Novavax (NASDAQ:NVAX) and Beam Therapeutics (NASDAQ:BEAM) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Earnings and Valuation
This table compares Novavax and Beam Therapeutics' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Novavax | $18.66 million | 695.25 | $-132,690,000.00 | ($5.80) | -30.28 |
| Beam Therapeutics | $20,000.00 | 214,959.27 | $-78,330,000.00 | ($14.05) | -4.90 |
Beam Therapeutics has lower revenue, but higher earnings than Novavax. Novavax is trading at a lower price-to-earnings ratio than Beam Therapeutics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Novavax and Beam Therapeutics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Novavax | -133.10% | -1,346.17% | -45.85% |
| Beam Therapeutics | -529,075.00% | -103.41% | -48.05% |
Institutional & Insider Ownership
49.9% of Novavax shares are owned by institutional investors. Comparatively, 49.8% of Beam Therapeutics shares are owned by institutional investors. 3.3% of Novavax shares are owned by company insiders. Comparatively, 0.7% of Beam Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Novavax and Beam Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Novavax | 1 | 0 | 6 | 0 | 2.71 |
| Beam Therapeutics | 0 | 3 | 3 | 0 | 2.50 |
Novavax currently has a consensus target price of $229.6429, suggesting a potential upside of 30.74%. Beam Therapeutics has a consensus target price of $96.00, suggesting a potential upside of 39.49%. Given Beam Therapeutics' higher possible upside, analysts plainly believe Beam Therapeutics is more favorable than Novavax.
Summary
Novavax beats Beam Therapeutics on 8 of the 13 factors compared between the two stocks.
