Scholar Rock (NASDAQ:SRRK – Get Free Report) and 4D Molecular Therapeutics (NASDAQ:FDMT – Get Free Report) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.
Profitability
This table compares Scholar Rock and 4D Molecular Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Scholar Rock | N/A | -145.60% | -91.83% |
| 4D Molecular Therapeutics | N/A | -28.00% | -26.16% |
Insider and Institutional Ownership
91.1% of Scholar Rock shares are held by institutional investors. Comparatively, 99.3% of 4D Molecular Therapeutics shares are held by institutional investors. 19.2% of Scholar Rock shares are held by insiders. Comparatively, 7.3% of 4D Molecular Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Scholar Rock | $33.19 million | 128.99 | -$165.79 million | ($2.35) | -19.46 |
| 4D Molecular Therapeutics | $17,000.00 | 15,799.10 | -$100.84 million | ($2.85) | -2.04 |
4D Molecular Therapeutics has lower revenue, but higher earnings than Scholar Rock. Scholar Rock is trading at a lower price-to-earnings ratio than 4D Molecular Therapeutics, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and target prices for Scholar Rock and 4D Molecular Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Scholar Rock | 0 | 0 | 6 | 1 | 3.14 |
| 4D Molecular Therapeutics | 1 | 1 | 9 | 0 | 2.73 |
Scholar Rock presently has a consensus price target of $40.43, indicating a potential downside of 11.59%. 4D Molecular Therapeutics has a consensus price target of $42.56, indicating a potential upside of 632.45%. Given 4D Molecular Therapeutics’ higher possible upside, analysts clearly believe 4D Molecular Therapeutics is more favorable than Scholar Rock.
Volatility & Risk
Scholar Rock has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, 4D Molecular Therapeutics has a beta of 2.74, indicating that its share price is 174% more volatile than the S&P 500.
Summary
4D Molecular Therapeutics beats Scholar Rock on 9 of the 14 factors compared between the two stocks.
About Scholar Rock
Scholar Rock Holding Corporation, a biopharmaceutical company, focuses on the discovery, development, and delivery of medicines for the treatment of serious diseases in which signaling by protein growth factors plays a fundamental role. The company develops Apitegromab, an inhibitor of the activation of myostatin that is in Phase 3 clinical trial for the treatment of spinal muscular atrophy; and SRK-181, which has completed Phase 1 clinical trials for the treatment of cancers that are resistant to checkpoint inhibitor therapies, such as anti-PD-1 or anti-PD-L1 antibody therapies. It is developing a pipeline of product candidates to deliver novel therapies to treat a range of serious diseases, including neuromuscular disorders, cardiometabolic disorders, cancer, fibrosis, and iron-restricted anemia. Scholar Rock Holding Corporation was founded in 2012 and is headquartered in Cambridge, Massachusetts.
About 4D Molecular Therapeutics
4D Molecular Therapeutics, Inc., a clinical-stage biotherapeutics company, develops genetic medicines using its therapeutic vector evolution platform in the Netherland and the United States. The company develops a portfolio of genetic medicine product candidates focuses in three therapeutic areas for ophthalmology, cardiology, and pulmonology. Its product pipeline includes 4D-150, which is in phase 1/2 clinical trial for the treatment of wet age-related macular degeneration; and is in phase 1/2 clinical trial for the treatment of diabetic macular edema. The company develops 4D-125, which is in phase 1/2 clinical trial for the treatment of x-linked retinitis pigmentosa; 4D-110, which is in phase 1/2 clinical trial for the treatment of choroideremia; 4D-710, which is in phase 1/2 clinical trial for the treatment cystic fibrosis lung disease; and 4D-310 to treat fabry disease cardiomyopathy and is in phase 1/2 clinical trial. In addition, its product candidates comprises 4D-175, which is in pre-clinical development for the treatment for geographic trophy; and 4D-725 to treat alpha-1 antitrypsin deficiency lung disease and is in pre-clinical development. The company has collaboration and licensing agreements with Arbor Biotechnologies, Inc.; Astellas Gene Therapies, Inc; uniQure biopharma B.V.; and Cystic Fibrosis Foundation. 4D Molecular Therapeutics, Inc. was founded in 2013 and is headquartered in Emeryville, California.
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