Head to Head Survey: Histogen (NASDAQ:HSTO) & Roivant Sciences (NASDAQ:ROIV)

Histogen (NASDAQ:HSTO) and Roivant Sciences (NASDAQ:ROIV) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, dividends, risk and earnings.

Risk & Volatility

Histogen has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Roivant Sciences has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

Valuation and Earnings

This table compares Histogen and Roivant Sciences’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Histogen	$3.77 million	0.25	-$10.62 million	($2.81)	-0.08
Roivant Sciences	$124.79 million	65.12	$4.35 billion	$5.06	2.17

Roivant Sciences has higher revenue and earnings than Histogen. Histogen is trading at a lower price-to-earnings ratio than Roivant Sciences, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Histogen and Roivant Sciences, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Histogen	0	0	0	0	N/A
Roivant Sciences	0	1	9	0	2.90

Roivant Sciences has a consensus price target of $17.10, suggesting a potential upside of 55.45%. Given Roivant Sciences’ higher probable upside, analysts plainly believe Roivant Sciences is more favorable than Histogen.

Profitability

This table compares Histogen and Roivant Sciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Histogen	N/A	N/A	N/A
Roivant Sciences	3,484.86%	-25.05%	-20.98%

Insider and Institutional Ownership

64.8% of Roivant Sciences shares are owned by institutional investors. 3.3% of Histogen shares are owned by insiders. Comparatively, 4.6% of Roivant Sciences shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Roivant Sciences beats Histogen on 11 of the 13 factors compared between the two stocks.

About Histogen

Histogen Inc., a clinical-stage therapeutics company, focuses on developing clinical and preclinical small molecule pan-caspase and caspase selective inhibitors that protect the body's natural process to restore immune function. The company's product candidates include emricasan for the treatment of acute bacterial skin and skin structure infections, as well as other infectious diseases. Its preclinical product candidates include CTS-2090 and CTS-2096, which are selective small molecule inhibitors of caspase-1 designed for the treatment of various inflammatory diseases. Histogen Inc. was founded in 2007 and is based in San Diego, California. On April 18, 2024, Histogen Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of California.

About Roivant Sciences

Roivant Sciences Ltd., a commercial-stage biopharmaceutical company, engages in the development and commercialization of medicines for inflammation and immunology areas. The company provides Vants, a model to develop and commercialize its medicines and technologies focusing on biopharmaceutical businesses, discovery-stage companies, and health technology startups. It develops VTAMA, a novel topical for the treatment of psoriasis and atopic dermatitis; batoclimab and IMVT-1402, the fully human monoclonal antibodies targeting the neonatal Fc receptor across various IgG-mediated autoimmune indications; and RVT-3101, an anti-TL1A antibody for ulcerative colitis and Crohn's disease. The company was founded in 2014 and is based in London, the United Kingdom.