Passage Bio (NASDAQ:PASG – Get Free Report) and SpringWorks Therapeutics (NASDAQ:SWTX – Get Free Report) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.
Profitability
This table compares Passage Bio and SpringWorks Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Passage Bio | N/A | -72.53% | -52.10% |
| SpringWorks Therapeutics | -203.09% | -48.21% | -42.19% |
Earnings and Valuation
This table compares Passage Bio and SpringWorks Therapeutics”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Passage Bio | N/A | N/A | -$102.06 million | ($1.17) | -0.47 |
| SpringWorks Therapeutics | $5.45 million | 768.47 | -$325.10 million | ($3.88) | -14.51 |
Insider & Institutional Ownership
53.5% of Passage Bio shares are held by institutional investors. 4.3% of Passage Bio shares are held by company insiders. Comparatively, 7.6% of SpringWorks Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
Passage Bio has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, SpringWorks Therapeutics has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Passage Bio and SpringWorks Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Passage Bio | 0 | 0 | 4 | 0 | 3.00 |
| SpringWorks Therapeutics | 0 | 0 | 6 | 0 | 3.00 |
Passage Bio presently has a consensus price target of $7.75, suggesting a potential upside of 1,315.53%. SpringWorks Therapeutics has a consensus price target of $70.83, suggesting a potential upside of 25.81%. Given Passage Bio’s higher probable upside, research analysts clearly believe Passage Bio is more favorable than SpringWorks Therapeutics.
Summary
Passage Bio beats SpringWorks Therapeutics on 7 of the 12 factors compared between the two stocks.
About Passage Bio
Passage Bio, Inc., a genetic medicines company, develops gene therapies for central nervous system diseases. It develops PBGM01, a functional GLB1 gene encoding ß-galactosidase for infantile GM1; PBFT02, a functional granulin (GRN) and gene encoding progranulin (PGRN) for the treatment of FTD caused by progranulin deficiency; and PBKR03, a functional GALC gene encoding the hydrolytic enzyme galactosylceramidase for infantile Krabbe disease. The company develops PBML04 for the treatment of metachromatic leukodystrophy; PBAL05 for the treatment of amyotrophic lateral sclerosis; and other program for huntington's disease. It has a strategic research collaboration with the Trustees of the University of Pennsylvania's Gene Therapy Program; and collaboration agreement, and a development services and clinical supply agreement with Catalent Maryland, Inc. Passage Bio, Inc. was incorporated in 2017 and is headquartered in Philadelphia, Pennsylvania.
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.
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