Analyzing Rapid Micro Biosystems (NASDAQ:RPID) and Beta Bionics (NASDAQ:BBNX)

Beta Bionics (NASDAQ:BBNX) and Rapid Micro Biosystems (NASDAQ:RPID) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Profitability

This table compares Beta Bionics and Rapid Micro Biosystems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beta Bionics	-87.89%	-35.72%	-20.69%
Rapid Micro Biosystems	-145.11%	-73.90%	-51.56%

Earnings & Valuation

This table compares Beta Bionics and Rapid Micro Biosystems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beta Bionics	$65.12 million	19.49	-$54.76 million	($4.37)	-6.59
Rapid Micro Biosystems	$28.05 million	5.93	-$46.89 million	($1.01)	-3.72

Rapid Micro Biosystems has lower revenue, but higher earnings than Beta Bionics. Beta Bionics is trading at a lower price-to-earnings ratio than Rapid Micro Biosystems, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

52.6% of Rapid Micro Biosystems shares are held by institutional investors. 30.0% of Rapid Micro Biosystems shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Beta Bionics and Rapid Micro Biosystems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beta Bionics	1	3	8	1	2.69
Rapid Micro Biosystems	1	0	1	1	2.67

Beta Bionics currently has a consensus target price of $28.22, suggesting a potential downside of 2.07%. Rapid Micro Biosystems has a consensus target price of $8.00, suggesting a potential upside of 112.77%. Given Rapid Micro Biosystems’ higher probable upside, analysts clearly believe Rapid Micro Biosystems is more favorable than Beta Bionics.

Summary

Beta Bionics beats Rapid Micro Biosystems on 7 of the 13 factors compared between the two stocks.

About Beta Bionics

Beta Bionics, Inc. is a commercial-stage medical device company. It engages in the design, development, and commercialization of solutions for insulin-requiring people with diabetes. The company was founded by Edward R. Damiano on October 21, 2015 and is headquartered in Irvine, CA.

About Rapid Micro Biosystems

Rapid Micro Biosystems, Inc., a life sciences technology company, provides products for the detection of microbial contamination in the manufacture of pharmaceutical, medical devices, and personal care products in the United States, Germany, Switzerland, Japan, and internationally. The company offers Growth Direct platform, which includes Growth Direct system, proprietary consumables, lab information management system connection software, and customer support and validation services. Its platform automates and modernizes the manual microbial quality control (MQC) testing workflows for therapeutic modalities, such as biologics, vaccines, cell and gene therapies, and sterile injectables. The company also provides onsite technical training services. Its solutions are used in environmental monitoring, water, bioburden, and sterility release testing applications. In addition, the company offers RMBNucleus software for the Growth Direct system; RMBNucleus Mold Alarm signals at the first sign of mold detection; RMBNucleus Central Manager portal streamlines coordination of multiple instruments; and Growth Direct LIMS connection software. Rapid Micro Biosystems, Inc. was formerly known as Genomic Profiling Systems, Inc. and changed its name to Rapid Micro Biosystems, Inc. in January 2007. The company was incorporated in 2006 and is headquartered in Lowell, Massachusetts.