NewAmsterdam Pharma (NASDAQ:NAMS) versus Connect Biopharma (NASDAQ:CNTB) Critical Contrast

Connect Biopharma (NASDAQ:CNTB) and NewAmsterdam Pharma (NASDAQ:NAMS) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Risk and Volatility

Connect Biopharma has a beta of -0.23, indicating that its stock price is 123% less volatile than the S&P 500. Comparatively, NewAmsterdam Pharma has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500.

Insider and Institutional Ownership

58.7% of Connect Biopharma shares are owned by institutional investors. Comparatively, 89.9% of NewAmsterdam Pharma shares are owned by institutional investors. 22.6% of Connect Biopharma shares are owned by insiders. Comparatively, 12.7% of NewAmsterdam Pharma shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Connect Biopharma	N/A	-165.41%	-121.58%
NewAmsterdam Pharma	-3,644.21%	-34.81%	-31.50%

Analyst Recommendations

This is a breakdown of current ratings for Connect Biopharma and NewAmsterdam Pharma, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Connect Biopharma	1	0	7	0	2.75
NewAmsterdam Pharma	1	1	9	2	2.92

Connect Biopharma currently has a consensus target price of $7.43, indicating a potential upside of 303.73%. NewAmsterdam Pharma has a consensus target price of $49.73, indicating a potential upside of 95.78%. Given Connect Biopharma’s higher probable upside, equities research analysts clearly believe Connect Biopharma is more favorable than NewAmsterdam Pharma.

Valuation and Earnings

This table compares Connect Biopharma and NewAmsterdam Pharma”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Connect Biopharma	$2.95 million	39.24	-$55.48 million	($1.19)	-1.55
NewAmsterdam Pharma	$22.50 million	134.95	-$203.82 million	($2.16)	-11.76

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

Summary

NewAmsterdam Pharma beats Connect Biopharma on 9 of the 15 factors compared between the two stocks.

About Connect Biopharma

Connect Biopharma Holdings Limited, a clinical-stage biopharmaceutical company, engages in the development of therapies for the treatment of T cell-driven inflammatory diseases. The company is building a pipeline of small molecules and antibodies using functional T cell assays to screen and discover potent product candidates against validated immune targets. Its lead product candidate is rademikibart (formerly CBP-201), an antibody designed to target interleukin-4 receptor alpha, which is a validated target for the treatment of inflammatory diseases such as atopic dermatitis and asthma, currently under Phase 3 studies; and icanbelimod (formerly CBP-307), an oral small molecule Sphingosine 1-Phosphate Receptor 1 modulator, currently under Phase 2 clinical for the treatment of ulcerative colitis and Crohn's disease. The company was founded in 2012 and is based in San Diego, California.

About NewAmsterdam Pharma

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.