Passage Bio (NASDAQ:PASG – Get Free Report) and Lexeo Therapeutics (NASDAQ:LXEO – Get Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.
Institutional and Insider Ownership
53.5% of Passage Bio shares are held by institutional investors. Comparatively, 60.7% of Lexeo Therapeutics shares are held by institutional investors. 4.3% of Passage Bio shares are held by insiders. Comparatively, 4.5% of Lexeo Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Passage Bio and Lexeo Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Passage Bio | N/A | -72.53% | -52.10% |
| Lexeo Therapeutics | N/A | -57.66% | -48.18% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Passage Bio | N/A | N/A | -$102.06 million | ($1.17) | -0.43 |
| Lexeo Therapeutics | $650,000.00 | 329.13 | -$66.39 million | ($3.16) | -2.05 |
Lexeo Therapeutics has higher revenue and earnings than Passage Bio. Lexeo Therapeutics is trading at a lower price-to-earnings ratio than Passage Bio, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Passage Bio and Lexeo Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Passage Bio | 0 | 0 | 3 | 0 | 3.00 |
| Lexeo Therapeutics | 0 | 0 | 8 | 1 | 3.11 |
Passage Bio presently has a consensus price target of $9.00, suggesting a potential upside of 1,682.18%. Lexeo Therapeutics has a consensus price target of $22.71, suggesting a potential upside of 251.07%. Given Passage Bio’s higher probable upside, analysts plainly believe Passage Bio is more favorable than Lexeo Therapeutics.
Summary
Lexeo Therapeutics beats Passage Bio on 9 of the 12 factors compared between the two stocks.
About Passage Bio
Passage Bio, Inc., a genetic medicines company, develops gene therapies for central nervous system diseases. It develops PBGM01, a functional GLB1 gene encoding ß-galactosidase for infantile GM1; PBFT02, a functional granulin (GRN) and gene encoding progranulin (PGRN) for the treatment of FTD caused by progranulin deficiency; and PBKR03, a functional GALC gene encoding the hydrolytic enzyme galactosylceramidase for infantile Krabbe disease. The company develops PBML04 for the treatment of metachromatic leukodystrophy; PBAL05 for the treatment of amyotrophic lateral sclerosis; and other program for huntington's disease. It has a strategic research collaboration with the Trustees of the University of Pennsylvania's Gene Therapy Program; and collaboration agreement, and a development services and clinical supply agreement with Catalent Maryland, Inc. Passage Bio, Inc. was incorporated in 2017 and is headquartered in Philadelphia, Pennsylvania.
About Lexeo Therapeutics
Lexeo Therapeutics, Inc. operates as a clinical stage genetic medicine company that focuses on hereditary and acquired diseases. The company develops LX2006, which is an AAVrh10-based gene therapy candidate for the treatment of Friedreich's ataxia (FA) cardiomyopathy; LX2020, an AAVrh10-based gene therapy candidate for the treatment of plakophilin-2 arrhythmogenic cardiomyopathy; LX2021, a gene therapy candidate for the treatment of DSP cardiomyopathy associated with it; and LX2022, a gene therapy candidate for the treatment of hypertrophic cardiomyopathy, or HCM caused by TNNI3 gene. It also develops LX1001, an AAVrh10-based gene therapy candidate for the treatment of APOE4 homozygous; LX1020, a gene therapy candidate for the treatment of APOE4 homozygous; LX1021 for the treatment of APOE4 homozygotes; and LX1004 for the treatment of CLN2 Batten disease. The company was incorporated in 2017 and is based in New York, New York.
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