Analyzing Insmed (NASDAQ:INSM) & Gemini Therapeutics (NASDAQ:GMTX)

Gemini Therapeutics (NASDAQ:GMTX) and Insmed (NASDAQ:INSM) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Earnings and Valuation

This table compares Gemini Therapeutics and Insmed’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gemini Therapeutics	N/A	N/A	-$71.87 million	($1.00)	-42.11
Insmed	$315.49 million	34.23	-$749.57 million	($5.23)	-13.90

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

Insider and Institutional Ownership

75.4% of Gemini Therapeutics shares are owned by institutional investors. 12.9% of Gemini Therapeutics shares are owned by insiders. Comparatively, 4.6% of Insmed shares are owned 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.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Gemini Therapeutics and Insmed, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gemini Therapeutics	0	0	0	0	N/A
Insmed	0	0	16	0	3.00

Insmed has a consensus target price of $74.50, indicating a potential upside of 2.50%. Given Insmed’s higher possible upside, analysts plainly believe Insmed is more favorable than Gemini Therapeutics.

Risk and Volatility

Gemini Therapeutics has a beta of -0.12, suggesting that its stock price is 112% less volatile than the S&P 500. Comparatively, Insmed has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.

Profitability

This table compares Gemini Therapeutics and Insmed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gemini Therapeutics	N/A	-38.78%	-35.88%
Insmed	-236.74%	N/A	-56.78%

About Gemini Therapeutics

Gemini Therapeutics, Inc., a clinical stage precision medicine company, engages in developing various therapeutic compounds for treating genetically defined age-related macular degeneration (AMD). Its lead candidate is GEM103, a recombinant form of the human complement factor H protein to treat dry AMD patients. The company also develops GEM307 for treatment of systemic diseases. Gemini Therapeutics, Inc. was founded in 2015 and is headquartered in Cambridge, Massachusetts.

About Insmed

Insmed Incorporated is a global biopharmaceutical company on a mission to transform the lives of patients with serious and rare diseases. Insmed’s first commercial product is ARIKAYCE® (amikacin liposome inhalation suspension), which is approved in the United States for the treatment of Mycobacterium avium complex (MAC) lung disease as part of a combination antibacterial drug regimen for adult patients with limited or no alternative treatment options. MAC lung disease is a rare and often chronic infection that can cause irreversible lung damage and can be fatal. Insmed’s earlier-stage clinical pipeline includes INS1007, a novel oral reversible inhibitor of dipeptidyl peptidase 1 with therapeutic potential in non-cystic fibrosis bronchiectasis and other inflammatory diseases, and INS1009, an inhaled formulation of a treprostinil prodrug that may offer a differentiated product profile for rare pulmonary disorders, including pulmonary arterial hypertension.