Analyzing Homology Medicines (FIXX) & Dermira (NASDAQ:DERM)

Homology Medicines (NASDAQ:FIXX) and Dermira (NASDAQ:DERM) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Valuation and Earnings

This table compares Homology Medicines and Dermira’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Homology Medicines $3.68 million 265.48 -$57.22 million ($2.00) -11.20
Dermira $42.34 million 13.31 -$221.54 million ($5.24) -2.00

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

Risk & Volatility

Homology Medicines has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500. Comparatively, Dermira has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Profitability

This table compares Homology Medicines and Dermira’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Homology Medicines -2,253.08% -34.90% -27.37%
Dermira -510.47% -391.86% -53.34%

Analyst Ratings

This is a breakdown of current ratings for Homology Medicines and Dermira, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Homology Medicines 0 1 3 0 2.75
Dermira 0 1 8 0 2.89

Homology Medicines currently has a consensus price target of $30.13, indicating a potential upside of 34.49%. Dermira has a consensus price target of $19.09, indicating a potential upside of 81.80%. Given Dermira’s stronger consensus rating and higher probable upside, analysts clearly believe Dermira is more favorable than Homology Medicines.

Institutional & Insider Ownership

52.4% of Homology Medicines shares are owned by institutional investors. Comparatively, 68.7% of Dermira shares are owned by institutional investors. 33.4% of Homology Medicines shares are owned by insiders. Comparatively, 14.8% of Dermira 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.

Summary

Dermira beats Homology Medicines on 8 of the 14 factors compared between the two stocks.

Homology Medicines Company Profile

Homology Medicines, Inc., a genetic medicines company, focuses on translating proprietary gene editing and gene therapy technologies into novel treatments for patients with rare diseases. Its proprietary platform is designed to utilize its human hematopoietic stem cell derived adeno-associated virus vectors (AAVHSCs) to deliver genetic medicines in vivo either through a gene therapy or nuclease-free gene editing modality across a range of genetic disorders. The company's various set of AAVHSCs allows company to target, through a single injection, a range of disease-relevant tissues, including the liver, central nervous system, bone marrow, lung, muscle, and eye in gene editing and gene therapy modalities. Its lead product candidate is HMI-102, a gene therapy for the treatment of phenylketonuria (PKU) in adults. The company also develops HMI-103 for the treatment of PKU in pediatric patients; and HMI-202 to treat metachromatic leukodystrophy. Homology Medicines, Inc. was founded in 2015 and is based in Bedford, Massachusetts.

Dermira Company Profile

Dermira, Inc., a biopharmaceutical company, develops and commercializes therapies for patients with dermatologic diseases in the United States. The company offers QBREXZA, a topical once-daily anticholinergic cloth for the treatment of primary axillary hyperhidrosis in adult and pediatric patients nine years of age and older. It also develops lebrikizumab, a novel injectable humanized monoclonal antibody targeting interleukin 13 that is in Phase IIb clinical trial for the treatment of moderate-to-severe atopic dermatitis; and early-stage research and development programs in other areas of dermatology. Dermira, Inc. has a right of first negotiation agreement with Maruho Co., Ltd. to develop and commercialize glycopyrronium tosylate for the treatment of hyperhidrosis in Japan; an agreement with F. Hoffmann-La Roche Ltd and Genentech, Inc. to develop and commercialize lebrikizumab; and a development and commercialization agreement with UCB Pharma S.A. to develop Cimzia for the treatment of psoriasis. The company was formerly known as Skintelligence, Inc. and changed its name to Dermira, Inc. in September 2011. Dermira, Inc. was founded in 2010 and is headquartered in Menlo Park, California.

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