Eliem Therapeutics (NASDAQ:ELYM) and Insmed (NASDAQ:INSM) Head-To-Head Comparison

Eliem Therapeutics (NASDAQ:ELYM) and Insmed (NASDAQ:INSM) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Risk and Volatility

Eliem Therapeutics has a beta of -0.39, suggesting that its stock price is 139% less volatile than the S&P 500. Comparatively, Insmed has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Insider & Institutional Ownership

69.8% of Eliem Therapeutics shares are owned by institutional investors. 4.7% of Eliem Therapeutics shares are owned by company insiders. Comparatively, 3.0% of Insmed shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Eliem Therapeutics	N/A	-47.03%	-45.97%
Insmed	-251.24%	-4,773.73%	-54.58%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Eliem Therapeutics and Insmed, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eliem Therapeutics	0	0	0	0	0.00
Insmed	0	0	16	0	3.00

Insmed has a consensus target price of $94.00, suggesting a potential upside of 34.55%. Given Insmed’s stronger consensus rating and higher possible upside, analysts clearly believe Insmed is more favorable than Eliem Therapeutics.

Earnings & Valuation

This table compares Eliem Therapeutics and Insmed”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eliem Therapeutics	N/A	N/A	-$35.12 million	($0.53)	-2.40
Insmed	$363.71 million	34.92	-$749.57 million	($5.59)	-12.50

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

Summary

Eliem Therapeutics beats Insmed on 8 of the 13 factors compared between the two stocks.

About Eliem Therapeutics

Eliem Therapeutics, Inc., a biotechnology company, focuses on developing therapies for neuronal excitability disorders to address unmet needs in psychiatry, epilepsy, chronic pain, and other disorders of the peripheral and central nervous systems. The company was incorporated in 2018 and is headquartered in Wilmington, Delaware.

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.