Financial Analysis: BioCryst Pharmaceuticals (NASDAQ:BCRX) and Vir Biotechnology (NASDAQ:VIR)

Vir Biotechnology (NASDAQ:VIR – Get Free Report) and BioCryst Pharmaceuticals (NASDAQ:BCRX – Get Free Report) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of current ratings and target prices for Vir Biotechnology and BioCryst Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vir Biotechnology 2 0 6 1 2.67
BioCryst Pharmaceuticals 1 4 6 0 2.45

Vir Biotechnology presently has a consensus price target of $21.86, suggesting a potential upside of 93.43%. BioCryst Pharmaceuticals has a consensus price target of $19.44, suggesting a potential upside of 129.57%. Given BioCryst Pharmaceuticals’ higher possible upside, analysts clearly believe BioCryst Pharmaceuticals is more favorable than Vir Biotechnology.

Profitability

This table compares Vir Biotechnology and BioCryst Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vir Biotechnology N/A -29.99% -23.62%
BioCryst Pharmaceuticals -40.90% -86.89% 66.37%

Insider & Institutional Ownership

65.3% of Vir Biotechnology shares are held by institutional investors. Comparatively, 85.9% of BioCryst Pharmaceuticals shares are held by institutional investors. 2.9% of Vir Biotechnology shares are held by insiders. Comparatively, 3.8% of BioCryst Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Vir Biotechnology and BioCryst Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vir Biotechnology $68.56 million 27.89 -$437.99 million ($1.86) -6.08
BioCryst Pharmaceuticals $874.84 million 2.47 $263.86 million ($1.50) -5.65

BioCryst Pharmaceuticals has higher revenue and earnings than Vir Biotechnology. Vir Biotechnology is trading at a lower price-to-earnings ratio than BioCryst Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Vir Biotechnology has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500. Comparatively, BioCryst Pharmaceuticals has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Summary

BioCryst Pharmaceuticals beats Vir Biotechnology on 8 of the 14 factors compared between the two stocks.

About Vir Biotechnology

(Get Free Report)

Vir Biotechnology, Inc., an immunology company, develops therapeutic products to treat and prevent serious infectious diseases. Its clinical development pipeline consists of product candidates targeting hepatitis delta virus (HDV), hepatitis B virus (HBV), and human immunodeficiency virus (HIV). The company’s preclinical candidates include those targeting influenza A and B, coronavirus disease 2019, respiratory syncytial virus (RSV) and human metapneumovirus (MPV), and human papillomavirus (HPV). The company has grant agreements with Bill & Melinda Gates Foundation and National Institutes of Health; an option and license agreement with Brii Biosciences Limited; a collaboration and license agreement with Alnylam Pharmaceuticals, Inc.; license agreements with MedImmune, LLC; collaboration with WuXi Biologics (Hong Kong) Limited and Glaxo Wellcome UK Ltd.; and a collaborative research agreement with GlaxoSmithKline Biologicals S.A, as well as license agreement with Sanofi for three clinical-stage masked T-cell engagers (TCEs) and exclusive use of the protease-cleavable masking platform for oncology and infectious diseases. It also has a manufacturing agreement with Samsung Biologics Co.,Ltd. The company was incorporated in 2016 and is headquartered in San Francisco, California.

About BioCryst Pharmaceuticals

(Get Free Report)

BioCryst Pharmaceuticals, Inc., a biotechnology company, develops oral small-molecule and protein therapeutics to treat rare diseases. The company markets peramivir injection, an intravenous neuraminidase inhibitor for the treatment of acute uncomplicated influenza under the RAPIVAB, RAPIACTA, and PERAMIFLU names; and ORLADEYO, an oral serine protease inhibitor to treat hereditary angioedema. It is also developing BCX10013, an oral factor D inhibitor for complement-mediated diseases. The company has collaborations and in-license relationships with the Torii Pharmaceutical Co., Ltd.; Seqirus UK Limited; Shionogi & Co., Ltd.; Green Cross Corporation; National Institute of Allergy and Infectious Diseases; Biomedical Advanced Research and Development Authority; the U.S. Department of Health and Human Services; and The University of Alabama at Birmingham, as well as Albert Einstein College of Medicine of Yeshiva University and Industrial Research, Ltd. BioCryst Pharmaceuticals, Inc. was founded in 1986 and is headquartered in Durham, North Carolina.

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