Dicerna Pharmaceuticals (NASDAQ:DRNA) and 89bio (NASDAQ:ETNB) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.
Institutional & Insider Ownership
80.6% of Dicerna Pharmaceuticals shares are held by institutional investors. Comparatively, 80.6% of 89bio shares are held by institutional investors. 11.3% of Dicerna Pharmaceuticals shares are held by insiders. Comparatively, 18.1% of 89bio shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Dicerna Pharmaceuticals and 89bio's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Dicerna Pharmaceuticals | -88.81% | -71.72% | -16.60% |
89bio | N/A | -49.56% | -46.52% |
Earnings and Valuation
This table compares Dicerna Pharmaceuticals and 89bio's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Dicerna Pharmaceuticals | $23.90 million | 83.31 | $-120,460,000.00 | ($1.76) | -14.82 |
89bio | N/A | N/A | $-57,420,000.00 | ($24.49) | -1.07 |
89bio has lower revenue, but higher earnings than Dicerna Pharmaceuticals. Dicerna Pharmaceuticals is trading at a lower price-to-earnings ratio than 89bio, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Dicerna Pharmaceuticals and 89bio, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Dicerna Pharmaceuticals | 0 | 0 | 6 | 0 | 3.00 |
89bio | 0 | 0 | 6 | 1 | 3.14 |
Dicerna Pharmaceuticals currently has a consensus price target of $37.8333, suggesting a potential upside of 45.01%. 89bio has a consensus price target of $62.4286, suggesting a potential upside of 137.55%. Given 89bio's stronger consensus rating and higher probable upside, analysts clearly believe 89bio is more favorable than Dicerna Pharmaceuticals.
Summary
89bio beats Dicerna Pharmaceuticals on 8 of the 12 factors compared between the two stocks.