Critical Review: Disc Medicine (NASDAQ:IRON) versus eXoZymes (NASDAQ:EXOZ)

Disc Medicine (NASDAQ:IRON) and eXoZymes (NASDAQ:EXOZ) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Institutional & Insider Ownership

83.7% of Disc Medicine shares are held by institutional investors. 3.6% of Disc Medicine shares are held by company insiders. Comparatively, 72.4% of eXoZymes shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Disc Medicine and eXoZymes, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Disc Medicine	1	1	11	0	2.77
eXoZymes	1	0	0	0	1.00

Disc Medicine currently has a consensus price target of $119.45, suggesting a potential upside of 48.27%. Given Disc Medicine’s stronger consensus rating and higher probable upside, research analysts plainly believe Disc Medicine is more favorable than eXoZymes.

Earnings & Valuation

This table compares Disc Medicine and eXoZymes”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Disc Medicine	N/A	N/A	-$109.36 million	($5.35)	-15.06
eXoZymes	N/A	N/A	-$5.86 million	($0.77)	-13.84

Disc Medicine is trading at a lower price-to-earnings ratio than eXoZymes, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Disc Medicine and eXoZymes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Disc Medicine	N/A	-31.61%	-28.96%
eXoZymes	N/A	-104.58%	-79.55%

Volatility and Risk

Disc Medicine has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, eXoZymes has a beta of 2.38, suggesting that its stock price is 138% more volatile than the S&P 500.

Summary

Disc Medicine beats eXoZymes on 6 of the 11 factors compared between the two stocks.

About Disc Medicine

Disc Medicine, Inc., together with its subsidiaries, a clinical-stage biopharmaceutical company, engages in the discovery, development, and commercialization of novel treatments for patients suffering from serious hematologic diseases in the United States. The company has assembled a portfolio of clinical and preclinical product candidates that aim to modify fundamental biological pathways associated with the formation and function of red blood cells, primarily heme biosynthesis and iron homeostasis. Its pipeline includes bitopertin for the treatment of erythropoietic porphyrias, including erythropoietic protoporphyria, X-linked protoporphyria, and diamond-blackfan anemia; DISC-0974 for the treatment of anemia of myelofibrosis, and anemia of chronic kidney disease; and DISC-3405 for the treatment of polycythemia vera, and other hematologic disorders. The company’s preclinical programs include DISC-0998, for the treatment of anemia associated with inflammatory diseases. Disc Medicine, Inc. was founded in 2017 and is headquartered in Watertown, Massachusetts.

About eXoZymes

eXoZymes, Inc. is a development stage synthetic biochemical company. Its synthetic biology platform would enable the scalable exploration of many molecules and properties found in nature. The company was founded by Tyler Korman and Paul Opgenorth in April 2019 and is headquartered in Monrovia, NV.