Connect Biopharma (NASDAQ:CNTB – Get Free Report) and NewAmsterdam Pharma (NASDAQ:NAMS – Get Free Report) are both healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.
Risk & Volatility
Connect Biopharma has a beta of -0.23, meaning that its share price is 123% less volatile than the S&P 500. Comparatively, NewAmsterdam Pharma has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Connect Biopharma and NewAmsterdam Pharma, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Connect Biopharma | 1 | 0 | 7 | 0 | 2.75 |
| NewAmsterdam Pharma | 1 | 1 | 10 | 1 | 2.85 |
Insider & Institutional Ownership
58.7% of Connect Biopharma shares are held by institutional investors. Comparatively, 89.9% of NewAmsterdam Pharma shares are held by institutional investors. 22.6% of Connect Biopharma shares are held by company insiders. Comparatively, 12.7% of NewAmsterdam Pharma shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Connect Biopharma and NewAmsterdam Pharma”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Connect Biopharma | $2.95 million | 43.50 | -$55.48 million | ($1.19) | -1.71 |
| NewAmsterdam Pharma | $7.12 million | 382.73 | -$203.82 million | ($2.16) | -10.56 |
Connect Biopharma has higher earnings, but lower revenue than NewAmsterdam Pharma. NewAmsterdam Pharma is trading at a lower price-to-earnings ratio than Connect Biopharma, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Connect Biopharma and NewAmsterdam Pharma’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Connect Biopharma | N/A | -165.41% | -121.58% |
| NewAmsterdam Pharma | -3,644.21% | -34.81% | -31.50% |
Summary
NewAmsterdam Pharma beats Connect Biopharma on 9 of the 15 factors compared between the two stocks.
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.
About NewAmsterdam Pharma
NewAmsterdam Pharma Company N.V., a late-stage biopharmaceutical company, develops therapies to enhance patient care in populations with metabolic disease. It is developing obicetrapib, an oral low-dose cholesteryl ester transfer protein (CETP) inhibitor, that is in various clinical trials as a monotherapy and a combination therapy with ezetimibe for lowering LDL-C for cardiovascular diseases. The company also develops Obicetrapib which is in Phase 2a clinical trial for Alzheimer’s disease. NewAmsterdam Pharma Company N.V. is headquartered in Naarden, the Netherlands.
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