Vir Biotechnology (NASDAQ:VIR – Get Free Report) and Passage Bio (NASDAQ:PASG – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.
Profitability
This table compares Vir Biotechnology and Passage Bio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vir Biotechnology | -2,963.54% | -50.76% | -40.63% |
| Passage Bio | N/A | -102.09% | -52.97% |
Insider and Institutional Ownership
65.3% of Vir Biotechnology shares are held by institutional investors. Comparatively, 53.5% of Passage Bio shares are held by institutional investors. 16.0% of Vir Biotechnology shares are held by insiders. Comparatively, 4.3% of Passage Bio shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vir Biotechnology | $74.21 million | 10.95 | -$521.96 million | ($3.61) | -1.62 |
| Passage Bio | N/A | N/A | -$64.77 million | ($14.40) | -0.74 |
Passage Bio has lower revenue, but higher earnings than Vir Biotechnology. Vir Biotechnology is trading at a lower price-to-earnings ratio than Passage Bio, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Vir Biotechnology and Passage Bio, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vir Biotechnology | 1 | 1 | 9 | 0 | 2.73 |
| Passage Bio | 1 | 0 | 3 | 0 | 2.50 |
Vir Biotechnology currently has a consensus target price of $17.30, indicating a potential upside of 196.23%. Passage Bio has a consensus target price of $42.67, indicating a potential upside of 298.75%. Given Passage Bio’s higher possible upside, analysts plainly believe Passage Bio is more favorable than Vir Biotechnology.
Risk & Volatility
Vir Biotechnology has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Passage Bio has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500.
Summary
Vir Biotechnology beats Passage Bio on 8 of the 13 factors compared between the two stocks.
About Vir Biotechnology
Vir Biotechnology, Inc., an immunology company, develops therapeutic products to treat and prevent serious infectious diseases. Its clinical development pipeline consists of product candidates targeting hepatitis delta virus (HDV), hepatitis B virus (HBV), and human immunodeficiency virus (HIV). The company’s preclinical candidates include those targeting influenza A and B, coronavirus disease 2019, respiratory syncytial virus (RSV) and human metapneumovirus (MPV), and human papillomavirus (HPV). The company has grant agreements with Bill & Melinda Gates Foundation and National Institutes of Health; an option and license agreement with Brii Biosciences Limited; a collaboration and license agreement with Alnylam Pharmaceuticals, Inc.; license agreements with MedImmune, LLC; collaboration with WuXi Biologics (Hong Kong) Limited and Glaxo Wellcome UK Ltd.; and a collaborative research agreement with GlaxoSmithKline Biologicals S.A, as well as license agreement with Sanofi for three clinical-stage masked T-cell engagers (TCEs) and exclusive use of the protease-cleavable masking platform for oncology and infectious diseases. It also has a manufacturing agreement with Samsung Biologics Co.,Ltd. The company was incorporated in 2016 and is headquartered in San Francisco, California.
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.
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