Critical Analysis: Upstream Bio (NASDAQ:UPB) & Northwest Biotherapeutics (OTCMKTS:NWBO)

Northwest Biotherapeutics (OTCMKTS:NWBO) and Upstream Bio (NASDAQ:UPB) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Profitability

This table compares Northwest Biotherapeutics and Upstream Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northwest Biotherapeutics	-1,736.35%	N/A	-56.34%
Upstream Bio	-4,955.67%	-48.40%	-46.57%

Valuation and Earnings

This table compares Northwest Biotherapeutics and Upstream Bio”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northwest Biotherapeutics	$1.38 million	222.47	-$60.16 million	($18.23)	-0.01
Upstream Bio	$3.16 million	116.38	-$143.44 million	($2.90)	-2.31

Northwest Biotherapeutics has higher earnings, but lower revenue than Upstream Bio. Upstream Bio is trading at a lower price-to-earnings ratio than Northwest Biotherapeutics, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Northwest Biotherapeutics has a beta of -0.6, indicating that its share price is 160% less volatile than the S&P 500. Comparatively, Upstream Bio has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Northwest Biotherapeutics and Upstream Bio, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northwest Biotherapeutics	0	0	0	0	0.00
Upstream Bio	1	2	4	0	2.43

Upstream Bio has a consensus target price of $29.67, indicating a potential upside of 342.13%. Given Upstream Bio’s stronger consensus rating and higher possible upside, analysts plainly believe Upstream Bio is more favorable than Northwest Biotherapeutics.

Institutional & Insider Ownership

0.0% of Northwest Biotherapeutics shares are held by institutional investors. 2.4% of Northwest Biotherapeutics shares are held by insiders. Comparatively, 16.5% of Upstream Bio shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Upstream Bio beats Northwest Biotherapeutics on 8 of the 14 factors compared between the two stocks.

About Northwest Biotherapeutics

Northwest Biotherapeutics, Inc., a biotechnology company, develops personalized immune therapies for cancer in the United States and internationally. The company develops its products based on DCVax, a platform technology that uses activated dendritic cells to mobilize a patient’s own immune system to attack cancer. Its lead product, DCVax-L, which has completed Phase III clinical trials to treat Glioblastoma multiforme brain cancer. The company also develops DCVax-Direct, which is in Phase I/II clinical trials to treat inoperable solid tumors. The company was founded in 1996 and is headquartered in Bethesda, Maryland.

About Upstream Bio

Upstream Bio, Inc., a clinical-stage biotechnology company, develops treatments for inflammatory diseases that focuses on severe respiratory disorders. It develops verekitug, a monoclonal antibody that targets and inhibits the thymic stromal lymphopoietin receptor. The company also develops therapies to treat severe asthma, chronic rhinosinusitis with nasal polyps, and chronic obstructive pulmonary disease. Upstream Bio, Inc. was incorporated in 2021 and is based in Waltham, Massachusetts.