnology	$74.21 million	11.25	-$521.96 million	($3.61)	-1.66
Passage Bio	N/A	N/A	-$64.77 million	($14.40)	-0.75

Passage Bio has lower revenue, but higher earnings than Vir Biotechnology. Vir Biotechnology is trading at a lower price-to-earnings ratio than Passage Bio, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Vir Biotechnology has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500. Comparatively, Passage Bio has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500.

Profitability

This table compares Vir Biotechnology and Passage Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vir Biotechnology	-2,963.54%	-50.76%	-40.63%
Passage Bio	N/A	-102.09%	-52.97%

Institutional & Insider Ownership

65.3% of Vir Biotechnology shares are owned by institutional investors. Comparatively, 53.5% of Passage Bio shares are owned by institutional investors. 16.0% of Vir Biotechnology shares are owned by company insiders. Comparatively, 4.3% of Passage Bio shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Vir Biotechnology and Passage Bio, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vir Biotechnology	1	1	9	0	2.73
Passage Bio	1	0	3	0	2.50

Vir Biotechnology currently has a consensus target price of $17.30, suggesting a potential upside of 188.33%. Passage Bio has a consensus target price of $42.67, suggesting a potential upside of 292.88%. Given Passage Bio’s higher probable upside, analysts plainly believe Passage Bio is more favorable than Vir Biotechnology.

Summary

Vir Biotechnology beats Passage Bio on 8 of the 13 factors compared between the two stocks.

About Vir Biotechnology

Vir Biotechnology, Inc., an immunology company, develops therapeutic products to treat and prevent serious infectious diseases. Its clinical development pipeline consists of product candidates targeting hepatitis delta virus (HDV), hepatitis B virus (HBV), and human immunodeficiency virus (HIV). The company’s preclinical candidates include those targeting influenza A and B, coronavirus disease 2019, respiratory syncytial virus (RSV) and human metapneumovirus (MPV), and human papillomavirus (HPV). The company has grant agreements with Bill & Melinda Gates Foundation and National Institutes of Health; an option and license agreement with Brii Biosciences Limited; a collaboration and license agreement with Alnylam Pharmaceuticals, Inc.; license agreements with MedImmune, LLC; collaboration with WuXi Biologics (Hong Kong) Limited and Glaxo Wellcome UK Ltd.; and a collaborative research agreement with GlaxoSmithKline Biologicals S.A, as well as license agreement with Sanofi for three clinical-stage masked T-cell engagers (TCEs) and exclusive use of the protease-cleavable masking platform for oncology and infectious diseases. It also has a manufacturing agreement with Samsung Biologics Co.,Ltd. The company was incorporated in 2016 and is headquartered in San Francisco, California.

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.