Critical Review: Cue Biopharma (NASDAQ:CUE) and Genmab A/S (OTCMKTS:GNMSF)

Genmab A/S (OTCMKTS:GNMSF) and Cue Biopharma (NASDAQ:CUE) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Profitability

This table compares Genmab A/S and Cue Biopharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genmab A/S	23.49%	17.73%	14.98%
Cue Biopharma	-468.02%	-156.38%	-88.07%

Analyst Ratings

This is a summary of recent recommendations for Genmab A/S and Cue Biopharma, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genmab A/S	0	0	0	0	0.00
Cue Biopharma	0	0	5	0	3.00

Cue Biopharma has a consensus target price of $5.00, suggesting a potential upside of 290.63%. Given Cue Biopharma’s stronger consensus rating and higher probable upside, analysts clearly believe Cue Biopharma is more favorable than Genmab A/S.

Earnings & Valuation

This table compares Genmab A/S and Cue Biopharma”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genmab A/S	$2.39 billion	5.79	$631.91 million	$10.40	20.16
Cue Biopharma	$5.49 million	14.77	-$50.73 million	($0.90)	-1.42

Genmab A/S has higher revenue and earnings than Cue Biopharma. Cue Biopharma is trading at a lower price-to-earnings ratio than Genmab A/S, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

35.0% of Cue Biopharma shares are owned by institutional investors. 1.5% of Genmab A/S shares are owned by company insiders. Comparatively, 12.3% of Cue Biopharma shares are owned 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.

Volatility and Risk

Genmab A/S has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Cue Biopharma has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500.

About Genmab A/S

Genmab A/S develops antibody therapeutics for the treatment of cancer and other diseases primarily in Denmark. The company markets DARZALEX, a human monoclonal antibody for the treatment of patients with multiple myeloma (MM); teprotumumab for the treatment of thyroid eye disease; and Amivantamab for advanced or metastatic gastric or esophageal cancer and NSCLC. Its products include daratumumab to treat MM, non-MM blood cancers, and AL amyloidosis; GEN1047; tisotumab vedotin for treating cervical, ovarian, and solid cancers; DuoBody-PD-L1x4-1BB, and DuoBody-CD40x4-1BB for treating solid tumors; Epcoritamab for relapsed/refractory diffuse large B-cell lymphoma and chronic lymphocytic leukemia; and HexaBody-CD38 and GEN3017 for treating hematological malignancies. In addition, the company develops Inclacumab, which is in Phase 3 trial for vaso-occlusive crises; Camidanlumab tesirine to treat hodgkin lymphoma and solid tumors; JNJ-64007957 and JNJ-64407564 to treat MM; PRV-015 for treating celiac disease; Mim8 for treating haemophilia A; and Lu AF82422 for treating multiple system atrophy disease. It operates various active pre-clinical programs. The company has a commercial license and collaboration agreement with Seagen Inc. to co-develop tisotumab vedotin. It also has a collaboration agreement with argenx to discover, develop, and commercialize novel therapeutic antibodies with applications in immunology and oncology; and AbbVie for the development of epcoritamab, as well as collaborations with BioNTech, Janssen, and Novo Nordisk A/S. Genmab A/S was founded in 1999 and is headquartered in Copenhagen, Denmark.

About Cue Biopharma

Cue Biopharma, Inc., a clinical-stage biopharmaceutical company, develops a novel class of injectable therapeutics to selectively engage and modulate targeted, disease relevant T cells directly within the patient's body. Its lead drug product candidate is CUE-101 for the treatment of human papilloma virus (HPV16+)-driven recurrent/metastatic head and neck cancer. The company is also developing CUE-102 targets Wilms' Tumor 1 protein in various cancers; CUE-103, a CUE-100 series drug product candidate; and Neo-STAT and RDI-STAT programs outside of oncology, including CUE-200, CUE-300, and CUE-400 series. It has collaboration agreements with LG Chem, Ltd. for the development of Immuno-STATs focused in the field of oncology; strategic collaboration and option agreement with Ono Pharmaceutical Co., Ltd. to advance CUE-401 for the treatment of autoimmune and inflammatory diseases; and license agreement with Albert Einstein College of Medicine. The company was formerly known as Imagen Biopharma, Inc. and changed its name to Cue Biopharma, Inc. in October 2016. Cue Biopharma, Inc. was incorporated in 2014 and is headquartered in Boston, Massachusetts.