Critical Comparison: Generation Bio (NASDAQ:GBIO) versus Bio-Path (NASDAQ:BPTH)

Generation Bio (NASDAQ:GBIO) and Bio-Path (NASDAQ:BPTH) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Profitability

This table compares Generation Bio and Bio-Path’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Generation Bio	-1,696.87%	-82.33%	-46.73%
Bio-Path	N/A	-1,037.30%	-337.80%

Institutional & Insider Ownership

95.2% of Generation Bio shares are held by institutional investors. Comparatively, 5.7% of Bio-Path shares are held by institutional investors. 21.1% of Generation Bio shares are held by company insiders. Comparatively, 3.1% of Bio-Path shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Generation Bio and Bio-Path’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Generation Bio	$5.90 million	30.78	-$126.61 million	($2.55)	-1.07
Bio-Path	N/A	N/A	-$16.08 million	N/A	N/A

Bio-Path has lower revenue, but higher earnings than Generation Bio.

Volatility & Risk

Generation Bio has a beta of 2.83, meaning that its share price is 183% more volatile than the S&P 500. Comparatively, Bio-Path has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Generation Bio and Bio-Path, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Generation Bio	0	4	2	0	2.33
Bio-Path	0	0	1	0	3.00

Generation Bio presently has a consensus target price of $8.00, suggesting a potential upside of 193.04%. Bio-Path has a consensus target price of $20.00, suggesting a potential upside of 920.41%. Given Bio-Path’s stronger consensus rating and higher probable upside, analysts plainly believe Bio-Path is more favorable than Generation Bio.

Summary

Generation Bio beats Bio-Path on 7 of the 11 factors compared between the two stocks.

About Generation Bio

Generation Bio Co. develops non-viral genetic medicines for the treatment of rare and prevalent diseases. The company develops cell-targeted lipid nanoparticle (ctLNP) platform, a modular delivery system for nucleic acids to avoid off-target clearance by the liver and spleen that enables ctLNPs to persist in systemic circulation, which allows for highly selective and potent ligand-driven targeting to specific tissues and cell types; and novel immune-quiet DNA (iqDNA) to enable long-lasting high levels of gene expression from non-integrating episomes and avoids innate immune sensors that have long prevented DNA from use in non-viral systems. It uses its platform for developing a portfolio of programs for treating cancer, autoimmune, hematologic disorders, prioritizing sickle cell, beta-thalassemia, and hemophilia A diseases, as well as for other tissues and cell types, including retina, skeletal muscle, and central nervous system. The company was formerly known as Torus Therapeutics, Inc. and changed its name to Generation Bio Co. in November 2017. Generation Bio Co. was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.

About Bio-Path

Bio-Path Holdings, Inc. operates as a clinical and preclinical stage oncology focused RNAi nanoparticle drug development company in the United States. The company develops products based on DNAbilize, a drug delivery and antisense technology platform that uses P-ethoxy, which is a deoxyribonucleic acid (DNA) backbone modification intended to protect the DNA from destruction. Its lead drug candidate is prexigebersen, which is in Phase II clinical trials for the treatment of acute myeloid leukemia (AML) and myelodysplastic syndrome. It is also developing BP1001-A that is in Phase I clinical trial for the treatment of solid tumors; Liposomal Bcl-2 (BP1002), which is in Phase I clinical trial for the treatment of refractory/relapsed lymphoma and chronic lymphocytic leukemia; and Liposomal STAT3 (BP1003) for treating pancreatic cancer, non-small cell lung cancer, and AML. The company was founded in 2007 and is based in Bellaire, Texas.