Neurogene (NASDAQ:NGNE – Get Free Report) and 4D Molecular Therapeutics (NASDAQ:FDMT – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Volatility & Risk
Neurogene has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, 4D Molecular Therapeutics has a beta of 2.75, suggesting that its stock price is 175% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Neurogene and 4D Molecular Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Neurogene | 1 | 0 | 5 | 2 | 3.00 |
| 4D Molecular Therapeutics | 1 | 1 | 11 | 0 | 2.77 |
Neurogene presently has a consensus target price of $80.29, suggesting a potential upside of 178.58%. 4D Molecular Therapeutics has a consensus target price of $28.90, suggesting a potential upside of 126.13%. Given Neurogene’s stronger consensus rating and higher probable upside, equities analysts clearly believe Neurogene is more favorable than 4D Molecular Therapeutics.
Institutional & Insider Ownership
52.4% of Neurogene shares are held by institutional investors. Comparatively, 99.3% of 4D Molecular Therapeutics shares are held by institutional investors. 11.7% of Neurogene shares are held by company insiders. Comparatively, 7.9% of 4D Molecular Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Neurogene and 4D Molecular Therapeutics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Neurogene | $930,000.00 | 620.09 | -$90.35 million | ($5.03) | -5.73 |
| 4D Molecular Therapeutics | $85.21 million | 8.29 | -$140.11 million | ($2.63) | -4.86 |
Neurogene has higher earnings, but lower revenue than 4D Molecular Therapeutics. Neurogene 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 Neurogene and 4D Molecular Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Neurogene | N/A | -45.10% | -41.00% |
| 4D Molecular Therapeutics | -194.74% | -41.33% | -35.90% |
About Neurogene
Neurogene Inc., a biotechnology company, develops genetic medicines for rare neurological diseases. The company's product candidates include NGN-401 which is packaged in an adeno-associated virus 9 that is in Phase 1/2 clinical trial for the treatment of Rett syndrome; and NGN-101, a conventional gene therapy candidate that is in Phase 1/2 clinical trial to treat CLN5 Batten disease. It has a license agreement with The University of North Carolina, the University of Edinburgh, Virovek, Inc., and Sigma-Aldrich Co. LLC. The company is headquartered in New York, New York.
About 4D Molecular Therapeutics
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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