89bio (NASDAQ:ETNB – Get Free Report) and 2seventy bio (NASDAQ:TSVT – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.
Profitability
This table compares 89bio and 2seventy bio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| 89bio | N/A | -31.01% | -27.84% |
| 2seventy bio | -216.73% | -59.19% | -29.67% |
Analyst Ratings
This is a breakdown of current ratings for 89bio and 2seventy bio, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 89bio | 0 | 2 | 4 | 0 | 2.67 |
| 2seventy bio | 0 | 5 | 3 | 0 | 2.38 |
Valuation and Earnings
This table compares 89bio and 2seventy bio’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| 89bio | N/A | N/A | -$142.19 million | ($2.01) | -4.52 |
| 2seventy bio | $100.39 million | 2.31 | -$217.57 million | ($4.42) | -1.02 |
89bio has higher earnings, but lower revenue than 2seventy bio. 89bio is trading at a lower price-to-earnings ratio than 2seventy bio, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
89bio has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, 2seventy bio has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500.
Insider & Institutional Ownership
93.9% of 2seventy bio shares are held by institutional investors. 4.4% of 89bio shares are held by insiders. Comparatively, 2.6% of 2seventy bio shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
89bio beats 2seventy bio on 9 of the 12 factors compared between the two stocks.
About 89bio
89bio, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of therapies for the treatment of liver and cardio-metabolic diseases. Its lead product candidate is pegozafermin, a glycoPEGylated analog of fibroblast growth factor 21 for the treatment of nonalcoholic steatohepatitis; and for the treatment of severe hypertriglyceridemia. The company was incorporated in 2018 and is headquartered in San Francisco, California.
About 2seventy bio
2seventy bio, Inc., a cell and gene therapy company, focuses on the research, development, and commercialization of treatments for cancer in the United States. The company's products pipeline includes Abecma, a chimeric antigen receptor T-cell product candidates for the treatment of multiple myeloma. It has a collaboration arrangement with Bristol Myers Squibb Company. The company was incorporated in 2021 and is headquartered in Cambridge, Massachusetts.
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