Comparing NewAmsterdam Pharma (NASDAQ:NAMS) and Biogen (NASDAQ:BIIB)

Biogen (NASDAQ:BIIB) and NewAmsterdam Pharma (NASDAQ:NAMS) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Insider and Institutional Ownership

87.9% of Biogen shares are owned by institutional investors. Comparatively, 89.9% of NewAmsterdam Pharma shares are owned by institutional investors. 0.3% of Biogen shares are owned by insiders. Comparatively, 12.7% of NewAmsterdam Pharma shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Biogen has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500. Comparatively, NewAmsterdam Pharma has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500.

Earnings and Valuation

This table compares Biogen and NewAmsterdam Pharma”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Biogen	$10.03 billion	3.20	$1.29 billion	$5.65	38.43
NewAmsterdam Pharma	$22.50 million	121.13	-$203.82 million	($2.16)	-10.56

Biogen has higher revenue and earnings than NewAmsterdam Pharma. NewAmsterdam Pharma is trading at a lower price-to-earnings ratio than Biogen, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Biogen and NewAmsterdam Pharma, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Biogen	1	13	18	1	2.58
NewAmsterdam Pharma	1	1	10	1	2.85

Biogen currently has a consensus price target of $230.14, suggesting a potential upside of 5.98%. NewAmsterdam Pharma has a consensus price target of $49.73, suggesting a potential upside of 118.10%. Given NewAmsterdam Pharma’s stronger consensus rating and higher possible upside, analysts plainly believe NewAmsterdam Pharma is more favorable than Biogen.

Profitability

This table compares Biogen and NewAmsterdam Pharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Biogen	8.32%	11.18%	6.88%
NewAmsterdam Pharma	-3,644.21%	-34.81%	-31.50%

Summary

Biogen beats NewAmsterdam Pharma on 9 of the 14 factors compared between the two stocks.

About Biogen

Biogen Inc. discovers, develops, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases in the United States, Europe, Germany, Asia, and internationally. The company provides TECFIDERA, VUMERITY, AVONEX, PLEGRIDY, TYSABRI, and FAMPYRA for multiple sclerosis (MS); SPINRAZA for spinal muscular atrophy; ADUHELM to treat Alzheimer’s disease; FUMADERM to treat plaque psoriasis; BENEPALI, an etanercept biosimilar referencing ENBREL; IMRALDI, an adalimumab biosimilar referencing HUMIRA; FLIXABI, an infliximab biosimilar referencing REMICADE; and BYOOVIZ, a ranibizumab biosimilar referencing LUCENTIS. It offers RITUXAN for treating non-Hodgkin’s lymphoma, chronic lymphocytic leukemia (CLL), rheumatoid arthritis, two forms of ANCA-associated vasculitis, and pemphigus vulgaris; RITUXAN HYCELA for non-Hodgkin’s lymphoma and CLL; GAZYVA to treat CLL and follicular lymphoma; OCREVUS for relapsing MS and primary progressive MS; LUNSUMIO to treat relapsed or refractory follicular lymphoma; glofitamab for non-Hodgkin’s lymphoma; and other anti-CD20 therapies. In addition, the company is developing various products for the treatment of MS, Alzheimer’s disease and dementia, neuromuscular disorders, Parkinson’s disease and movement disorders, neuropsychiatry, genetic neurodevelopmental disorders, and biosimilars, which are under various stages of development. It has collaboration and license agreements with Acorda Therapeutics, Inc.; Alkermes Pharma Ireland Limited; Denali Therapeutics Inc.; Eisai Co., Ltd.; Genentech, Inc.; Neurimmune SubOne AG; Ionis Pharmaceuticals, Inc.; Samsung Bioepis Co., Ltd.; Sangamo Therapeutics, Inc.; and Sage Therapeutics, Inc., as well as collaboration with Fujirebio to potentially identify and develop blood-based biomarkers for tau pathology in the brain. The company was founded in 1978 and is headquartered in Cambridge, Massachusetts.

About NewAmsterdam Pharma

NewAmsterdam Pharma Company N.V., a late-stage biopharmaceutical company, develops therapies to enhance patient care in populations with metabolic disease. It is developing obicetrapib, an oral low-dose cholesteryl ester transfer protein (CETP) inhibitor, that is in various clinical trials as a monotherapy and a combination therapy with ezetimibe for lowering LDL-C for cardiovascular diseases. The company also develops Obicetrapib which is in Phase 2a clinical trial for Alzheimer’s disease. NewAmsterdam Pharma Company N.V. is headquartered in Naarden, the Netherlands.