Head to Head Survey: BridgeBio Pharma (NASDAQ:BBIO) and Gossamer Bio (NASDAQ:GOSS)

BridgeBio Pharma (NASDAQ:BBIO) and Gossamer Bio (NASDAQ:GOSS) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Volatility & Risk

BridgeBio Pharma has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Gossamer Bio has a beta of 1.96, suggesting that its share price is 96% more volatile than the S&P 500.

Profitability

This table compares BridgeBio Pharma and Gossamer Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BridgeBio Pharma	-207.11%	N/A	-76.71%
Gossamer Bio	N/A	-117.33%	-25.02%

Institutional & Insider Ownership

99.8% of BridgeBio Pharma shares are held by institutional investors. Comparatively, 81.2% of Gossamer Bio shares are held by institutional investors. 24.7% of BridgeBio Pharma shares are held by insiders. Comparatively, 5.0% of Gossamer Bio shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for BridgeBio Pharma and Gossamer Bio, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BridgeBio Pharma	0	2	11	0	2.85
Gossamer Bio	0	0	5	0	3.00

BridgeBio Pharma currently has a consensus target price of $47.92, indicating a potential upside of 89.92%. Gossamer Bio has a consensus target price of $9.20, indicating a potential upside of 759.81%. Given Gossamer Bio’s stronger consensus rating and higher probable upside, analysts plainly believe Gossamer Bio is more favorable than BridgeBio Pharma.

Earnings & Valuation

This table compares BridgeBio Pharma and Gossamer Bio”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BridgeBio Pharma	$219.12 million	21.55	-$643.20 million	($3.22)	-7.84
Gossamer Bio	$95.84 million	2.53	-$179.82 million	($1.06)	-1.01

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

Summary

Gossamer Bio beats BridgeBio Pharma on 8 of the 14 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 Gossamer Bio

Gossamer Bio, Inc., a clinical-stage biopharmaceutical company, focuses on developing and commercializing seralutinib for the treatment of pulmonary arterial hypertension (PAH) in the United States. The company is developing GB002, an inhaled, small molecule, platelet-derived growth factor receptor, or PDGFR, colony-stimulatin factor 1 receptor and c-KIT inhibitor, which is in Phase 3 clinical trial for the treatment of PAH. It has license agreements with Pulmokine, Inc. to develop and commercialize GB002 and related backup compounds. The company was formerly known as FSG, Bio, Inc. and changed its name to Gossamer Bio, Inc. in 2017. Gossamer Bio, Inc. was incorporated in 2015 and is headquartered in San Diego, California.