Rocket Pharmaceuticals (NASDAQ:RCKT) versus Graybug Vision (NASDAQ:GRAY) Financial Survey

Graybug Vision (NASDAQ:GRAY) and Rocket Pharmaceuticals (NASDAQ:RCKT) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Institutional & Insider Ownership

49.9% of Graybug Vision shares are owned by institutional investors. Comparatively, 98.4% of Rocket Pharmaceuticals shares are owned by institutional investors. 7.9% of Graybug Vision shares are owned by insiders. Comparatively, 31.1% of Rocket Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Graybug Vision and Rocket Pharmaceuticals’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Graybug Vision	N/A	N/A	-$35.60 million	($24.23)	-0.18
Rocket Pharmaceuticals	N/A	N/A	-$245.60 million	($2.87)	-6.86

Rocket Pharmaceuticals is trading at a lower price-to-earnings ratio than Graybug Vision, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for Graybug Vision and Rocket Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Graybug Vision	0	0	0	0	N/A
Rocket Pharmaceuticals	0	1	9	0	2.90

Rocket Pharmaceuticals has a consensus price target of $51.25, indicating a potential upside of 158.32%. Given Rocket Pharmaceuticals’ higher possible upside, analysts plainly believe Rocket Pharmaceuticals is more favorable than Graybug Vision.

Profitability

This table compares Graybug Vision and Rocket Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Graybug Vision	N/A	-77.61%	-71.34%
Rocket Pharmaceuticals	N/A	-53.10%	-46.90%

Volatility & Risk

Graybug Vision has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Rocket Pharmaceuticals has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Summary

Rocket Pharmaceuticals beats Graybug Vision on 7 of the 10 factors compared between the two stocks.

About Graybug Vision

Graybug Vision, Inc., a clinical-stage biopharmaceutical company, focuses on the development of medicines for the treatment of diseases of the retina and optic nerve. The company's lead product candidate is GB-102, an intravitreal injection of a microparticle depot formulation of sunitinib that is in Phase I/IIa and IIb clinical trials for the treatment of wet age-related macular degeneration, as well as in Phase IIa clinical trial to treat diabetic macular edema. It also develops GB-102, for the treatment of diabetic retinopathy; and GB-401, an intravitreally injected implant formulation of a beta-adrenergic receptor inhibitor to treat primary open-angle glaucoma. The company was formerly known as Graybug LLC and changed its name to Graybug Vision, Inc. in 2016. Graybug Vision, Inc. was incorporated in 2011 and is based in Redwood City, California.

About Rocket Pharmaceuticals

Rocket Pharmaceuticals, Inc., together with its subsidiaries, operates as a late-stage biotechnology company that focuses on developing gene therapies for rare and devastating diseases. It has three clinical-stage ex vivo lentiviral vector programs for fanconi anemia, a genetic defect in the bone marrow that reduces production of blood cells or promotes the production of faulty blood cells; leukocyte adhesion deficiency-I, a genetic disorder that causes the immune system to malfunction; and pyruvate kinase deficiency, a rare red blood cell autosomal recessive disorder that results in chronic non-spherocytic hemolytic anemia. The company also has a clinical stage in vivo adeno-associated virus program for Danon disease, a multi-organ lysosomal-associated disorder leading to early death due to heart failure; Plakophilin-2 Arrhythmogenic Cardiomyopathy, an inheritable cardiac disorder; and BAG3 Dilated Cardiomyopathy. It has license agreements with Centro de Investigaciones Energéticas, Medioambientales y Tecnológicas, Centro de Investigacion Biomedica En Red, and Fundacion Instituto de investigacion Sanitaria Fundacion Jimenez Diaz; UCL Business PLC; The Regents of the University of California; and REGENXBIO, Inc. Rocket Pharmaceuticals, Inc. was founded in 1999 and is headquartered in Cranbury, New Jersey.