Head-To-Head Analysis: Galapagos (NASDAQ:GLPG) versus Q32 Bio (NASDAQ:QTTB)

Galapagos (NASDAQ:GLPG) and Q32 Bio (NASDAQ:QTTB) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Profitability

This table compares Galapagos and Q32 Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Galapagos	N/A	N/A	N/A
Q32 Bio	N/A	-447.33%	-59.77%

Volatility & Risk

Galapagos has a beta of 0.07, suggesting that its share price is 93% less volatile than the S&P 500. Comparatively, Q32 Bio has a beta of -0.07, suggesting that its share price is 107% less volatile than the S&P 500.

Insider & Institutional Ownership

32.5% of Galapagos shares are owned by institutional investors. Comparatively, 31.3% of Q32 Bio shares are owned by institutional investors. 2.9% of Galapagos shares are owned by insiders. Comparatively, 40.0% of Q32 Bio shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Galapagos and Q32 Bio”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galapagos	$298.31 million	N/A	$80.16 million	N/A	N/A
Q32 Bio	$1.16 million	23.24	-$47.73 million	($4.94)	-0.45

Galapagos has higher revenue and earnings than Q32 Bio.

Analyst Recommendations

This is a breakdown of recent recommendations for Galapagos and Q32 Bio, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galapagos	4	4	0	0	1.50
Q32 Bio	0	6	2	0	2.25

Galapagos currently has a consensus price target of $25.33, suggesting a potential downside of 22.41%. Q32 Bio has a consensus price target of $12.17, suggesting a potential upside of 450.53%. Given Q32 Bio’s stronger consensus rating and higher possible upside, analysts clearly believe Q32 Bio is more favorable than Galapagos.

Summary

Galapagos beats Q32 Bio on 6 of the 10 factors compared between the two stocks.

About Galapagos

Galapagos NV, a biotechnology company, develops medicines focusing on oncology and immunology primarily in the United States and Europe. The company's pipeline products comprise GLPG3667 that has completed phase 1b trial; GLPG5101, a CD19 CAR-T product candidate manufactured at point-of-care, currently in Phase1/2 trial in relapsed/refractory non-hodgkin lymphoma; GLPG5201, a CD19 CAR-T product candidates manufactured at point-of-care, currently in phase 1/2 trial in replapsed/refractory chronic lymphocytic leukemia; and GLPG5301, a BCMA CAR-T product candidate manufactured at point-of-care, currently in phase 1/2 in relapsed/refractory multiple myeloma. The company has collaboration agreements with Gilead Sciences, Inc.; and AbbVie S.à r.l. Galapagos NV was incorporated in 1999 and is headquartered in Mechelen, Belgium.

About Q32 Bio

Q32 Bio Inc., a clinical-stage biotechnology company, develops biologic therapeutics to restore healthy immune balance in patients with autoimmune and inflammatory diseases driven by pathological immune dysfunction in the United States. Its lead product candidate is ADX-097, a humanized anti-C3d monoclonal antibody fusion protein to restore complement regulation, which has completed Phase I clinical trial for the treatment of renal and other complement-mediated diseases of high unmet need, including lupus nephritis, immunoglobulin A nephropathy, complement component 3 glomerulopathy, and anti-neutrophil cytoplasmic antibody-associated vasculitis. The company is also developing Bempikibart (ADX-914), a fully human antiinterleukin-7 receptor alpha antagonist monoclonal antibody designed to re-regulate adaptive immune function by blocking signaling mediated by interleukin-7 and thymic stromal lymphopoietin that is Phase II clinical trial for the treatment of atopic dermatitis and alopecia areata. Q32 Bio Inc. was formerly known as AdMIRx Inc. and changed its name to Q32 Bio Inc. in April 2020. The company was founded in 2017 and is based in Waltham, Massachusetts.