Financial Survey: Xencor (NASDAQ:XNCR) and BridgeBio Pharma (NASDAQ:BBIO)

BridgeBio Pharma (NASDAQ:BBIO) and Xencor (NASDAQ:XNCR) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Valuation and Earnings

This table compares BridgeBio Pharma and Xencor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BridgeBio Pharma	$713.07 million	21.53	-$724.93 million	($3.57)	-22.00
Xencor	$104.97 million	20.07	-$91.92 million	($2.17)	-13.06

Xencor has lower revenue, but higher earnings than BridgeBio Pharma. BridgeBio Pharma is trading at a lower price-to-earnings ratio than Xencor, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

BridgeBio Pharma has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Xencor has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for BridgeBio Pharma and Xencor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BridgeBio Pharma	1	2	20	0	2.83
Xencor	1	3	5	0	2.44

BridgeBio Pharma presently has a consensus target price of $100.79, indicating a potential upside of 28.33%. Xencor has a consensus target price of $24.86, indicating a potential downside of 12.28%. Given BridgeBio Pharma’s stronger consensus rating and higher possible upside, equities research analysts plainly believe BridgeBio Pharma is more favorable than Xencor.

Profitability

This table compares BridgeBio Pharma and Xencor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BridgeBio Pharma	-97.03%	N/A	-61.19%
Xencor	-155.59%	-28.66%	-20.38%

Institutional & Insider Ownership

99.8% of BridgeBio Pharma shares are owned by institutional investors. 14.2% of BridgeBio Pharma shares are owned by insiders. Comparatively, 5.1% of Xencor shares are owned 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

BridgeBio Pharma beats Xencor on 10 of the 14 factors compared between the two stocks.

About BridgeBio Pharma

BridgeBio Pharma, Inc., a commercial-stage biopharmaceutical company, discovers, creates, tests, and delivers transformative medicines to treat patients who suffer from genetic diseases and cancers. Its products in development programs include AG10, a next-generation oral small molecule near-complete TTR stabilizer that is in Phase 3 clinical trial for the treatment of TTR amyloidosis, or transthyretin amyloid cardiomyopathy (ATTR-CM); low-dose infigratinib, an oral FGFR1-3 selective tyrosine kinase inhibitor, which is in Phase 3 double-blinded, placebo-controlled pivotal study for the treatment option for children with achondroplasia; and BBP-631, an AAV5 gene transfer product candidate that is in Phase 1/2 clinical trial for the treatment of congenital adrenal hyperplasia, or CAH, driven by 21-hydroxylase deficiency, or 21OHD. The company also develops Encaleret, a small molecule antagonist of the calcium sensing receptor, or CaSR, which is in phase 3 clinical trial for treating autosomal dominant hypocalcemia type 1, or ADH1; and BBP-418, a glycosylation substrate pro-drug that is in Phase 3 clinical trial for treating limb-girdle muscular dystrophy type 2I/R9 (LGMD2I/R9). In addition, it engages in developing products for mendelian, oncology, and gene therapy diseases. BridgeBio Pharma, Inc. has license and collaboration agreements with the Leland Stanford Junior University; and Leidos Biomedical Research, Inc. The company was founded in 2015 and is headquartered in Palo Alto, California.

About Xencor

Xencor, Inc., a clinical stage biopharmaceutical company, focuses on the discovery and development of engineered monoclonal antibody and cytokine therapeutics to treat patients with cancer and autoimmune diseases. The company provides Sotrovimab that targets the SARS-CoV-2 virus; Ultomiris for the treatment of patients with paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome; and Monjuvi for the treatment of patients with relapsed or refractory diffuse large B-cell lymphoma. It develops Plamotamab, a bispecific antibody, which is in Phase I clinical trial to treat non-Hodgkin lymphoma; Vudalimab, a bispecific antibody, which is in Phase II clinical trial to treat metastatic castration-resistant prostate cancer and other solid tumor types. The company is also developing XmAb306, which is in Phase I clinical trial to treat solid tumors; XmAb104, which is in Phase II clinical trial to treat patients with selected solid tumors; XmAb564 that is in Phase Ia clinical trial to treat autoimmune diseases; AMG 509, which is in Phase I clinical trial to treat prostate cancer; XmAb819 for patients with renal cell carcinoma; XmAb541 for the treatment of ovarian cancer; and XmAb662 which is in Phase I clinical trial to treat patients with solid tumors. In addition, the company develops VIR-3434, which is in Phase II clinical trial for patients with hepatitis B virus infection; and VIR-2482 that is in Phase 2 clinical trial to trat hepatitis B virus. The company develops AIMab7195 to reduce blood serum levels of IgE that mediates allergic responses and allergic disease; Obexelimab to treat autoimmune disease; and Xpro1595 to treat patients with Alzheimer's disease, and depression. It has a license agreement with Caris Life Sciences. Xencor, Inc. was incorporated in 1997 and is headquartered in Pasadena, California.