Analyzing Disc Medicine (NASDAQ:IRON) & Ultragenyx Pharmaceutical (NASDAQ:RARE)

Ultragenyx Pharmaceutical (NASDAQ:RARE) and Disc Medicine (NASDAQ:IRON) are both small-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.

Earnings and Valuation

This table compares Ultragenyx Pharmaceutical and Disc Medicine”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ultragenyx Pharmaceutical	$673.00 million	2.24	-$575.00 million	($5.84)	-2.62
Disc Medicine	N/A	N/A	-$212.18 million	($6.58)	-12.04

Disc Medicine has lower revenue, but higher earnings than Ultragenyx Pharmaceutical. Disc Medicine is trading at a lower price-to-earnings ratio than Ultragenyx Pharmaceutical, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

97.7% of Ultragenyx Pharmaceutical shares are held by institutional investors. Comparatively, 83.7% of Disc Medicine shares are held by institutional investors. 5.2% of Ultragenyx Pharmaceutical shares are held by insiders. Comparatively, 3.8% of Disc Medicine shares are held 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 and Risk

Ultragenyx Pharmaceutical has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500. Comparatively, Disc Medicine has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Profitability

This table compares Ultragenyx Pharmaceutical and Disc Medicine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ultragenyx Pharmaceutical	-81.79%	-1,024.42%	-44.40%
Disc Medicine	N/A	-37.17%	-33.65%

Analyst Recommendations

This is a summary of current ratings for Ultragenyx Pharmaceutical and Disc Medicine, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ultragenyx Pharmaceutical	1	9	10	1	2.52
Disc Medicine	1	1	10	0	2.75

Ultragenyx Pharmaceutical currently has a consensus target price of $36.63, suggesting a potential upside of 139.42%. Disc Medicine has a consensus target price of $107.70, suggesting a potential upside of 35.93%. Given Ultragenyx Pharmaceutical’s higher possible upside, equities analysts clearly believe Ultragenyx Pharmaceutical is more favorable than Disc Medicine.

Summary

Ultragenyx Pharmaceutical beats Disc Medicine on 7 of the 13 factors compared between the two stocks.

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.

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.