Head-To-Head Comparison: Legend Biotech (NASDAQ:LEGN) versus Day One Biopharmaceuticals (NASDAQ:DAWN)

Legend Biotech (NASDAQ:LEGN) and Day One Biopharmaceuticals (NASDAQ:DAWN) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Legend Biotech and Day One Biopharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Legend Biotech	-66.92%	-29.69%	-19.45%
Day One Biopharmaceuticals	N/A	-22.40%	-19.79%

Institutional and Insider Ownership

70.9% of Legend Biotech shares are held by institutional investors. Comparatively, 87.9% of Day One Biopharmaceuticals shares are held by institutional investors. 0.0% of Legend Biotech shares are held by company insiders. Comparatively, 8.4% of Day One Biopharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Legend Biotech and Day One Biopharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Legend Biotech	$627.24 million	9.63	-$518.25 million	($0.48)	-68.50
Day One Biopharmaceuticals	$131.16 million	5.96	-$188.92 million	($1.08)	-7.14

Day One Biopharmaceuticals has lower revenue, but higher earnings than Legend Biotech. Legend Biotech is trading at a lower price-to-earnings ratio than Day One Biopharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Legend Biotech has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500. Comparatively, Day One Biopharmaceuticals has a beta of -1.38, indicating that its share price is 238% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Legend Biotech and Day One Biopharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Legend Biotech	0	1	11	0	2.92
Day One Biopharmaceuticals	0	0	7	1	3.13

Legend Biotech presently has a consensus target price of $79.00, indicating a potential upside of 140.27%. Day One Biopharmaceuticals has a consensus target price of $32.29, indicating a potential upside of 318.75%. Given Day One Biopharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Day One Biopharmaceuticals is more favorable than Legend Biotech.

Summary

Day One Biopharmaceuticals beats Legend Biotech on 9 of the 15 factors compared between the two stocks.

About Legend Biotech

Legend Biotech Corporation, a clinical-stage biopharmaceutical company, through its subsidiaries, engages in the discovery, development, manufacturing, and commercialization of novel cell therapies for oncology and other indications in the United States, China, and internationally. Its lead product candidate, LCAR- B38M, is a chimeric antigen receptor for the treatment of multiple myeloma (MM). The company also has a portfolio of earlier-stage autologous CAR-T product candidates targeting various cancers, including Non-Hodgkins Lymphoma, acute lymphoblastic leukemia, gastric cancer, esophageal cancer, pancreatic cancer, colorectal cancer, hepatocellular carcinoma, small cell lung cancer, and non-small cell lung cancer. It has collaboration and license agreement with Janssen Biotech, Inc. for the development and commercialization of ciltacabtagene autoleucel. The company was founded in 2014 and is based in Somerset, New Jersey. Legend Biotech Corporation is a subsidiary of Genscript Biotech Corporation.

About Day One Biopharmaceuticals

Day One Biopharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops and commercializes targeted therapies for patients with genomically defined cancers. Its lead product candidate is tovorafenib, an oral brain-penetrant type II pan-rapidly accelerated fibrosarcoma kinase inhibitor that is in Phase II clinical trial for pediatric patients with relapsed/ refractory low-grade glioma. The company is also developing Pimasertib, an oral small molecule inhibitor of mitogen-activated protein kinase kinases 1 and 2. Day One Biopharmaceuticals, Inc. was incorporated in 2018 and is headquartered in Brisbane, California.