Gossamer Bio (NASDAQ:GOSS) vs. BridgeBio Pharma (NASDAQ:BBIO) Financial Analysis

Gossamer Bio (NASDAQ:GOSS) and BridgeBio Pharma (NASDAQ:BBIO) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Institutional and Insider Ownership

81.2% of Gossamer Bio shares are held by institutional investors. Comparatively, 99.9% of BridgeBio Pharma shares are held by institutional investors. 5.0% of Gossamer Bio shares are held by company insiders. Comparatively, 24.7% of BridgeBio Pharma shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Gossamer Bio has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500. Comparatively, BridgeBio Pharma has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Valuation and Earnings

This table compares Gossamer Bio and BridgeBio Pharma”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gossamer Bio	N/A	N/A	-$179.82 million	($0.39)	-2.47
BridgeBio Pharma	$9.30 million	523.65	-$643.20 million	($2.63)	-9.85

Gossamer Bio has higher earnings, but lower revenue than BridgeBio Pharma. BridgeBio Pharma is trading at a lower price-to-earnings ratio than Gossamer Bio, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Gossamer Bio and BridgeBio Pharma, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gossamer Bio	0	0	5	0	3.00
BridgeBio Pharma	0	2	11	0	2.85

Gossamer Bio presently has a consensus target price of $9.20, indicating a potential upside of 853.37%. BridgeBio Pharma has a consensus target price of $47.92, indicating a potential upside of 85.01%. Given Gossamer Bio’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Gossamer Bio is more favorable than BridgeBio Pharma.

Profitability

This table compares Gossamer Bio and BridgeBio Pharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gossamer Bio	N/A	-117.33%	-25.02%
BridgeBio Pharma	-207.11%	N/A	-76.71%

Summary

Gossamer Bio beats BridgeBio Pharma on 8 of the 13 factors compared between the two stocks.

About Gossamer Bio

Gossamer Bio, Inc., a clinical-stage biopharmaceutical company, focuses on developing and commercializing seralutinib for the treatment of pulmonary arterial hypertension (PAH) in the United States. The company is developing GB002, an inhaled, small molecule, platelet-derived growth factor receptor, or PDGFR, colony-stimulatin factor 1 receptor and c-KIT inhibitor, which is in Phase 3 clinical trial for the treatment of PAH. It has license agreements with Pulmokine, Inc. to develop and commercialize GB002 and related backup compounds. The company was formerly known as FSG, Bio, Inc. and changed its name to Gossamer Bio, Inc. in 2017. Gossamer Bio, Inc. was incorporated in 2015 and is headquartered in San Diego, California.

About BridgeBio Pharma

BridgeBio Pharma, Inc., a commercial-stage biopharmaceutical company, discovers, creates, tests, and delivers transformative medicines to treat patients who suffer from genetic diseases and cancers. Its products in development programs include AG10, a next-generation oral small molecule near-complete TTR stabilizer that is in Phase 3 clinical trial for the treatment of TTR amyloidosis, or transthyretin amyloid cardiomyopathy (ATTR-CM); low-dose infigratinib, an oral FGFR1-3 selective tyrosine kinase inhibitor, which is in Phase 3 double-blinded, placebo-controlled pivotal study for the treatment option for children with achondroplasia; and BBP-631, an AAV5 gene transfer product candidate that is in Phase 1/2 clinical trial for the treatment of congenital adrenal hyperplasia, or CAH, driven by 21-hydroxylase deficiency, or 21OHD. The company also develops Encaleret, a small molecule antagonist of the calcium sensing receptor, or CaSR, which is in phase 3 clinical trial for treating autosomal dominant hypocalcemia type 1, or ADH1; and BBP-418, a glycosylation substrate pro-drug that is in Phase 3 clinical trial for treating limb-girdle muscular dystrophy type 2I/R9 (LGMD2I/R9). In addition, it engages in developing products for mendelian, oncology, and gene therapy diseases. BridgeBio Pharma, Inc. has license and collaboration agreements with the Leland Stanford Junior University; and Leidos Biomedical Research, Inc. The company was founded in 2015 and is headquartered in Palo Alto, California.