Financial Analysis: International Stem Cell (OTCMKTS:ISCO) versus BridgeBio Pharma (NASDAQ:BBIO)

BridgeBio Pharma (NASDAQ:BBIO) and International Stem Cell (OTCMKTS:ISCO) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of current ratings for BridgeBio Pharma and International Stem Cell, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BridgeBio Pharma	0	2	13	0	2.87
International Stem Cell	0	0	0	0	0.00

BridgeBio Pharma presently has a consensus target price of $47.57, indicating a potential upside of 100.55%. Given BridgeBio Pharma’s stronger consensus rating and higher probable upside, equities analysts clearly believe BridgeBio Pharma is more favorable than International Stem Cell.

Institutional & Insider Ownership

99.9% of BridgeBio Pharma shares are held by institutional investors. 24.7% of BridgeBio Pharma shares are held by insiders. Comparatively, 81.5% of International Stem Cell shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

BridgeBio Pharma has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, International Stem Cell has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500.

Earnings & Valuation

This table compares BridgeBio Pharma and International Stem Cell”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BridgeBio Pharma	$9.30 million	482.03	-$643.20 million	($2.41)	-9.84
International Stem Cell	$7.79 million	0.08	-$130,000.00	($0.08)	-1.00

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

Profitability

This table compares BridgeBio Pharma and International Stem Cell’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BridgeBio Pharma	-201.53%	N/A	-74.34%
International Stem Cell	-6.80%	N/A	-10.64%

Summary

BridgeBio Pharma beats International Stem Cell on 7 of the 13 factors compared between the two stocks.

About BridgeBio Pharma

BridgeBio Pharma, Inc., a commercial-stage biopharmaceutical company, discovers, creates, tests, and delivers transformative medicines to treat patients who suffer from genetic diseases and cancers. Its products in development programs include AG10, a next-generation oral small molecule near-complete TTR stabilizer that is in Phase 3 clinical trial for the treatment of TTR amyloidosis, or transthyretin amyloid cardiomyopathy (ATTR-CM); low-dose infigratinib, an oral FGFR1-3 selective tyrosine kinase inhibitor, which is in Phase 3 double-blinded, placebo-controlled pivotal study for the treatment option for children with achondroplasia; and BBP-631, an AAV5 gene transfer product candidate that is in Phase 1/2 clinical trial for the treatment of congenital adrenal hyperplasia, or CAH, driven by 21-hydroxylase deficiency, or 21OHD. The company also develops Encaleret, a small molecule antagonist of the calcium sensing receptor, or CaSR, which is in phase 3 clinical trial for treating autosomal dominant hypocalcemia type 1, or ADH1; and BBP-418, a glycosylation substrate pro-drug that is in Phase 3 clinical trial for treating limb-girdle muscular dystrophy type 2I/R9 (LGMD2I/R9). In addition, it engages in developing products for mendelian, oncology, and gene therapy diseases. BridgeBio Pharma, Inc. has license and collaboration agreements with the Leland Stanford Junior University; and Leidos Biomedical Research, Inc. The company was founded in 2015 and is headquartered in Palo Alto, California.

About International Stem Cell

International Stem Cell Corporation, a clinical stage biotechnology company, focuses on the development of therapeutic and biomedical products in the United States, Asia, Europe, and internationally. It develops ISC- hpNSC, a neural stem cell program that has completed the Phase I clinical trial for the treatment of Parkinson's disease, as well as for treating stroke and traumatic brain injury. The company also offers anti-aging skin care products, including ProPlus Advanced Defense Complex, ProPlus Advanced Recovery Complex, ProPlus Eye Firming Complex, ProPlus Neck Firming Complex, ProPlus Advanced Aqueous Treatment, ProPlus Collagen Booster, ProPlus Elastin Booster, and ProPlus Brightening Toner. In addition, it provides human cell culture products comprising human skin cells and reagents for the study of skin disease, toxicology, or wound healing; human cells from the heart and blood vessels, and reagents to study cardiovascular disease and cancer; human bronchial and tracheal cell lines for the study of toxicity, cystic fibrosis, asthma, and pathogenesis; and human mammary epithelial cell lines for the study of breast cancer, three dimensional culture, and carcinogen screening. Its human cell culture products also comprise adult stem cells and reagents for regenerative medicine; human prostate cells and specialized medium to study prostate disease; human renal and bladder cells and media to study renal and bladder diseases; human corneal cells and media for the study of corneal disease; human female reproductive system cells for the study of cellular physiology; human skeletal muscle cells for the study of biology, diabetes, insulin receptor studies, muscle metabolism, muscle tissue repair, and myotube development; and other cell culture reagents and supplements for the growth, staining, and freezing of human cells. International Stem Cell Corporation was founded in 2001 and is headquartered in San Diego, California.