Generation Bio (NASDAQ:GBIO – Get Free Report) and Genelux (NASDAQ:GNLX – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.
Risk and Volatility
Generation Bio has a beta of 2.05, indicating that its stock price is 105% more volatile than the S&P 500. Comparatively, Genelux has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500.
Insider & Institutional Ownership
95.2% of Generation Bio shares are held by institutional investors. Comparatively, 37.3% of Genelux shares are held by institutional investors. 21.8% of Generation Bio shares are held by insiders. Comparatively, 8.8% of Genelux shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Generation Bio | -410.13% | -94.82% | -34.13% |
| Genelux | N/A | -129.29% | -97.37% |
Analyst Ratings
This is a summary of recent recommendations for Generation Bio and Genelux, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Generation Bio | 1 | 3 | 3 | 0 | 2.29 |
| Genelux | 1 | 0 | 3 | 0 | 2.50 |
Generation Bio currently has a consensus price target of $8.88, indicating a potential upside of 66.20%. Genelux has a consensus price target of $21.00, indicating a potential upside of 778.66%. Given Genelux’s stronger consensus rating and higher probable upside, analysts clearly believe Genelux is more favorable than Generation Bio.
Earnings & Valuation
This table compares Generation Bio and Genelux”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Generation Bio | $19.89 million | 1.81 | -$131.67 million | ($9.34) | -0.57 |
| Genelux | $10,000.00 | 9,093.95 | -$29.87 million | ($0.88) | -2.72 |
Genelux has lower revenue, but higher earnings than Generation Bio. Genelux is trading at a lower price-to-earnings ratio than Generation Bio, indicating that it is currently the more affordable of the two stocks.
Summary
Generation Bio beats Genelux on 7 of the 13 factors compared between the two stocks.
About Generation Bio
Generation Bio Co. develops non-viral genetic medicines for the treatment of rare and prevalent diseases. The company develops cell-targeted lipid nanoparticle (ctLNP) platform, a modular delivery system for nucleic acids to avoid off-target clearance by the liver and spleen that enables ctLNPs to persist in systemic circulation, which allows for highly selective and potent ligand-driven targeting to specific tissues and cell types; and novel immune-quiet DNA (iqDNA) to enable long-lasting high levels of gene expression from non-integrating episomes and avoids innate immune sensors that have long prevented DNA from use in non-viral systems. It uses its platform for developing a portfolio of programs for treating cancer, autoimmune, hematologic disorders, prioritizing sickle cell, beta-thalassemia, and hemophilia A diseases, as well as for other tissues and cell types, including retina, skeletal muscle, and central nervous system. The company was formerly known as Torus Therapeutics, Inc. and changed its name to Generation Bio Co. in November 2017. Generation Bio Co. was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.
About Genelux
Genelux Corporation, a clinical-stage biopharmaceutical company, focuses on developing next-generation oncolytic viral immunotherapies for patients suffering from aggressive and/or difficult-to-treat solid tumor types. Its lead product candidate is Olvi-Vec, a proprietary modified strain of the vaccinia virus for the treatment of ovarian cancer and non-small cell lung cancer. The company is also developing V2ACT Immunotherapy for treating pancreatic cancer. Genelux Corporation has a licensing agreement with ELIAS Animal Health, LLC for V-VET1, a clinical stage animal health product candidate. The company was incorporated in 2001 and is headquartered in Westlake Village, California.
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