Gossamer Bio (NASDAQ:GOSS) and Agios Pharmaceuticals (NASDAQ:AGIO) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Profitability

This table compares Gossamer Bio and Agios Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gossamer Bio N/A -54.78% -37.96%
Agios Pharmaceuticals -356.42% -70.07% -50.70%

Institutional & Insider Ownership

61.6% of Gossamer Bio shares are owned by institutional investors. 23.3% of Gossamer Bio shares are owned by company insiders. Comparatively, 3.2% of Agios Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Gossamer Bio and Agios Pharmaceuticals’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gossamer Bio N/A N/A -$146.97 million ($22.59) -0.67
Agios Pharmaceuticals $94.39 million 30.29 -$346.02 million ($6.03) -8.05

Gossamer Bio has higher earnings, but lower revenue than Agios Pharmaceuticals. Agios Pharmaceuticals 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 Ratings

This is a breakdown of current recommendations and price targets for Gossamer Bio and Agios Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gossamer Bio 0 0 7 0 3.00
Agios Pharmaceuticals 0 2 11 0 2.85

Gossamer Bio presently has a consensus target price of $29.17, indicating a potential upside of 92.65%. Agios Pharmaceuticals has a consensus target price of $65.50, indicating a potential upside of 34.88%. Given Gossamer Bio’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Gossamer Bio is more favorable than Agios Pharmaceuticals.

Summary

Gossamer Bio beats Agios Pharmaceuticals on 9 of the 12 factors compared between the two stocks.

About Gossamer Bio

Gossamer Bio, Inc., a clinical-stage biopharmaceutical company, focuses on discovering, acquiring, developing, and commercializing therapeutics in the disease areas of immunology, inflammation, and oncology in the United States. It is developing GB001, an oral antagonist of prostaglandin D2 receptor 2 that is in Phase IIb clinical trial for the treatment of moderate-to-severe eosinophilic asthma, as well as that has completed Phase I clinical trial for chronic rhinosinusitis with nasal polyps, without nasal polyps, and chronic spontaneous urticarial; GB002, a platelet-derived growth factor, receptor kinase inhibitor that is in Phase I clinical trial for the treatment of pulmonary arterial hypertension; GB004, an oral small molecule that has completed Phase I clinical trial for the treatment of inflammatory bowel diseases; and GB1275, an oral small molecule for the treatment of oncology indications. It has license agreement with Pulmokine, Inc. to develop and commercialize GB002 and related backup compounds; and Aerpio Pharmaceuticals, Inc. to develop and commercialize GB004 and related compounds. The company was formerly known as FSG, Bio, Inc. and changed its name to Gossamer Bio, Inc. in 2017. Gossamer Bio, Inc. was founded in 2015 and is headquartered in San Diego, California.

About Agios Pharmaceuticals

Agios Pharmaceuticals, Inc. is a biopharmaceutical company, which engages in the discovery and development of novel investigational medicines to treat cancer and rare genetic diseases. It focuses on diseases that are directly caused by changes in genes or chromosomes, often passed from one generation to the next. The company was founded by Lewis Clayton Cantley, Tak W. Mak, Craig B. Thompson and Shin-Shan Michael Su on August 7, 2007 and is headquartered in Cambridge, MA.

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