Critical Comparison: Freeline Therapeutics (NASDAQ:FRLN) & Passage Bio (NASDAQ:PASG)

Freeline Therapeutics (NASDAQ:FRLN) and Passage Bio (NASDAQ:PASG) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Freeline Therapeutics and Passage Bio, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Freeline Therapeutics 0 3 4 0 2.57
Passage Bio 0 1 7 0 2.88

Freeline Therapeutics currently has a consensus price target of $19.17, indicating a potential upside of 392.72%. Passage Bio has a consensus price target of $30.71, indicating a potential upside of 198.20%. Given Freeline Therapeutics’ higher probable upside, research analysts plainly believe Freeline Therapeutics is more favorable than Passage Bio.

Insider & Institutional Ownership

31.5% of Freeline Therapeutics shares are held by institutional investors. Comparatively, 82.2% of Passage Bio shares are held by institutional investors. 25.5% of Passage Bio shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Freeline Therapeutics and Passage Bio’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Freeline Therapeutics N/A N/A -$96.32 million ($6.81) -0.57
Passage Bio N/A N/A -$112.23 million ($2.91) -3.54

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

Profitability

This table compares Freeline Therapeutics and Passage Bio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Freeline Therapeutics N/A N/A N/A
Passage Bio N/A -41.63% -38.91%

Freeline Therapeutics Company Profile

Freeline Therapeutics Holdings plc, a clinical-stage biotechnology company, develops transformative adeno-associated virus (AAV) vector-mediated gene therapies for patients suffering from inherited systemic debilitating diseases. Its advanced product candidate is FLT180a, a gene therapy product candidate that is in Phase 1/2 dose-finding clinical trials in adult males for the treatment of hemophilia B. The company's products also include FLT190, which is in dose-escalating Phase 1/2 clinical trials for the treatment of Fabry disease; FLT201, a liver-directed gene therapy product candidate to treat type 1 Gaucher disease; and FLT210, a liver-directed gene therapy product candidate for the treatment of hemophilia A. In addition, it has research programs in various indications for systemic gene therapy. The company was founded in 2015 and is headquartered in Stevenage, the United Kingdom.

Passage Bio Company Profile

Passage Bio, Inc., a genetic medicines company, develops transformative therapies for rare monogenic central nervous system (CNS) diseases. It develops PBGM01, which utilizes a proprietary, AAVhu68 capsid to deliver to the brain and peripheral tissues a functional GLB1 gene encoding lysosomal acid beta-galactosidase (Ã-gal) for infantile GM1; PBFT02, which utilizes an AAV1 capsid to deliver to the brain a functional granulin, or GRN, gene encoding progranulin, or PGRN, for the treatment of FTD-GRN; and PBKR03, which utilizes a proprietary, AAVhu68 capsid to deliver to the brain and peripheral tissues a functional GALC gene encoding the hydrolytic enzyme galactosylceramidase for infantile Krabbe disease. The company also develops PBML04 for the treatment of metachromatic leukodystrophy; PBAL05 for the treatment of amyotrophic lateral sclerosis; and PBCM06 for the treatment of Charcot-Marie-Tooth Type 2A, as well as programs for the treatment of adult CNS indication. It has a strategic research collaboration with the Trustees of the University of Pennsylvania's Gene Therapy Program; and collaboration agreement, and a development services and clinical supply agreement with Catalent Maryland, Inc. The company was incorporated in 2017 and is headquartered in Philadelphia, Pennsylvania.

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