Analyzing Scholar Rock (NASDAQ:SRRK) and 4D Molecular Therapeutics (NASDAQ:FDMT)

Scholar Rock (NASDAQ:SRRKGet Free Report) and 4D Molecular Therapeutics (NASDAQ:FDMTGet Free Report) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Volatility and Risk

Scholar Rock has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, 4D Molecular Therapeutics has a beta of 2.74, meaning that its share price is 174% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Scholar Rock and 4D Molecular Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Scholar Rock 0 0 6 1 3.14
4D Molecular Therapeutics 1 1 9 0 2.73

Scholar Rock presently has a consensus target price of $40.43, indicating a potential downside of 11.26%. 4D Molecular Therapeutics has a consensus target price of $42.56, indicating a potential upside of 632.45%. Given 4D Molecular Therapeutics’ higher probable upside, analysts clearly believe 4D Molecular Therapeutics is more favorable than Scholar Rock.

Valuation & Earnings

This table compares Scholar Rock and 4D Molecular Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Scholar Rock $33.19 million 128.51 -$165.79 million ($2.35) -19.39
4D Molecular Therapeutics $17,000.00 15,799.10 -$100.84 million ($2.85) -2.04

4D Molecular Therapeutics has lower revenue, but higher earnings than Scholar Rock. Scholar Rock is trading at a lower price-to-earnings ratio than 4D Molecular Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Scholar Rock and 4D Molecular Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Scholar Rock N/A -145.60% -91.83%
4D Molecular Therapeutics N/A -28.00% -26.16%

Institutional & Insider Ownership

91.1% of Scholar Rock shares are owned by institutional investors. Comparatively, 99.3% of 4D Molecular Therapeutics shares are owned by institutional investors. 19.2% of Scholar Rock shares are owned by company insiders. Comparatively, 7.3% of 4D Molecular Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

4D Molecular Therapeutics beats Scholar Rock on 9 of the 14 factors compared between the two stocks.

About Scholar Rock

(Get Free Report)

Scholar Rock Holding Corporation, a biopharmaceutical company, focuses on the discovery, development, and delivery of medicines for the treatment of serious diseases in which signaling by protein growth factors plays a fundamental role. The company develops Apitegromab, an inhibitor of the activation of myostatin that is in Phase 3 clinical trial for the treatment of spinal muscular atrophy; and SRK-181, which has completed Phase 1 clinical trials for the treatment of cancers that are resistant to checkpoint inhibitor therapies, such as anti-PD-1 or anti-PD-L1 antibody therapies. It is developing a pipeline of product candidates to deliver novel therapies to treat a range of serious diseases, including neuromuscular disorders, cardiometabolic disorders, cancer, fibrosis, and iron-restricted anemia. Scholar Rock Holding Corporation was founded in 2012 and is headquartered in Cambridge, Massachusetts.

About 4D Molecular Therapeutics

(Get Free Report)

4D Molecular Therapeutics, Inc., a clinical-stage biotherapeutics company, develops genetic medicines using its therapeutic vector evolution platform in the Netherland and the United States. The company develops a portfolio of genetic medicine product candidates focuses in three therapeutic areas for ophthalmology, cardiology, and pulmonology. Its product pipeline includes 4D-150, which is in phase 1/2 clinical trial for the treatment of wet age-related macular degeneration; and is in phase 1/2 clinical trial for the treatment of diabetic macular edema. The company develops 4D-125, which is in phase 1/2 clinical trial for the treatment of x-linked retinitis pigmentosa; 4D-110, which is in phase 1/2 clinical trial for the treatment of choroideremia; 4D-710, which is in phase 1/2 clinical trial for the treatment cystic fibrosis lung disease; and 4D-310 to treat fabry disease cardiomyopathy and is in phase 1/2 clinical trial. In addition, its product candidates comprises 4D-175, which is in pre-clinical development for the treatment for geographic trophy; and 4D-725 to treat alpha-1 antitrypsin deficiency lung disease and is in pre-clinical development. The company has collaboration and licensing agreements with Arbor Biotechnologies, Inc.; Astellas Gene Therapies, Inc; uniQure biopharma B.V.; and Cystic Fibrosis Foundation. 4D Molecular Therapeutics, Inc. was founded in 2013 and is headquartered in Emeryville, California.

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