Aerie Pharmaceuticals (NASDAQ:AERI) and LogicBio Therapeutics (NASDAQ:LOGC) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.
Profitability
This table compares Aerie Pharmaceuticals and LogicBio Therapeutics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Aerie Pharmaceuticals | -231.05% | -135.57% | -37.23% |
| LogicBio Therapeutics | N/A | -117.64% | -76.85% |
Analyst Ratings
This is a breakdown of current ratings and price targets for Aerie Pharmaceuticals and LogicBio Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Aerie Pharmaceuticals | 1 | 1 | 9 | 0 | 2.73 |
| LogicBio Therapeutics | 0 | 0 | 3 | 0 | 3.00 |
Aerie Pharmaceuticals presently has a consensus target price of $25.50, suggesting a potential upside of 32.47%. LogicBio Therapeutics has a consensus target price of $18.50, suggesting a potential upside of 135.97%. Given LogicBio Therapeutics' stronger consensus rating and higher possible upside, analysts plainly believe LogicBio Therapeutics is more favorable than Aerie Pharmaceuticals.
Earnings and Valuation
This table compares Aerie Pharmaceuticals and LogicBio Therapeutics' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Aerie Pharmaceuticals | $69.89 million | 12.92 | $-199,580,000.00 | ($3.40) | -5.66 |
| LogicBio Therapeutics | N/A | N/A | $-40,130,000.00 | ($1.78) | -4.40 |
LogicBio Therapeutics has lower revenue, but higher earnings than Aerie Pharmaceuticals. Aerie Pharmaceuticals is trading at a lower price-to-earnings ratio than LogicBio Therapeutics, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
99.9% of Aerie Pharmaceuticals shares are held by institutional investors. Comparatively, 33.8% of LogicBio Therapeutics shares are held by institutional investors. 9.7% of Aerie Pharmaceuticals shares are held by insiders. Comparatively, 23.4% of LogicBio Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility and Risk
Aerie Pharmaceuticals has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, LogicBio Therapeutics has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.
Summary
LogicBio Therapeutics beats Aerie Pharmaceuticals on 8 of the 13 factors compared between the two stocks.
