Reviewing Generation Bio (NASDAQ:GBIO) and Nuvation Bio (NYSE:NUVB)

Nuvation Bio (NYSE:NUVB) and Generation Bio (NASDAQ:GBIO) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Earnings and Valuation

This table compares Nuvation Bio and Generation Bio”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nuvation Bio	$7.87 million	226.80	-$567.94 million	($0.63)	-8.28
Generation Bio	$19.89 million	1.87	-$131.67 million	($10.82)	-0.51

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

Profitability

This table compares Nuvation Bio and Generation Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nuvation Bio	-1,413.43%	-46.14%	-36.04%
Generation Bio	-341.12%	-91.07%	-33.65%

Risk & Volatility

Nuvation Bio has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, Generation Bio has a beta of 2.51, meaning that its share price is 151% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Nuvation Bio and Generation Bio, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nuvation Bio	1	0	6	1	2.88
Generation Bio	1	1	2	0	2.25

Nuvation Bio currently has a consensus price target of $7.86, indicating a potential upside of 50.66%. Generation Bio has a consensus price target of $10.67, indicating a potential upside of 93.59%. Given Generation Bio’s higher probable upside, analysts plainly believe Generation Bio is more favorable than Nuvation Bio.

Insider & Institutional Ownership

61.7% of Nuvation Bio shares are held by institutional investors. Comparatively, 95.2% of Generation Bio shares are held by institutional investors. 29.9% of Nuvation Bio shares are held by company insiders. Comparatively, 21.1% of Generation Bio shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Generation Bio beats Nuvation Bio on 8 of the 15 factors compared between the two stocks.

About Nuvation Bio

Nuvation Bio Inc., a clinical-stage biopharmaceutical company, focuses on the development of therapeutic candidates for oncology. The company's lead product candidate is NUV-868, a BD2 selective oral small molecule BET inhibitor that epigenetically regulates proteins that control tumor growth and differentiation, including oncogenes comprising c-myc; NUV-1156, an AR binder Xtandi that address advanced stage prostate cancers with the potential to move into earlier lines typically treated with surgical prostatectomy; and drug-drug conjugate (DDC) platform which leverages a novel therapeutic approach within the drug-conjugate class of anti-cancer therapies to deliver anti-cancer therapeutics to cancer cells, as well as NUV-1176, a PARP inhibitor to address ER+ breast and ovarian cancer. The company was founded in 2018 and is headquartered in New York, New York.

About Generation Bio

Generation Bio Co. develops non-viral genetic medicines for the treatment of rare and prevalent diseases. The company develops cell-targeted lipid nanoparticle (ctLNP) platform, a modular delivery system for nucleic acids to avoid off-target clearance by the liver and spleen that enables ctLNPs to persist in systemic circulation, which allows for highly selective and potent ligand-driven targeting to specific tissues and cell types; and novel immune-quiet DNA (iqDNA) to enable long-lasting high levels of gene expression from non-integrating episomes and avoids innate immune sensors that have long prevented DNA from use in non-viral systems. It uses its platform for developing a portfolio of programs for treating cancer, autoimmune, hematologic disorders, prioritizing sickle cell, beta-thalassemia, and hemophilia A diseases, as well as for other tissues and cell types, including retina, skeletal muscle, and central nervous system. The company was formerly known as Torus Therapeutics, Inc. and changed its name to Generation Bio Co. in November 2017. Generation Bio Co. was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.