SpringWorks Therapeutics (NASDAQ:SWTX) and Coherus BioSciences (NASDAQ:CHRS) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Risk & Volatility
SpringWorks Therapeutics has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Coherus BioSciences has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500.
Earnings & Valuation
This table compares SpringWorks Therapeutics and Coherus BioSciences' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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SpringWorks Therapeutics | N/A | N/A | $-58,310,000.00 | ($3.55) | -20.96 |
Coherus BioSciences | $356.07 million | 3.24 | $89.83 million | $1.23 | 12.87 |
Coherus BioSciences has higher revenue and earnings than SpringWorks Therapeutics. SpringWorks Therapeutics is trading at a lower price-to-earnings ratio than Coherus BioSciences, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for SpringWorks Therapeutics and Coherus BioSciences, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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SpringWorks Therapeutics | 0 | 0 | 3 | 0 | 3.00 |
Coherus BioSciences | 0 | 1 | 4 | 0 | 2.80 |
SpringWorks Therapeutics presently has a consensus target price of $91.00, indicating a potential upside of 22.31%. Coherus BioSciences has a consensus target price of $26.50, indicating a potential upside of 67.40%. Given Coherus BioSciences' higher possible upside, analysts plainly believe Coherus BioSciences is more favorable than SpringWorks Therapeutics.
Profitability
This table compares SpringWorks Therapeutics and Coherus BioSciences' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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SpringWorks Therapeutics | N/A | -24.48% | -23.58% |
Coherus BioSciences | 33.06% | 90.98% | 27.33% |
Institutional and Insider Ownership
76.3% of SpringWorks Therapeutics shares are owned by institutional investors. 51.2% of SpringWorks Therapeutics shares are owned by company insiders. Comparatively, 15.9% of Coherus BioSciences shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Coherus BioSciences beats SpringWorks Therapeutics on 10 of the 13 factors compared between the two stocks.