Analyzing Biogen (NASDAQ:BIIB) and Fulcrum Therapeutics (NASDAQ:FULC)

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

Institutional and Insider Ownership

89.8% of Fulcrum Therapeutics shares are held by institutional investors. Comparatively, 87.9% of Biogen shares are held by institutional investors. 7.3% of Fulcrum Therapeutics shares are held by insiders. Comparatively, 0.3% of Biogen shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Fulcrum Therapeutics and Biogen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fulcrum Therapeutics	N/A	-25.38%	-24.15%
Biogen	8.32%	11.18%	6.88%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Fulcrum Therapeutics and Biogen, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fulcrum Therapeutics	4	7	1	0	1.75
Biogen	1	13	18	1	2.58

Fulcrum Therapeutics presently has a consensus target price of $8.20, suggesting a potential upside of 115.79%. Biogen has a consensus target price of $230.14, suggesting a potential upside of 5.98%. Given Fulcrum Therapeutics’ higher probable upside, equities analysts plainly believe Fulcrum Therapeutics is more favorable than Biogen.

Risk & Volatility

Fulcrum Therapeutics has a beta of 2.59, suggesting that its share price is 159% more volatile than the S&P 500. Comparatively, Biogen has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500.

Earnings & Valuation

This table compares Fulcrum Therapeutics and Biogen”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fulcrum Therapeutics	$80.00 million	3.62	-$74.88 million	($1.21)	-3.14
Biogen	$9.89 billion	3.24	$1.29 billion	$5.65	38.43

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

Summary

Biogen beats Fulcrum Therapeutics on 10 of the 15 factors compared between the two stocks.

About Fulcrum Therapeutics

Fulcrum Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing products for improving the lives of patients with genetically defined diseases in the areas of high unmet medical need in the United States. Its product candidates are losmapimod, a small molecule for the treatment of facioscapulohumeral muscular dystrophy is under phase III clinical trial; and pociredir, a fetal hemoglobin inducer for the treatment of sickle cell disease and beta-thalassemia is under phase I clinical trial. The company is also discovering drug targets for the treatments of rare neuromuscular, muscular, central nervous system, and hematologic disorders, as well as cardiomyopathies and pulmonary diseases. Fulcrum Therapeutics, Inc. has collaboration and license agreement with Acceleron Pharma Inc. to identify biological targets to modulate specific pathways associated with a targeted indication within the pulmonary disease space; and MyoKardia, Inc. to discover and develop therapies for the treatment of genetic cardiomyopathies. Fulcrum Therapeutics, Inc. was Incorporated in 2015 and is headquartered in Cambridge, Massachusetts.

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.