Grifols (NASDAQ:GRFS) and NewAmsterdam Pharma (NASDAQ:NAMS) Critical Review

Grifols (NASDAQ:GRFS) and NewAmsterdam Pharma (NASDAQ:NAMS) are both mid-cap healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitability, earnings, risk, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

89.9% of NewAmsterdam Pharma shares are owned by institutional investors. 0.2% of Grifols shares are owned by insiders. Comparatively, 12.7% of NewAmsterdam Pharma shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Grifols and NewAmsterdam Pharma, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grifols	1	2	0	0	1.67
NewAmsterdam Pharma	1	1	10	1	2.85

Grifols currently has a consensus price target of $10.00, suggesting a potential upside of 33.60%. NewAmsterdam Pharma has a consensus price target of $49.00, suggesting a potential upside of 128.54%. Given NewAmsterdam Pharma’s stronger consensus rating and higher probable upside, analysts plainly believe NewAmsterdam Pharma is more favorable than Grifols.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grifols	5.54%	6.21%	2.39%
NewAmsterdam Pharma	-3,644.21%	-34.81%	-31.50%

Volatility & Risk

Grifols has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, NewAmsterdam Pharma has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500.

Valuation & Earnings

This table compares Grifols 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
Grifols	$8.51 billion	0.60	$454.82 million	$0.19	39.39
NewAmsterdam Pharma	$22.50 million	113.91	-$203.82 million	($2.16)	-9.93

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

Summary

Grifols beats NewAmsterdam Pharma on 8 of the 15 factors compared between the two stocks.

About Grifols

Grifols, S.A. operates as a plasma therapeutic company in Spain, the United States, Canada, and internationally. The company provides immunoglobulin to treat immunodeficiencies; albumin used to restore circulatory volume and protein loss in pathophysiological conditions, such as liver cirrhosis, cardiocirculatory failure, trauma and severe burns; alpha-1 proteinase inhibitor, a plasma protein, used to treat a genetic disease known as alpha-1; factorVIII/von Willerbrand factor and factor IX, clotting factors for the treatment of hemophilia A and von Willebrand’s disease, as well as hemophilia B; antithrombin III to treat hereditary antithrombin deficiency; Fostamatinib, a spleen tyrosine kinase inhibitor; combination of fibrinogen and enzyme thrombin that acts as a biological sealant to control surgical bleeding; and plasma exchange with albumin used to treat Alzheimer’s disease. It markets diagnostic testing equipment, reagents, and other equipment; biological products; manufactures and sells plasma to third parties; and involves in research activities, as well as markets pharmaceutical products for hospital pharmacies. In addition, the company offers Yimmugo PID, an immunology drug; and Yimmugo ITP, a hematology drug. Further, it develops Xembify Pre-filled syringes, FlexBag, and Prolastin vials; Xembify Biweekly dosing, Prolastin-C, Fostamatinib2, and VISTASEAL which are in Phase IV development stage; Xembify, Albumin 20% and 5%, Fibrinogen, Trimodulin, Cytotec pregnancy, and AMBAR-Next in Phase III development stage; and AKST4290 that is in Phase II clinical development. Additionally, it offers recIG, Alpha-1 AT in non-cystic fibrosis bronchiectasis, ATIII, GIGA 2339, GIGA564, and OSIG. It has collaboration agreements with Canadian Blood Services for the processing of other plasma-derived products and with GIANT; and GigaGen to develop recombinant polyclonal immunoglobulin therapies. The company was founded in 1909 and is headquartered in Barcelona, Spain.

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.