Contrasting BeiGene (NASDAQ:BGNE) and Bright Minds Biosciences (NASDAQ:DRUG)

Bright Minds Biosciences (NASDAQ:DRUG) and BeiGene (NASDAQ:BGNE) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Valuation and Earnings

This table compares Bright Minds Biosciences and BeiGene’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bright Minds Biosciences	N/A	N/A	-$5.47 million	($1.01)	-1.19
BeiGene	$2.46 billion	6.41	-$881.71 million	($7.57)	-21.47

Bright Minds Biosciences has higher earnings, but lower revenue than BeiGene. BeiGene is trading at a lower price-to-earnings ratio than Bright Minds Biosciences, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Bright Minds Biosciences and BeiGene, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bright Minds Biosciences	0	0	0	0	N/A
BeiGene	0	2	8	0	2.80

BeiGene has a consensus target price of $250.75, suggesting a potential upside of 54.27%. Given BeiGene’s higher possible upside, analysts plainly believe BeiGene is more favorable than Bright Minds Biosciences.

Institutional & Insider Ownership

40.5% of Bright Minds Biosciences shares are held by institutional investors. Comparatively, 48.6% of BeiGene shares are held by institutional investors. 42.7% of Bright Minds Biosciences shares are held by insiders. Comparatively, 7.4% of BeiGene shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Bright Minds Biosciences has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500. Comparatively, BeiGene has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Profitability

This table compares Bright Minds Biosciences and BeiGene’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bright Minds Biosciences	N/A	-80.64%	-73.04%
BeiGene	-28.39%	-21.70%	-13.81%

Summary

BeiGene beats Bright Minds Biosciences on 6 of the 11 factors compared between the two stocks.

About Bright Minds Biosciences

Bright Minds Biosciences Inc., a biotechnology company, develops therapeutics to improve the lives of patients with severe and life-altering diseases in the United States. Its portfolio of selective 5-HT receptor agonists includes 5-HT2C, 5-HT2A, and 5-HT2C/A for the treatment of epilepsy, pain, and neuropsychiatry; and BMB-101 which completes phase 1 trial for undisclosed seizure disorder. The company also developing BMB-202 for the treatment of depression, anxiety, and PTSD; and BMB-201 for the treatment of anxiety. It has collaboration with National Institutes of Health for the treatment of epilepsy; University of Texas Medical Branch to treat impulse control disorders, such as binge eating; and Medical College of Wisconsin. Bright Minds Biosciences Inc. was founded in 2017 and is headquartered in New York, New York.

About BeiGene

BeiGene, Ltd., through its subsidiaries, engages in the development and commercialization of oncology medicines worldwide. Its products include BRUKINSA to treat various blood cancers; TEVIMBRA to treat various solid tumor and blood cancers; PARTRUVIX for the treatment of various solid tumor malignancies; XGEVA to treat bone metastases from solid tumors and multiple myeloma, as well as giant cell tumor of bone; BLINCYTO to treat acute lymphoblastic leukemia; KYPROLIS to treat R/R multiple myeloma; REVLIMID to treat multiple myeloma; VIDAZA to treat myelodysplastic syndromes, chronic myelomonocyte leukemia, and acute myeloid leukemia; SYLVANT to treat idiopathic multicentric castleman disease; QARZIBA to treat neuroblastoma; POBEVCY to treat metastatic colorectal cancer, liver cancer, and non-small cell lung cancer (NSCLC); BAITUOWEI, to treat breast and prostate cancers; TAFINLAR and MEKINIST to treat NSCLC and melanoma; VOTRIENT for advance renal cell carcinoma; AFINITOR for advance renal cell carcinoma, NET, SEGA, & breast cancers; and ZYKADIA to treat ALK + NSCLC. The company is also developing inhibitors comprising Sonrotoclax (BGB-11417), BGB-10188, BGB-21447, Ociperlimab (BGB-A1217), Surzebiclimab (BGB-A425), BGB-15025, BGB-26808, Lifirafenib (BGB-283), BGB-3245, BGB-30813, and BGB-43395; antibodies, including Zanidatamab, BGB-A445, and BGB-A3055, as well as BGB-16673, a BTK-targeted CDAC, and BGB-24714, a SMAC mimetic. It has collaborations with Shoreline Biosciences, Inc., Amgen Inc., Novartis AG, Bristol Myers Squibb company, Shandong Luye Pharmaceutical Co., Ltd., Nanjing Leads Biolabs, Inc., EUSA Pharma, Assembly Biosciences, Inc., Bio-Thera Solutions, Ltd., and Nanjing Leads Biolabs Co., Ltd. The company was incorporated in 2010 and is based in Grand Cayman, the Cayman Islands.