Scholar Rock (NASDAQ:SRRK) and Gilead Sciences (NASDAQ:GILD) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Insider & Institutional Ownership

59.6% of Scholar Rock shares are held by institutional investors. Comparatively, 79.3% of Gilead Sciences shares are held by institutional investors. 41.4% of Scholar Rock shares are held by insiders. Comparatively, 0.2% of Gilead Sciences shares are held by 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.

Volatility & Risk

Scholar Rock has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, Gilead Sciences has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Profitability

This table compares Scholar Rock and Gilead Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Scholar Rock N/A -47.83% -29.49%
Gilead Sciences 12.04% 37.50% 13.13%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Scholar Rock and Gilead Sciences, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Scholar Rock 0 0 2 0 3.00
Gilead Sciences 2 8 13 1 2.54

Scholar Rock presently has a consensus price target of $27.00, indicating a potential upside of 100.15%. Gilead Sciences has a consensus price target of $79.09, indicating a potential upside of 20.07%. Given Scholar Rock’s stronger consensus rating and higher probable upside, research analysts clearly believe Scholar Rock is more favorable than Gilead Sciences.

Earnings and Valuation

This table compares Scholar Rock and Gilead Sciences’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Scholar Rock N/A N/A -$49.33 million ($3.15) -4.28
Gilead Sciences $22.13 billion 3.77 $5.46 billion $6.15 10.71

Gilead Sciences has higher revenue and earnings than Scholar Rock. Scholar Rock is trading at a lower price-to-earnings ratio than Gilead Sciences, indicating that it is currently the more affordable of the two stocks.

Summary

Gilead Sciences beats Scholar Rock on 11 of the 14 factors compared between the two stocks.

About Scholar Rock

Scholar Rock Holding Corporation, a biopharmaceutical company, focuses on the discovery and development of medicines for the treatment of serious diseases in which signaling by protein growth factors plays a fundamental role. Its lead antibody product candidate is SRK-015, an inhibitor of the activation of myostatin, which is in Phase I clinical trials for the treatment of spinal muscular atrophy. The company is also developing SRK-181, an inhibitor of the activation of transforming growth factor beta-1 to treat cancers resistant to checkpoint blockade therapies. In addition, it is developing a pipeline of novel product candidates for a range of serious diseases, including other neuromuscular disorders, cancer, fibrosis, and anemia. The company has a collaboration agreement with Gilead Sciences, Inc. to discover and develop specific inhibitors of transforming growth factor beta activation for the treatment of fibrotic diseases. Scholar Rock Holding Corporation was founded in 2012 and is headquartered in Cambridge, Massachusetts.

About Gilead Sciences

Gilead Sciences, Inc., a research-based biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical needs in the United States, Europe, and internationally. The company's products include Biktarvy, Descovy, Odefsey, Genvoya, Stribild, Complera/Eviplera, Atripla, and Truvada for the treatment of human immunodeficiency virus (HIV) infection in adults; and Vosevi, Vemlidy, Epclusa, Harvoni, and Viread products for treating liver diseases. It also provides Yescarta, a chimeric antigen receptor T cell therapy for adult patients with relapsed or refractory large B-cell lymphoma; Zydelig, a kinase inhibitor; Letairis, an oral formulation of an endothelin receptor antagonist for pulmonary arterial hypertension; Ranexa, a tablet to treat chronic angina; and AmBisome, an antifungal agent to treat serious invasive fungal infections. In addition, the company offers its products under the name Cayston, Emtriva, Hepsera, Sovaldi, and Tybost. Further, it develops product candidates for the treatment of HIV/AIDS and liver diseases, hematology/oncology, inflammation/respiratory diseases, and others. The company markets its products through its commercial teams; and in conjunction with third-party distributors and corporate partners. Gilead Sciences, Inc. has collaboration agreements with Bristol-Myers Squibb Company; Janssen Sciences Ireland UC; Japan Tobacco Inc.; Galapagos NV; Scholar Rock Holding Corporation; Tango Therapeutics; National Cancer Institute; Pfizer, Inc.; Sangamo Therapeutics, Inc.; Gadeta B.V.; HiFiBiO Therapeutics; Agenus Inc.; HOOKIPA Pharma Inc.; Goldfinch Bio, Inc.; and insitro Inc. The company was founded in 1987 and is headquartered in Foster City, California.

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