Translate Bio (NASDAQ:TBIO) and Vir Biotechnology (NASDAQ:VIR) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.
Profitability
This table compares Translate Bio and Vir Biotechnology's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Translate Bio | -70.38% | -27.54% | -12.82% |
| Vir Biotechnology | -339.61% | -47.11% | -39.44% |
Volatility & Risk
Translate Bio has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Vir Biotechnology has a beta of -0.99, indicating that its stock price is 199% less volatile than the S&P 500.
Institutional and Insider Ownership
92.9% of Translate Bio shares are held by institutional investors. Comparatively, 54.5% of Vir Biotechnology shares are held by institutional investors. 12.3% of Translate Bio shares are held by company insiders. Comparatively, 37.2% of Vir Biotechnology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Translate Bio and Vir Biotechnology's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Translate Bio | $7.80 million | 182.53 | $-113,290,000.00 | ($1.84) | -10.29 |
| Vir Biotechnology | $8.09 million | 726.46 | $-174,680,000.00 | ($5.76) | -7.97 |
Translate Bio has higher earnings, but lower revenue than Vir Biotechnology. Translate Bio is trading at a lower price-to-earnings ratio than Vir Biotechnology, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Translate Bio and Vir Biotechnology, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Translate Bio | 0 | 4 | 7 | 0 | 2.64 |
| Vir Biotechnology | 2 | 0 | 5 | 0 | 2.43 |
Translate Bio presently has a consensus price target of $25.70, suggesting a potential upside of 35.76%. Vir Biotechnology has a consensus price target of $66.00, suggesting a potential upside of 43.73%. Given Vir Biotechnology's higher possible upside, analysts clearly believe Vir Biotechnology is more favorable than Translate Bio.
Summary
Translate Bio beats Vir Biotechnology on 10 of the 14 factors compared between the two stocks.
