Genelux (NASDAQ:GNLX) vs. Generation Bio (NASDAQ:GBIO) Financial Analysis

Genelux (NASDAQ:GNLXGet Free Report) and Generation Bio (NASDAQ:GBIOGet 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 dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Genelux and Generation Bio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Genelux N/A -129.29% -97.37%
Generation Bio -410.13% -94.82% -34.13%

Insider and Institutional Ownership

37.3% of Genelux shares are owned by institutional investors. Comparatively, 95.2% of Generation Bio shares are owned by institutional investors. 8.8% of Genelux shares are owned by insiders. Comparatively, 21.1% of Generation Bio shares are owned 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.

Volatility and Risk

Genelux has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500. Comparatively, Generation Bio has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Genelux and Generation Bio, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genelux 1 0 3 0 2.50
Generation Bio 1 3 3 0 2.29

Genelux currently has a consensus target price of $21.00, indicating a potential upside of 753.66%. Generation Bio has a consensus target price of $8.88, indicating a potential upside of 63.75%. Given Genelux’s stronger consensus rating and higher probable upside, equities analysts plainly believe Genelux is more favorable than Generation Bio.

Valuation and Earnings

This table compares Genelux and Generation Bio”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Genelux $10,000.00 9,360.30 -$29.87 million ($0.88) -2.80
Generation Bio $19.89 million 1.84 -$131.67 million ($9.34) -0.58

Genelux has higher earnings, but lower revenue than Generation Bio. Genelux is trading at a lower price-to-earnings ratio than Generation Bio, indicating that it is currently the more affordable of the two stocks.

Summary

Generation Bio beats Genelux on 7 of the 13 factors compared between the two stocks.

About Genelux

(Get Free Report)

Genelux Corporation, a clinical-stage biopharmaceutical company, focuses on developing next-generation oncolytic viral immunotherapies for patients suffering from aggressive and/or difficult-to-treat solid tumor types. Its lead product candidate is Olvi-Vec, a proprietary modified strain of the vaccinia virus for the treatment of ovarian cancer and non-small cell lung cancer. The company is also developing V2ACT Immunotherapy for treating pancreatic cancer. Genelux Corporation has a licensing agreement with ELIAS Animal Health, LLC for V-VET1, a clinical stage animal health product candidate. The company was incorporated in 2001 and is headquartered in Westlake Village, California.

About Generation Bio

(Get Free Report)

Generation Bio Co. develops non-viral genetic medicines for the treatment of rare and prevalent diseases. The company develops cell-targeted lipid nanoparticle (ctLNP) platform, a modular delivery system for nucleic acids to avoid off-target clearance by the liver and spleen that enables ctLNPs to persist in systemic circulation, which allows for highly selective and potent ligand-driven targeting to specific tissues and cell types; and novel immune-quiet DNA (iqDNA) to enable long-lasting high levels of gene expression from non-integrating episomes and avoids innate immune sensors that have long prevented DNA from use in non-viral systems. It uses its platform for developing a portfolio of programs for treating cancer, autoimmune, hematologic disorders, prioritizing sickle cell, beta-thalassemia, and hemophilia A diseases, as well as for other tissues and cell types, including retina, skeletal muscle, and central nervous system. The company was formerly known as Torus Therapeutics, Inc. and changed its name to Generation Bio Co. in November 2017. Generation Bio Co. was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.

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