Contrasting Generation Bio (NASDAQ:GBIO) and Northwest Biotherapeutics (OTCMKTS:NWBO)

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Generation Bio and Northwest Biotherapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Generation Bio	0	3	2	0	2.40
Northwest Biotherapeutics	0	0	0	0	N/A

Generation Bio currently has a consensus target price of $7.50, suggesting a potential upside of 202.42%. Given Generation Bio’s higher possible upside, equities analysts clearly believe Generation Bio is more favorable than Northwest Biotherapeutics.

Profitability

This table compares Generation Bio and Northwest Biotherapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Generation Bio	-1,202.56%	-92.86%	-48.47%
Northwest Biotherapeutics	-4,479.03%	N/A	-253.74%

Volatility and Risk

Generation Bio has a beta of 2.81, indicating that its share price is 181% more volatile than the S&P 500. Comparatively, Northwest Biotherapeutics has a beta of -0.58, indicating that its share price is 158% less volatile than the S&P 500.

Earnings and Valuation

This table compares Generation Bio and Northwest Biotherapeutics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Generation Bio	$13.17 million	12.52	-$126.61 million	($2.55)	-0.97
Northwest Biotherapeutics	$1.93 million	197.89	-$62.60 million	($0.07)	-4.43

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

Institutional & Insider Ownership

95.2% of Generation Bio shares are owned by institutional investors. Comparatively, 0.0% of Northwest Biotherapeutics shares are owned by institutional investors. 21.1% of Generation Bio shares are owned by company insiders. Comparatively, 8.7% of Northwest Biotherapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Generation Bio beats Northwest Biotherapeutics on 9 of the 13 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 Northwest Biotherapeutics

Northwest Biotherapeutics, Inc., a biotechnology company, develops personalized immune therapies for cancer in the United States and internationally. The company develops its products based on DCVax, a platform technology that uses activated dendritic cells to mobilize a patient's own immune system to attack cancer. Its lead product, DCVax-L, which has completed Phase III clinical trials to treat Glioblastoma multiforme brain cancer. The company also develops DCVax-Direct, which is in Phase I/II clinical trials to treat inoperable solid tumors. The company was founded in 1996 and is headquartered in Bethesda, Maryland.