Neurogene (NASDAQ:NGNE – Get Free Report) and Ultragenyx Pharmaceutical (NASDAQ:RARE – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Profitability
This table compares Neurogene and Ultragenyx Pharmaceutical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Neurogene | N/A | -45.10% | -41.00% |
| Ultragenyx Pharmaceutical | -81.79% | N/A | -44.40% |
Institutional and Insider Ownership
52.4% of Neurogene shares are held by institutional investors. Comparatively, 97.7% of Ultragenyx Pharmaceutical shares are held by institutional investors. 11.7% of Neurogene shares are held by company insiders. Comparatively, 5.2% of Ultragenyx Pharmaceutical shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and price targets for Neurogene and Ultragenyx Pharmaceutical, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Neurogene | 1 | 0 | 5 | 2 | 3.00 |
| Ultragenyx Pharmaceutical | 1 | 11 | 9 | 1 | 2.45 |
Neurogene presently has a consensus target price of $80.29, suggesting a potential upside of 191.42%. Ultragenyx Pharmaceutical has a consensus target price of $33.65, suggesting a potential upside of 109.01%. Given Neurogene’s stronger consensus rating and higher probable upside, analysts clearly believe Neurogene is more favorable than Ultragenyx Pharmaceutical.
Risk & Volatility
Neurogene has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500. Comparatively, Ultragenyx Pharmaceutical has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.
Valuation & Earnings
This table compares Neurogene and Ultragenyx Pharmaceutical”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Neurogene | $930,000.00 | 592.77 | -$90.35 million | ($5.03) | -5.48 |
| Ultragenyx Pharmaceutical | $717.00 million | 2.21 | -$575.00 million | ($5.84) | -2.76 |
Neurogene has higher earnings, but lower revenue than Ultragenyx Pharmaceutical. Neurogene is trading at a lower price-to-earnings ratio than Ultragenyx Pharmaceutical, indicating that it is currently the more affordable of the two stocks.
Summary
Neurogene beats Ultragenyx Pharmaceutical on 10 of the 15 factors compared between the two stocks.
About Neurogene
Neurogene Inc., a biotechnology company, develops genetic medicines for rare neurological diseases. The company's product candidates include NGN-401 which is packaged in an adeno-associated virus 9 that is in Phase 1/2 clinical trial for the treatment of Rett syndrome; and NGN-101, a conventional gene therapy candidate that is in Phase 1/2 clinical trial to treat CLN5 Batten disease. It has a license agreement with The University of North Carolina, the University of Edinburgh, Virovek, Inc., and Sigma-Aldrich Co. LLC. The company is headquartered in New York, New York.
About Ultragenyx Pharmaceutical
Ultragenyx Pharmaceutical Inc., a biopharmaceutical company, focuses on the identification, acquisition, development, and commercialization of novel products for the treatment of rare and ultra-rare genetic diseases in North America, Latin America, Japan, Europe, and internationally. Its biologic products include Crysvita (burosumab), an antibody targeting fibroblast growth factor 23 for the treatment of X-linked hypophosphatemia, as well as tumor-induced osteomalacia; Mepsevii, an enzyme replacement therapy for the treatment of children and adults with Mucopolysaccharidosis VII; Dojolvi for treating long-chain fatty acid oxidation disorders; and Evkeeza (evinacumab) for the treatment of homozygous familial hypercholesterolemia. The company's products candidatures include DTX401, an adeno-associated virus 8 (AAV8) gene therapy clinical candidate for the treatment of patients with glycogen storage disease type Ia; DTX301, an AAV8 gene therapy for the treatment of patients with ornithine transcarbamylase; UX143, a human monoclonal antibody for the treatment of osteogenesis imperfecta; GTX-102, an antisense oligonucleotide for the treatment of Angelman syndrome; UX111, an AAV9 gene therapy product candidate for the treatment of patients with Sanfilippo syndrome type A, or MPS IIIA, a rare lysosomal storage disease; UX701, for the treatment of Wilson disease; and UX053 for the treatment of glycogen storage disease type III. Ultragenyx Pharmaceutical Inc. has collaboration and license agreement with Kyowa Kirin Co., Ltd.; Saint Louis University; Baylor Research Institute; REGENXBIO Inc.; Bayer Healthcare LLC; GeneTx; Mereo; University of Pennsylvania; Arcturus Therapeutics Holdings Inc.; Solid Biosciences Inc.; Regeneron; Abeona; and Daiichi Sankyo Co., Ltd. The company was incorporated in 2010 and is headquartered in Novato, California.
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