BridgeBio Pharma (NASDAQ:BBIO) and Deciphera Pharmaceuticals (NASDAQ:DCPH) are both mid-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.
Earnings & Valuation
This table compares BridgeBio Pharma and Deciphera Pharmaceuticals' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| BridgeBio Pharma | $40.56 million | 200.11 | $-260,590,000.00 | ($2.48) | -21.97 |
| Deciphera Pharmaceuticals | $25 million | 100.98 | $-192,260,000.00 | ($4.48) | -9.78 |
Deciphera Pharmaceuticals has lower revenue, but higher earnings than BridgeBio Pharma. BridgeBio Pharma is trading at a lower price-to-earnings ratio than Deciphera Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares BridgeBio Pharma and Deciphera Pharmaceuticals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| BridgeBio Pharma | N/A | -109.88% | -48.54% |
| Deciphera Pharmaceuticals | N/A | -45.02% | -40.12% |
Institutional & Insider Ownership
95.5% of BridgeBio Pharma shares are owned by institutional investors. Comparatively, 73.6% of Deciphera Pharmaceuticals shares are owned by institutional investors. 40.3% of BridgeBio Pharma shares are owned by company insiders. Comparatively, 7.0% of Deciphera Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
BridgeBio Pharma has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Deciphera Pharmaceuticals has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for BridgeBio Pharma and Deciphera Pharmaceuticals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| BridgeBio Pharma | 0 | 1 | 9 | 0 | 2.90 |
| Deciphera Pharmaceuticals | 0 | 3 | 7 | 0 | 2.70 |
BridgeBio Pharma presently has a consensus price target of $72.8889, suggesting a potential upside of 33.77%. Deciphera Pharmaceuticals has a consensus price target of $70.30, suggesting a potential upside of 60.47%. Given Deciphera Pharmaceuticals' higher probable upside, analysts clearly believe Deciphera Pharmaceuticals is more favorable than BridgeBio Pharma.
Summary
BridgeBio Pharma beats Deciphera Pharmaceuticals on 7 of the 13 factors compared between the two stocks.
