Nuvation Bio (NYSE:NUVB – Get Free Report) and Generation Bio (NASDAQ:GBIO – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.
Valuation and Earnings
This table compares Nuvation Bio and Generation Bio”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nuvation Bio | $14.36 million | 124.34 | -$567.94 million | ($0.63) | -8.28 |
| Generation Bio | $19.89 million | 1.87 | -$131.67 million | ($10.82) | -0.51 |
Analyst Ratings
This is a summary of current ratings and price targets for Nuvation Bio and Generation Bio, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nuvation Bio | 1 | 0 | 6 | 1 | 2.88 |
| Generation Bio | 1 | 1 | 2 | 0 | 2.25 |
Nuvation Bio presently has a consensus target price of $7.86, suggesting a potential upside of 50.66%. Generation Bio has a consensus target price of $10.67, suggesting a potential upside of 93.59%. Given Generation Bio’s higher possible upside, analysts plainly believe Generation Bio is more favorable than Nuvation Bio.
Profitability
This table compares Nuvation Bio and Generation Bio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nuvation Bio | -1,413.43% | -46.14% | -36.04% |
| Generation Bio | -341.12% | -91.07% | -33.65% |
Volatility and Risk
Nuvation Bio has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, Generation Bio has a beta of 2.53, suggesting that its stock price is 153% more volatile than the S&P 500.
Insider and Institutional Ownership
61.7% of Nuvation Bio shares are held by institutional investors. Comparatively, 95.2% of Generation Bio shares are held by institutional investors. 29.9% of Nuvation Bio shares are held by insiders. Comparatively, 21.8% of Generation Bio shares are held by 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.
Summary
Generation Bio beats Nuvation Bio on 8 of the 15 factors compared between the two stocks.
About Nuvation Bio
Nuvation Bio Inc., a clinical-stage biopharmaceutical company, focuses on the development of therapeutic candidates for oncology. The company's lead product candidate is NUV-868, a BD2 selective oral small molecule BET inhibitor that epigenetically regulates proteins that control tumor growth and differentiation, including oncogenes comprising c-myc; NUV-1156, an AR binder Xtandi that address advanced stage prostate cancers with the potential to move into earlier lines typically treated with surgical prostatectomy; and drug-drug conjugate (DDC) platform which leverages a novel therapeutic approach within the drug-conjugate class of anti-cancer therapies to deliver anti-cancer therapeutics to cancer cells, as well as NUV-1176, a PARP inhibitor to address ER+ breast and ovarian cancer. The company was founded in 2018 and is headquartered in New York, New York.
About Generation Bio
Generation Bio Co. develops non-viral genetic medicines for the treatment of rare and prevalent diseases. The company develops cell-targeted lipid nanoparticle (ctLNP) platform, a modular delivery system for nucleic acids to avoid off-target clearance by the liver and spleen that enables ctLNPs to persist in systemic circulation, which allows for highly selective and potent ligand-driven targeting to specific tissues and cell types; and novel immune-quiet DNA (iqDNA) to enable long-lasting high levels of gene expression from non-integrating episomes and avoids innate immune sensors that have long prevented DNA from use in non-viral systems. It uses its platform for developing a portfolio of programs for treating cancer, autoimmune, hematologic disorders, prioritizing sickle cell, beta-thalassemia, and hemophilia A diseases, as well as for other tissues and cell types, including retina, skeletal muscle, and central nervous system. The company was formerly known as Torus Therapeutics, Inc. and changed its name to Generation Bio Co. in November 2017. Generation Bio Co. was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.
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