Financial Analysis: NewAmsterdam Pharma (NASDAQ:NAMS) versus Rallybio (NASDAQ:RLYB)

NewAmsterdam Pharma (NASDAQ:NAMS – Get Free Report) and Rallybio (NASDAQ:RLYB – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

89.9% of NewAmsterdam Pharma shares are owned by institutional investors. Comparatively, 90.3% of Rallybio shares are owned by institutional investors. 12.7% of NewAmsterdam Pharma shares are owned by company insiders. Comparatively, 10.3% of Rallybio shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for NewAmsterdam Pharma and Rallybio, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NewAmsterdam Pharma 1 1 10 1 2.85
Rallybio 0 1 0 0 2.00

NewAmsterdam Pharma presently has a consensus target price of $49.00, indicating a potential upside of 130.48%. Given NewAmsterdam Pharma’s stronger consensus rating and higher possible upside, equities analysts clearly believe NewAmsterdam Pharma is more favorable than Rallybio.

Earnings and Valuation

This table compares NewAmsterdam Pharma and Rallybio”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NewAmsterdam Pharma $22.50 million 112.95 -$203.82 million ($2.16) -9.84
Rallybio $860,000.00 104.90 -$8.98 million ($4.34) -3.91

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

Profitability

This table compares NewAmsterdam Pharma and Rallybio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NewAmsterdam Pharma -3,644.21% -34.81% -31.50%
Rallybio -911.07% -40.53% -38.13%

Volatility and Risk

NewAmsterdam Pharma has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500. Comparatively, Rallybio has a beta of -0.72, indicating that its stock price is 172% less volatile than the S&P 500.

Summary

NewAmsterdam Pharma beats Rallybio on 11 of the 15 factors compared between the two stocks.

About NewAmsterdam Pharma

(Get Free Report)

NewAmsterdam Pharma Company N.V., a late-stage biopharmaceutical company, develops therapies to enhance patient care in populations with metabolic disease. It is developing obicetrapib, an oral low-dose cholesteryl ester transfer protein (CETP) inhibitor, that is in various clinical trials as a monotherapy and a combination therapy with ezetimibe for lowering LDL-C for cardiovascular diseases. The company also develops Obicetrapib which is in Phase 2a clinical trial for Alzheimer’s disease. NewAmsterdam Pharma Company N.V. is headquartered in Naarden, the Netherlands.

About Rallybio

(Get Free Report)

Rallybio Corporation, a clinical-stage biotechnology company, engages in development and commercialization of life-transforming therapies for patients suffering from severe and rare diseases. Its lead product candidate is RLYB212, a monoclonal anti-HPA-1a antibody that has completed Phase I clinical trial for the prevention of fetal and neonatal alloimmune thrombocytopenia (FNAIT); and RLYB211 for the prevention of FNAIT. The company is also developing RLYB114, a pegylated complement factor 5 (C5)-targeted Affibody molecule in preclinical development for the treatment of complement-mediated ophthalmic diseases; RLYB116, an inhibitor of complement component 5 (C5) to treat several diseases of complement dysregulation which has completed phase 1 trial; and RLYB331, a preclinical antibody, for the treatment of severe anemia with ineffective erythropoiesis and iron overload. It entered into a strategic alliance with AbCellera to discover, develop, and commercialize novel antibody-based therapeutics for rare diseases. Rallybio has collaboration with Exscientia for the development of small molecule therapeutics for rare diseases; and collaboration agreement with Johnson & Johnson to provide pregnant individuals therapeutic solutions at risk of fetal and neonatal alloimmune thrombocytopenia. The company was founded in 2018 and is headquartered in New Haven, Connecticut.

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