Legend Biotech (NASDAQ:LEGN – Get Free Report) and Connect Biopharma (NASDAQ:CNTB – Get Free Report) 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.
Profitability
This table compares Legend Biotech and Connect Biopharma’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Legend Biotech | -7.21% | -8.71% | -5.40% |
| Connect Biopharma | N/A | -165.41% | -121.58% |
Earnings and Valuation
This table compares Legend Biotech and Connect Biopharma”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Legend Biotech | $1.27 billion | 2.89 | -$296.80 million | ($0.25) | -75.78 |
| Connect Biopharma | $2.95 million | 20.02 | -$55.48 million | ($1.19) | -0.79 |
Connect Biopharma has lower revenue, but higher earnings than Legend Biotech. Legend Biotech is trading at a lower price-to-earnings ratio than Connect Biopharma, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Legend Biotech and Connect Biopharma, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Legend Biotech | 1 | 5 | 9 | 0 | 2.53 |
| Connect Biopharma | 1 | 0 | 7 | 0 | 2.75 |
Legend Biotech presently has a consensus target price of $55.79, suggesting a potential upside of 194.46%. Connect Biopharma has a consensus target price of $6.14, suggesting a potential upside of 554.19%. Given Connect Biopharma’s stronger consensus rating and higher probable upside, analysts plainly believe Connect Biopharma is more favorable than Legend Biotech.
Institutional and Insider Ownership
70.9% of Legend Biotech shares are held by institutional investors. Comparatively, 58.7% of Connect Biopharma shares are held by institutional investors. 0.0% of Legend Biotech shares are held by insiders. Comparatively, 22.6% of Connect Biopharma 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.
Risk & Volatility
Legend Biotech has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, Connect Biopharma has a beta of -0.16, suggesting that its share price is 116% less volatile than the S&P 500.
About Legend Biotech
Legend Biotech Corporation, a clinical-stage biopharmaceutical company, through its subsidiaries, engages in the discovery, development, manufacturing, and commercialization of novel cell therapies for oncology and other indications in the United States, China, and internationally. Its lead product candidate, LCAR- B38M, is a chimeric antigen receptor for the treatment of multiple myeloma (MM). The company also has a portfolio of earlier-stage autologous CAR-T product candidates targeting various cancers, including Non-Hodgkins Lymphoma, acute lymphoblastic leukemia, gastric cancer, esophageal cancer, pancreatic cancer, colorectal cancer, hepatocellular carcinoma, small cell lung cancer, and non-small cell lung cancer. It has collaboration and license agreement with Janssen Biotech, Inc. for the development and commercialization of ciltacabtagene autoleucel. The company was founded in 2014 and is based in Somerset, New Jersey. Legend Biotech Corporation is a subsidiary of Genscript Biotech Corporation.
About Connect Biopharma
Connect Biopharma Holdings Limited, a clinical-stage biopharmaceutical company, engages in the development of therapies for the treatment of T cell-driven inflammatory diseases. The company is building a pipeline of small molecules and antibodies using functional T cell assays to screen and discover potent product candidates against validated immune targets. Its lead product candidate is rademikibart (formerly CBP-201), an antibody designed to target interleukin-4 receptor alpha, which is a validated target for the treatment of inflammatory diseases such as atopic dermatitis and asthma, currently under Phase 3 studies; and icanbelimod (formerly CBP-307), an oral small molecule Sphingosine 1-Phosphate Receptor 1 modulator, currently under Phase 2 clinical for the treatment of ulcerative colitis and Crohn's disease. The company was founded in 2012 and is based in San Diego, California.
Receive News & Ratings for Legend Biotech Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Legend Biotech and related companies with MarketBeat.com's FREE daily email newsletter.
