Solid Biosciences (NASDAQ:SLDB) and bluebird bio (NASDAQ:BLUE) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.
Institutional & Insider Ownership
42.7% of Solid Biosciences shares are owned by institutional investors. Comparatively, 94.3% of bluebird bio shares are owned by institutional investors. 31.2% of Solid Biosciences shares are owned by company insiders. Comparatively, 3.6% of bluebird bio shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings for Solid Biosciences and bluebird bio, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Solid Biosciences | 0 | 2 | 2 | 0 | 2.50 |
| bluebird bio | 0 | 13 | 4 | 0 | 2.24 |
Solid Biosciences currently has a consensus price target of $7.1250, suggesting a potential downside of 19.31%. bluebird bio has a consensus price target of $68.4667, suggesting a potential upside of 145.05%. Given bluebird bio's higher possible upside, analysts clearly believe bluebird bio is more favorable than Solid Biosciences.
Volatility and Risk
Solid Biosciences has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, bluebird bio has a beta of 1.89, meaning that its stock price is 89% more volatile than the S&P 500.
Valuation & Earnings
This table compares Solid Biosciences and bluebird bio's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Solid Biosciences | N/A | N/A | $-117,220,000.00 | ($2.91) | -3.03 |
| bluebird bio | $44.67 million | 42.00 | $-789,610,000.00 | ($14.31) | -1.95 |
Solid Biosciences has higher earnings, but lower revenue than bluebird bio. Solid Biosciences is trading at a lower price-to-earnings ratio than bluebird bio, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Solid Biosciences and bluebird bio's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Solid Biosciences | N/A | -194.22% | -140.40% |
| bluebird bio | -256.84% | -45.78% | -35.14% |
Summary
bluebird bio beats Solid Biosciences on 8 of the 13 factors compared between the two stocks.
