Critical Comparison: BridgeBio Pharma (NASDAQ:BBIO) and MannKind (NASDAQ:MNKD)

BridgeBio Pharma (NASDAQ:BBIO) and MannKind (NASDAQ:MNKD) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Profitability

This table compares BridgeBio Pharma and MannKind’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BridgeBio Pharma	-97.03%	N/A	-61.19%
MannKind	-11.08%	N/A	-6.31%

Institutional and Insider Ownership

99.8% of BridgeBio Pharma shares are held by institutional investors. Comparatively, 49.5% of MannKind shares are held by institutional investors. 14.2% of BridgeBio Pharma shares are held by company insiders. Comparatively, 2.6% of MannKind shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

BridgeBio Pharma has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, MannKind has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for BridgeBio Pharma and MannKind, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BridgeBio Pharma	1	2	20	0	2.83
MannKind	2	1	7	0	2.50

BridgeBio Pharma currently has a consensus target price of $102.61, suggesting a potential upside of 53.36%. MannKind has a consensus target price of $8.34, suggesting a potential upside of 111.23%. Given MannKind’s higher possible upside, analysts clearly believe MannKind is more favorable than BridgeBio Pharma.

Earnings and Valuation

This table compares BridgeBio Pharma and MannKind”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BridgeBio Pharma	$502.08 million	26.05	-$724.93 million	($3.57)	-18.74
MannKind	$348.97 million	3.64	$5.86 million	($0.13)	-30.38

MannKind has lower revenue, but higher earnings than BridgeBio Pharma. MannKind is trading at a lower price-to-earnings ratio than BridgeBio Pharma, indicating that it is currently the more affordable of the two stocks.

Summary

BridgeBio Pharma beats MannKind on 7 of the 13 factors compared between the two stocks.

About BridgeBio Pharma

BridgeBio Pharma, Inc., a commercial-stage biopharmaceutical company, discovers, creates, tests, and delivers transformative medicines to treat patients who suffer from genetic diseases and cancers. Its products in development programs include AG10, a next-generation oral small molecule near-complete TTR stabilizer that is in Phase 3 clinical trial for the treatment of TTR amyloidosis, or transthyretin amyloid cardiomyopathy (ATTR-CM); low-dose infigratinib, an oral FGFR1-3 selective tyrosine kinase inhibitor, which is in Phase 3 double-blinded, placebo-controlled pivotal study for the treatment option for children with achondroplasia; and BBP-631, an AAV5 gene transfer product candidate that is in Phase 1/2 clinical trial for the treatment of congenital adrenal hyperplasia, or CAH, driven by 21-hydroxylase deficiency, or 21OHD. The company also develops Encaleret, a small molecule antagonist of the calcium sensing receptor, or CaSR, which is in phase 3 clinical trial for treating autosomal dominant hypocalcemia type 1, or ADH1; and BBP-418, a glycosylation substrate pro-drug that is in Phase 3 clinical trial for treating limb-girdle muscular dystrophy type 2I/R9 (LGMD2I/R9). In addition, it engages in developing products for mendelian, oncology, and gene therapy diseases. BridgeBio Pharma, Inc. has license and collaboration agreements with the Leland Stanford Junior University; and Leidos Biomedical Research, Inc. The company was founded in 2015 and is headquartered in Palo Alto, California.

About MannKind

MannKind Corporation, a biopharmaceutical company, focuses on the development and commercialization of inhaled therapeutic products for endocrine and orphan lung diseases in the United States. It offers Afrezza, an inhaled insulin used to improve glycemic control in adults with diabetes, and the V-Go wearable insulin delivery device, which provides continuous subcutaneous infusion of insulin in adults. The company's product pipeline also includes Tyvaso DPI (Treprostinil), an inhalation powder for the treatment of pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease; MNKD-101, a nebulized formulation of clofazimine, for the treatment of severe chronic and recurrent pulmonary infections, including nontuberculous mycobacterial lung disease; MNKD-201, a dry-powder formulation of nintedanib, for the treatment of idiopathic pulmonary fibrosis (IPF). In addition, it has collaboration and license agreement with United Therapeutics Corporation for development, regulatory, and commercial activities of Tyvaso DPI; co-promotion agreement with Vertice Pharma to promote Thyquidity; and collaboration agreement with Thirona to evaluate the therapeutic for the treatment of pulmonary fibrosis. Further, the company has supply and distribution agreement with Biomm S.A. for the commercialization of Afrezza in Brazil; and license and distribution agreement with Cipla Ltd. for the marketing and distribution of Afrezza in India. MannKind Corporation was incorporated in 1991 and is headquartered in Danbury, Connecticut.