Reviewing Amylyx Pharmaceuticals (NASDAQ:AMLX) and Foghorn Therapeutics (NASDAQ:FHTX)

Foghorn Therapeutics (NASDAQ:FHTX) and Amylyx Pharmaceuticals (NASDAQ:AMLX) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Earnings and Valuation

This table compares Foghorn Therapeutics and Amylyx Pharmaceuticals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Foghorn Therapeutics	$30.91 million	4.04	-$74.28 million	($0.98)	-2.15
Amylyx Pharmaceuticals	$87.37 million	37.43	-$144.74 million	($1.43)	-20.52

Foghorn Therapeutics has higher earnings, but lower revenue than Amylyx Pharmaceuticals. Amylyx Pharmaceuticals is trading at a lower price-to-earnings ratio than Foghorn Therapeutics, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Foghorn Therapeutics and Amylyx Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Foghorn Therapeutics	1	6	4	0	2.27
Amylyx Pharmaceuticals	1	0	7	1	2.89

Foghorn Therapeutics presently has a consensus price target of $6.14, suggesting a potential upside of 191.82%. Amylyx Pharmaceuticals has a consensus price target of $40.71, suggesting a potential upside of 38.72%. Given Foghorn Therapeutics’ higher probable upside, equities analysts plainly believe Foghorn Therapeutics is more favorable than Amylyx Pharmaceuticals.

Profitability

This table compares Foghorn Therapeutics and Amylyx Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Foghorn Therapeutics	-175.78%	N/A	-31.17%
Amylyx Pharmaceuticals	N/A	-52.92%	-48.53%

Risk and Volatility

Foghorn Therapeutics has a beta of 3.22, suggesting that its share price is 222% more volatile than the S&P 500. Comparatively, Amylyx Pharmaceuticals has a beta of -0.09, suggesting that its share price is 109% less volatile than the S&P 500.

Insider and Institutional Ownership

61.5% of Foghorn Therapeutics shares are owned by institutional investors. Comparatively, 95.8% of Amylyx Pharmaceuticals shares are owned by institutional investors. 9.0% of Foghorn Therapeutics shares are owned by company insiders. Comparatively, 10.9% of Amylyx Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Amylyx Pharmaceuticals beats Foghorn Therapeutics on 8 of the 15 factors compared between the two stocks.

About Foghorn Therapeutics

Foghorn Therapeutics Inc., a clinical-stage biopharmaceutical company, engages in the discovery and development of medicines targeting genetically determined dependencies within the chromatin regulatory system in the United States. The company uses its proprietary Gene Traffic Control platform to identify, validate, and potentially drug targets within the system. It develops FHD-286, a small molecule inhibitor of the enzymatic activity of BRG1 and BRM that is in phase I for the treatment of relapsed and/or refractory acute myeloid leukemia/myelodysplastic syndrome. The company is also developing therapies for mutant cancers, such as Non-Small Cell Lung, bladder, endometrial, colorectal, and melanoma cancers; and dependent cancers, including prostate cancer and diffuse large b-cell lymphoma. It has a research collaboration and license agreement with Merck Sharp & Dohme Corp. to discover and develop novel oncology therapeutics against a transcription factor target; and Eli Lilly and Company for developing FHD-909, a selective ATPase inhibitor of BRM. Foghorn Therapeutics Inc. was incorporated in 2015 and is headquartered in Cambridge, Massachusetts.

About Amylyx Pharmaceuticals

Amylyx Pharmaceuticals, Inc is a biopharmaceutical company dedicated to developing treatments for rare and debilitating neurological diseases. Founded in 2013 and headquartered in Cambridge, Massachusetts, the company focuses on leveraging novel approaches to target cellular pathways implicated in neurodegeneration. Amylyx’s research platform centers on small-molecule therapies designed to protect neurons and support cellular health in patients with conditions that currently have limited or no disease-modifying treatment options.