ADMA Biologics (NASDAQ:ADMA) and Passage Bio (NASDAQ:PASG) Financial Analysis

ADMA Biologics (NASDAQ:ADMA) and Passage Bio (NASDAQ:PASG) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Earnings & Valuation

This table compares ADMA Biologics and Passage Bio”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ADMA Biologics	$330.24 million	10.96	-$28.24 million	($0.02)	-781.00
Passage Bio	N/A	N/A	-$102.06 million	($1.53)	-0.38

ADMA Biologics has higher revenue and earnings than Passage Bio. ADMA Biologics is trading at a lower price-to-earnings ratio than Passage Bio, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

ADMA Biologics has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Passage Bio has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for ADMA Biologics and Passage Bio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADMA Biologics	0	0	3	1	3.25
Passage Bio	0	0	3	0	3.00

ADMA Biologics currently has a consensus price target of $15.50, indicating a potential downside of 0.77%. Passage Bio has a consensus price target of $8.33, indicating a potential upside of 1,316.03%. Given Passage Bio’s higher possible upside, analysts clearly believe Passage Bio is more favorable than ADMA Biologics.

Profitability

This table compares ADMA Biologics and Passage Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ADMA Biologics	10.53%	38.79%	17.35%
Passage Bio	N/A	-70.74%	-52.29%

Insider and Institutional Ownership

75.7% of ADMA Biologics shares are owned by institutional investors. Comparatively, 53.5% of Passage Bio shares are owned by institutional investors. 3.7% of ADMA Biologics shares are owned by insiders. Comparatively, 4.3% of Passage Bio shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

ADMA Biologics beats Passage Bio on 9 of the 13 factors compared between the two stocks.

About ADMA Biologics

ADMA Biologics, Inc., a biopharmaceutical company, engages in developing, manufacturing, and marketing specialty plasma-derived biologics for the treatment of immune deficiencies and infectious diseases in the United States and internationally. The company offers BIVIGAM, an intravenous immune globulin (IVIG) product indicated for the treatment of primary humoral immunodeficiency (PI); ASCENIV, an IVIG product for the treatment of PI; and Nabi-HB for the treatment of acute exposure to blood containing Hepatitis B surface antigen and other listed exposures to Hepatitis B. It develops a pipeline of plasma-derived therapeutics, including products related to the methods of treatment and prevention of S. pneumonia infection for an immunoglobulin. In addition, it operates source plasma collection facilities. The company sells its products through independent distributors, drug wholesalers, specialty pharmacies, and other alternate site providers. ADMA Biologics, Inc. was incorporated in 2004 and is headquartered in Ramsey, New Jersey.

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.