Vir Biotechnology (NASDAQ:VIR) and Coherus BioSciences (NASDAQ:CHRS) Critical Analysis

Vir Biotechnology (NASDAQ:VIR) and Coherus BioSciences (NASDAQ:CHRS) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Volatility and Risk

Vir Biotechnology has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, Coherus BioSciences has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Profitability

This table compares Vir Biotechnology and Coherus BioSciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vir Biotechnology	-678.40%	-36.71%	-31.00%
Coherus BioSciences	-0.15%	N/A	-24.44%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Vir Biotechnology and Coherus BioSciences, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vir Biotechnology	0	2	3	0	2.60
Coherus BioSciences	0	1	3	0	2.75

Vir Biotechnology currently has a consensus price target of $36.40, suggesting a potential upside of 425.25%. Coherus BioSciences has a consensus price target of $6.13, suggesting a potential upside of 645.59%. Given Coherus BioSciences’ stronger consensus rating and higher probable upside, analysts plainly believe Coherus BioSciences is more favorable than Vir Biotechnology.

Valuation & Earnings

This table compares Vir Biotechnology and Coherus BioSciences”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vir Biotechnology	$62.04 million	15.38	-$615.06 million	($3.92)	-1.77
Coherus BioSciences	$257.24 million	0.37	-$237.89 million	($0.08)	-10.27

Coherus BioSciences has higher revenue and earnings than Vir Biotechnology. Coherus BioSciences is trading at a lower price-to-earnings ratio than Vir Biotechnology, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

65.3% of Vir Biotechnology shares are held by institutional investors. Comparatively, 72.8% of Coherus BioSciences shares are held by institutional investors. 15.6% of Vir Biotechnology shares are held by company insiders. Comparatively, 7.6% of Coherus BioSciences shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Coherus BioSciences beats Vir Biotechnology on 10 of the 13 factors compared between the two stocks.

About Vir Biotechnology

Vir Biotechnology, Inc., an immunology company, develops therapeutic products to treat and prevent serious infectious diseases. Its clinical development pipeline consists of product candidates targeting hepatitis delta virus (HDV), hepatitis B virus (HBV), and human immunodeficiency virus (HIV). The company’s preclinical candidates include those targeting influenza A and B, coronavirus disease 2019, respiratory syncytial virus (RSV) and human metapneumovirus (MPV), and human papillomavirus (HPV). The company has grant agreements with Bill & Melinda Gates Foundation and National Institutes of Health; an option and license agreement with Brii Biosciences Limited; a collaboration and license agreement with Alnylam Pharmaceuticals, Inc.; license agreements with MedImmune, LLC; collaboration with WuXi Biologics (Hong Kong) Limited and Glaxo Wellcome UK Ltd.; and a collaborative research agreement with GlaxoSmithKline Biologicals S.A, as well as license agreement with Sanofi for three clinical-stage masked T-cell engagers (TCEs) and exclusive use of the protease-cleavable masking platform for oncology and infectious diseases. It also has a manufacturing agreement with Samsung Biologics Co.,Ltd. The company was incorporated in 2016 and is headquartered in San Francisco, California.

About Coherus BioSciences

Coherus BioSciences, Inc., a biopharmaceutical company, focuses on the research, development, and commercialization of cancer treatments primarily in the United States. The company develops UDENYCA, a biosimilar to Neulasta, a long-acting granulocyte-colony stimulating factor; LOQTORZI, a novel PD-1 inhibitor; and Casdozokitug, an investigational recombinant human immunoglobulin isotype G1 (IgG1) monoclonal antibody targeting interleukin 27. It is also developing CHS-114, an investigational highly specific human afucosylated IgG1 monoclonal antibody selectively targeting CCR8, a chemokine receptor highly expressed on Treg cells in the tumor microenvironment (TME); and CHS-1000, an antibody targeting human ILT4 designed to improve anti-PD-1 clinical benefit by transforming an unfavorable TME to a more favorable TME. In addition, the company’s licensed immuno-oncology programs include NZV930, an antibody designed to inhibit cluster of differentiation 73; and GSK4381562, an antibody targeting CD112R for the treatment of solid tumors. Further, it offers YUSIMRY, a biosimilar to Humira for the treatment of patients with inflammatory diseases characterized by increased production of tumor necrosis factor (TNF) in the body, including rheumatoid arthritis, juvenile idiopathic arthritis, psoriatic arthritis, ankylosing spondylitis, Crohn’s disease, psoriasis, and ulcerative colitis. It collaboration agreement with Junshi Biosciences for the co-development and commercialization of toripalimab; agreement with Surface and Adimab LLC; license agreements with Bioeq AG and Genentech, Inc., as well as Vaccinex, Inc.; and out-licensing agreement with Novartis Institutes for Biomedical Research, Inc. and GlaxoSmithKline Intellectual Property No. 4 Limited. The company was formerly known as BioGenerics, Inc. and changed its name to Coherus BioSciences, Inc. in April 2012. Coherus BioSciences, Inc. was incorporated in 2010 and is headquartered in Redwood City, California.