SpringWorks Therapeutics (NASDAQ:SWTX – Get Free Report) and Beam Therapeutics (NASDAQ:BEAM – Get Free Report) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.
Volatility and Risk
SpringWorks Therapeutics has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Beam Therapeutics has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500.
Valuation and Earnings
This table compares SpringWorks Therapeutics and Beam Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SpringWorks Therapeutics | $191.59 million | 14.82 | -$325.10 million | ($3.48) | -10.89 |
| Beam Therapeutics | $63.52 million | 26.71 | -$132.53 million | ($4.58) | -3.71 |
Analyst Ratings
This is a summary of recent ratings for SpringWorks Therapeutics and Beam Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SpringWorks Therapeutics | 0 | 0 | 5 | 0 | 3.00 |
| Beam Therapeutics | 0 | 2 | 10 | 2 | 3.00 |
SpringWorks Therapeutics presently has a consensus price target of $73.20, suggesting a potential upside of 93.20%. Beam Therapeutics has a consensus price target of $49.45, suggesting a potential upside of 190.91%. Given Beam Therapeutics’ higher probable upside, analysts plainly believe Beam Therapeutics is more favorable than SpringWorks Therapeutics.
Profitability
This table compares SpringWorks Therapeutics and Beam Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SpringWorks Therapeutics | -134.73% | -46.74% | -41.12% |
| Beam Therapeutics | -41.07% | -16.22% | -10.94% |
Insider & Institutional Ownership
99.7% of Beam Therapeutics shares are held by institutional investors. 7.6% of SpringWorks Therapeutics shares are held by company insiders. Comparatively, 4.2% of Beam Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Beam Therapeutics beats SpringWorks Therapeutics on 11 of the 14 factors compared between the two stocks.
About SpringWorks Therapeutics
SpringWorks Therapeutics, Inc., a commercial-stage biopharmaceutical company, engages in the development and commercialization of medicines for underserved patient populations suffering from rare diseases and cancer. Its lead product candidate is OGSIVEO (nirogacestat), an oral small molecule gamma secretase inhibitor that is in Phase III DeFi trial for the treatment of desmoid tumors; and Nirogacestat, is also in Phase 2 clinical development as a monotherapy for the treatment of ovarian granulosa cell tumors (GCT), a subtype of ovarian cancer. The company is also involved in the development of mirdametinib, an oral small molecule MEK inhibitor that is in Phase 2b clinical trials for the treatment of neurofibromatosis type 1-associated plexiform neurofibromas (NF1-PN); mirdametinib + lifirafenib, a combination therapy that is in Phase 1b clinical trial in patients with advanced or refractory solid tumors; and mirdametinib in monotherapy and combination approaches to treat other genetically defined solid tumors, including Phase 1/2 clinical trial for the treatment of pediatric and young adult patients with low-grade gliomas. In addition, it develops Brimarafenib (BGB-3245), an oral selective small molecule inhibitor of monomeric and dimeric forms of activating BRAF mutations. The company has collaborations with BeiGene, Ltd. and GlaxoSmithKline LLC; and license agreements with Pfizer Inc. for nirogacestat and mirdametinib. It also has a license agreement with Katholieke Universiteit Leuven and the Flanders Institute for Biotechnology for a portfolio of novel small molecule inhibitors of the TEA Domain; and Dana-Farber Cancer Institute for a portfolio of novel small molecule inhibitors of Epidermal Growth Factor Receptor. The company was founded in 2017 and is headquartered in Stamford, Connecticut.
About Beam Therapeutics
Beam Therapeutics Inc., a biotechnology company, engages in the development of precision genetic medicines for patients suffering from serious diseases in the United States. It develops BEAM-101 for the treatment of sickle cell disease or beta-thalassemia; and BEAM-302, a liver-targeting LNP formulation to treat severe alpha-1 antitrypsin deficiency; BEAM-201, an anti-CD7 CAR-T product candidate, which is in Phase 1/2 clinical trials for the treatment of refractory T-cell acute lymphoblastic leukemia/T cell lymphoblastic lymphoma; and BEAM-301, a liver-targeting LNP formulation for the treatment of glycogen storage disease 1a. The company has research collaboration agreement with Pfizer Inc., focus on in vivo base editing programs for targets rare genetic diseases of the liver, muscle, and central nervous system; Apellis Pharmaceuticals to conduct preclinical research on target specific genes within the complement system in various organs, including the eye, liver, and brain; Verve Therapeutics, Inc., for cardiovascular disease treatments; Sana Biotechnology, Inc., to research, develop, and commercialize rights to CRISPR Cas12b for cell therapy programs; and Orbital Therapeutics design RNA for the prevention, treatment or diagnosis of human disease. Beam Therapeutics Inc. was incorporated in 2017 and is based in Cambridge, Massachusetts.
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