Comparing Vaxcyte (NASDAQ:PCVX) & Neumora Therapeutics (NASDAQ:NMRA)

Vaxcyte (NASDAQ:PCVX) and Neumora Therapeutics (NASDAQ:NMRA) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.

Volatility & Risk

Vaxcyte has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Neumora Therapeutics has a beta of 2.73, suggesting that its share price is 173% more volatile than the S&P 500.

Valuation and Earnings

This table compares Vaxcyte and Neumora Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vaxcyte	N/A	N/A	-$402.27 million	($3.99)	-9.27
Neumora Therapeutics	N/A	N/A	-$235.93 million	($1.61)	-0.63

Vaxcyte is trading at a lower price-to-earnings ratio than Neumora Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Vaxcyte and Neumora Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vaxcyte	N/A	-23.53%	-22.20%
Neumora Therapeutics	N/A	-73.63%	-68.97%

Analyst Recommendations

This is a summary of recent ratings for Vaxcyte and Neumora Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vaxcyte	0	0	9	1	3.10
Neumora Therapeutics	1	5	3	0	2.22

Vaxcyte currently has a consensus target price of $136.50, suggesting a potential upside of 269.02%. Neumora Therapeutics has a consensus target price of $9.29, suggesting a potential upside of 810.36%. Given Neumora Therapeutics’ higher probable upside, analysts clearly believe Neumora Therapeutics is more favorable than Vaxcyte.

Institutional and Insider Ownership

96.8% of Vaxcyte shares are owned by institutional investors. Comparatively, 47.7% of Neumora Therapeutics shares are owned by institutional investors. 3.1% of Vaxcyte shares are owned by insiders. Comparatively, 26.8% of Neumora Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

About Vaxcyte

Vaxcyte, Inc., a clinical-stage biotechnology vaccine company, develops novel protein vaccines to prevent or treat bacterial infectious diseases. Its lead vaccine candidate is VAX-24, a 24-valent investigational pneumococcal conjugate vaccine for the prevention of invasive pneumococcal disease. The company also develops VAX-31 to protect against emerging strains and to help address antibiotic resistance; VAX-A1, a novel conjugate vaccine candidate to prevent disease caused by Group A Streptococcus; VAX-PG, a novel protein vaccine candidate targeting keystone pathogen responsible for periodontitis; and VAX-GI to prevent Shigella, a bacterial illness. The company was formerly known as SutroVax, Inc. and changed its name to Vaxcyte, Inc. in May 2020. Vaxcyte, Inc. was incorporated in 2013 and is headquartered in San Carlos, California.

About Neumora Therapeutics

Neumora Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in developing therapeutic treatments for brain diseases, neuropsychiatric disorders, and neurodegenerative diseases. The company develops navacaprant (NMRA-140), a novel once-daily oral kappa opioid receptor antagonist, which is in phase 3 clinical trials for the treatment of major depressive disorder. It also develops NMRA-511 that is in phase 1 clinical trials in patients with agitation associated with dementia due to Alzheimer’s disease; and NMRA-266, which is in the phase 1 clinical trial for the treatment of schizophrenia and other neuropsychiatric disorders. In addition, its preclinical phase product includes NMRA-NMDA for the treatment of schizophrenia; NMRA-CK1d, a CK1d inhibitor program for the treatment of amyotrophic lateral sclerosis; NMRA-NLRP3 for the treatment of certain neurodegenerative conditions; and NMRA-GCase for the treatment of Parkinson’s disease. The company was formerly known as RBNC Therapeutics, Inc. and changed its name to Neumora Therapeutics, Inc. in October 2021. Neumora Therapeutics, Inc. was incorporated in 2019 and is headquartered in Watertown, Massachusetts.