Contrasting IDEAYA Biosciences (NASDAQ:IDYA) and Bright Minds Biosciences (NASDAQ:DRUG)

IDEAYA Biosciences (NASDAQ:IDYA) and Bright Minds Biosciences (NASDAQ:DRUG) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.

Valuation and Earnings

This table compares IDEAYA Biosciences and Bright Minds Biosciences”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IDEAYA Biosciences	$218.71 million	11.79	-$113.70 million	($1.60)	-18.34
Bright Minds Biosciences	N/A	N/A	-$8.74 million	($2.44)	-35.36

Bright Minds Biosciences has lower revenue, but higher earnings than IDEAYA Biosciences. Bright Minds Biosciences is trading at a lower price-to-earnings ratio than IDEAYA Biosciences, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

98.3% of IDEAYA Biosciences shares are held by institutional investors. Comparatively, 40.5% of Bright Minds Biosciences shares are held by institutional investors. 4.7% of IDEAYA Biosciences shares are held by company insiders. Comparatively, 42.7% of Bright Minds Biosciences shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares IDEAYA Biosciences and Bright Minds Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IDEAYA Biosciences	N/A	-14.24%	-13.09%
Bright Minds Biosciences	N/A	-20.58%	-20.25%

Risk & Volatility

IDEAYA Biosciences has a beta of -0.04, meaning that its share price is 104% less volatile than the S&P 500. Comparatively, Bright Minds Biosciences has a beta of -5.35, meaning that its share price is 635% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for IDEAYA Biosciences and Bright Minds Biosciences, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IDEAYA Biosciences	1	1	15	0	2.82
Bright Minds Biosciences	0	1	6	0	2.86

IDEAYA Biosciences currently has a consensus price target of $50.69, indicating a potential upside of 72.70%. Bright Minds Biosciences has a consensus price target of $143.83, indicating a potential upside of 66.71%. Given IDEAYA Biosciences’ higher possible upside, equities research analysts clearly believe IDEAYA Biosciences is more favorable than Bright Minds Biosciences.

Summary

IDEAYA Biosciences beats Bright Minds Biosciences on 9 of the 12 factors compared between the two stocks.

About IDEAYA Biosciences

IDEAYA Biosciences, Inc., a synthetic lethality-focused precision medicine oncology company, discovers and develops targeted therapeutics for patient populations selected using molecular diagnostics in the United States. The company's products in development include IDE196, a protein kinase C inhibitor that is in Phase 2/3 clinical trials for genetically defined cancers having GNAQ or GNA11 gene mutations; IDE397, a methionine adenosyltransferase 2a inhibitor that is in Phase 1/2 clinical trials for patients with solid tumors having methylthioadenosine phosphorylase gene deletions, such as non-small cell lung, bladder, gastric, and esophageal cancers; IDE161, a poly ADP-ribose glycohydrolase inhibitor that is in Phase 1 clinical trial to treat tumors with homologous recombination deficiency (HRD), and other genetic or molecular signatures; GSK101, a Pol Theta Helicase inhibitor that is in Phase 1 clinical trial for the treatment of tumors with BRCA or other homologous recombination, and HRD mutations; and Werner Helicase inhibitors for tumors with high microsatellite instability. It offers preclinical research programs focused on pharmacological inhibition; DECIPHER dual CRISPR library for synthetic lethality target and biomarker discovery; and INQUIRE chemical library and HARMONY machine-learning engines to enhance its drug discovery platform. The company has strategic alliances with GlaxoSmithKline, Pfizer Inc., Novartis International Pharmaceuticals Ltd., Amgen Inc., Gilead Sciences, Inc., Cancer Research UK, and the University of Manchester. IDEAYA Biosciences, Inc. was incorporated in 2015 and is headquartered in South San Francisco, California.

About Bright Minds Biosciences

Bright Minds Biosciences Inc., a biotechnology company, develops therapeutics to improve the lives of patients with severe and life-altering diseases in the United States. Its portfolio of selective 5-HT receptor agonists includes 5-HT2C, 5-HT2A, and 5-HT2C/A for the treatment of epilepsy, pain, and neuropsychiatry; and BMB-101 which completes phase 1 trial for undisclosed seizure disorder. The company also developing BMB-202 for the treatment of depression, anxiety, and PTSD; and BMB-201 for the treatment of anxiety. It has collaboration with National Institutes of Health for the treatment of epilepsy; University of Texas Medical Branch to treat impulse control disorders, such as binge eating; and Medical College of Wisconsin. Bright Minds Biosciences Inc. was founded in 2017 and is headquartered in New York, New York.