Analyzing Viridian Therapeutics (NASDAQ:VRDN) & Fractyl Health (NASDAQ:GUTS)

Viridian Therapeutics (NASDAQ:VRDN) and Fractyl Health (NASDAQ:GUTS) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Earnings and Valuation

This table compares Viridian Therapeutics and Fractyl Health”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viridian Therapeutics	$70.85 million	29.23	-$342.60 million	($3.37)	-5.42
Fractyl Health	$90,000.00	665.95	-$140.95 million	($0.88)	-5.14

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

Volatility and Risk

Viridian Therapeutics has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Fractyl Health has a beta of 2.42, meaning that its share price is 142% more volatile than the S&P 500.

Profitability

This table compares Viridian Therapeutics and Fractyl Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Viridian Therapeutics	-505.86%	-72.97%	-42.80%
Fractyl Health	N/A	-1,362.10%	-84.89%

Analyst Ratings

This is a summary of recent ratings for Viridian Therapeutics and Fractyl Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viridian Therapeutics	1	0	12	0	2.85
Fractyl Health	1	1	3	0	2.40

Viridian Therapeutics currently has a consensus price target of $38.69, indicating a potential upside of 111.66%. Fractyl Health has a consensus price target of $66.00, indicating a potential upside of 1,360.18%. Given Fractyl Health’s higher possible upside, analysts clearly believe Fractyl Health is more favorable than Viridian Therapeutics.

Summary

Fractyl Health beats Viridian Therapeutics on 7 of the 12 factors compared between the two stocks.

About Viridian Therapeutics

Viridian Therapeutics, Inc., a biotechnology company, discover and develops treatments for serious and rare diseases. The company's product pipeline includes VRDN-001, a monoclonal antibody targeting insulin-like growth factor-1 receptor that is in Phase 3 clinical trial for the treatment of thyroid eye disease (TED); and VRDN-003, a next generation IGF-1R humanized monoclonal antibodies targeting IGF-1R and incorporating half-life extension technology for the treatment of TED. It also provides VRDN-006 a preclinical program for autoimmune disease. In addition, the company offers VRDN-006 and VRDN-008 a preclinical program for autoimmune disease. The company was formerly known as Miragen Therapeutics, Inc. and changed its name to Viridian Therapeutics, Inc. in January 2021.Viridian Therapeutics, Inc. was founded in 2010 and is headquartered in Waltham, Massachusetts.

About Fractyl Health

Fractyl Health, Inc., a metabolic therapeutics company, develops therapies for the treatment of type 2 diabetes (T2D) and obesity. The company develops Revita DMR System (Revita), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high fat and high sugar diet, which can initiate T2D and obesity in humans. It also develops Rejuva, a novel adeno-associated virus delivered pancreatic gene therapy platform that is designed to enable long-term remission of T2D and obesity by durably altering metabolic hormone function in the pancreatic islet cells of patients. Fractyl Health, Inc. was formerly known as Fractyl Laboratories Inc. and changed its name to Fractyl Health, Inc. on June 09, 2021. The company was incorporated in 2010 and is headquartered in Burlington, Massachusetts.