Financial Contrast: GH Research (NASDAQ:GHRS) and Gemini Therapeutics (NASDAQ:GMTX)

GH Research (NASDAQ:GHRS) and Gemini Therapeutics (NASDAQ:GMTX) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for GH Research and Gemini Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GH Research	0	0	3	0	3.00
Gemini Therapeutics	0	0	0	0	N/A

GH Research currently has a consensus target price of $36.67, suggesting a potential upside of 332.90%. Given GH Research’s higher possible upside, research analysts plainly believe GH Research is more favorable than Gemini Therapeutics.

Profitability

This table compares GH Research and Gemini Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GH Research	N/A	-14.56%	-14.10%
Gemini Therapeutics	N/A	-38.78%	-35.88%

Earnings and Valuation

This table compares GH Research and Gemini Therapeutics’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GH Research	N/A	N/A	-$35.59 million	($0.62)	-13.66
Gemini Therapeutics	N/A	N/A	-$71.87 million	($1.00)	-50.20

Gemini Therapeutics is trading at a lower price-to-earnings ratio than GH Research, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

56.9% of GH Research shares are owned by institutional investors. Comparatively, 75.4% of Gemini Therapeutics shares are owned by institutional investors. 41.6% of GH Research shares are owned by insiders. Comparatively, 12.9% of Gemini Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

GH Research has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Gemini Therapeutics has a beta of -0.12, suggesting that its share price is 112% less volatile than the S&P 500.

Summary

GH Research beats Gemini Therapeutics on 9 of the 10 factors compared between the two stocks.

About GH Research

GH Research PLC, together with its subsidiary GH Research Ireland Limited, engages in developing various therapies to treat psychiatric and neurological disorders. It is involved in the development of 5-Methoxy-N,N-Dimethyltryptamine (5-MeO-DMT) therapies for the treatment of patients with treatment-resistant depression (TRD). The company's lead program is GH001, an inhalable mebufotenin product candidate, currently under Phase 2b clinical trial for the treatment of patients with TRD, as well as Phase 2a clinical trials for the treatment of Bipolar II disorder and postpartum depression. It is also involved in the development of GH002, an intravenous mebufotenin product candidate for IV administration, currently under Phase 1 clinical trials for the treatment of psychiatric or neurological disorder; and GH003, an intranasal mebufotenin product candidate for nasal administration, which is currently in preclinical development with a focus on psychiatric and neurological disorders. The company was founded in 2018 and is based in Dublin, Ireland.

About Gemini Therapeutics

Gemini Therapeutics, Inc., a clinical stage precision medicine company, engages in developing various therapeutic compounds for treating genetically defined age-related macular degeneration (AMD). Its lead candidate is GEM103, a recombinant form of the human complement factor H protein to treat dry AMD patients. The company also develops GEM307 for treatment of systemic diseases. Gemini Therapeutics, Inc. was founded in 2015 and is headquartered in Cambridge, Massachusetts.