REGENXBIO (NASDAQ:RGNX – Get Free Report) and Vir Biotechnology (NASDAQ:VIR – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
Volatility and Risk
REGENXBIO has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Vir Biotechnology has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500.
Valuation and Earnings
This table compares REGENXBIO and Vir Biotechnology”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| REGENXBIO | $170.44 million | 2.78 | -$193.88 million | ($3.79) | -1.90 |
| Vir Biotechnology | $68.56 million | 25.09 | -$437.99 million | ($1.86) | -5.47 |
REGENXBIO has higher revenue and earnings than Vir Biotechnology. Vir Biotechnology is trading at a lower price-to-earnings ratio than REGENXBIO, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
88.1% of REGENXBIO shares are held by institutional investors. Comparatively, 65.3% of Vir Biotechnology shares are held by institutional investors. 14.2% of REGENXBIO shares are held by insiders. Comparatively, 2.9% of Vir Biotechnology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for REGENXBIO and Vir Biotechnology, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| REGENXBIO | 1 | 3 | 9 | 1 | 2.71 |
| Vir Biotechnology | 2 | 0 | 6 | 1 | 2.67 |
REGENXBIO presently has a consensus price target of $23.17, suggesting a potential upside of 222.39%. Vir Biotechnology has a consensus price target of $21.86, suggesting a potential upside of 115.02%. Given REGENXBIO’s stronger consensus rating and higher probable upside, equities analysts plainly believe REGENXBIO is more favorable than Vir Biotechnology.
Profitability
This table compares REGENXBIO and Vir Biotechnology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| REGENXBIO | -112.58% | -220.07% | -46.04% |
| Vir Biotechnology | N/A | -29.99% | -23.62% |
Summary
REGENXBIO beats Vir Biotechnology on 8 of the 14 factors compared between the two stocks.
About REGENXBIO
REGENXBIO Inc., a clinical-stage biotechnology company, provides gene therapies that deliver functional genes to cells with genetic defects in the United States. Its gene therapy product candidates are based on NAV Technology Platform, a proprietary adeno-associated virus gene delivery platform. The company’s products in pipeline includes ABBV-RGX-314 for the treatment of wet age-related macular degeneration, diabetic retinopathy, and other chronic retinal diseases; and RGX-202, which is in Phase I/II clinical trial for the treatment of Duchenne muscular dystrophy. It also develops RGX-121 for the treatment of mucopolysaccharidosis type II that is in Phase III clinical trial; RGX-111 for treating mucopolysaccharidosis type I; RGX-181 for the treatment of late infantile neuronal ceroid lipofuscinosis type II; and RGX-381 to treat the ocular manifestations of CLN2 disease. In addition, the company licenses its NAV Technology Platform to other biotechnology and pharmaceutical companies. Further, it has a collaboration and license agreement with AbbVie Global Enterprises Ltd. to develop ABBV-RGX-314 outside the United States. REGENXBIO Inc. was incorporated in 2008 and is headquartered in Rockville, Maryland.
About Vir Biotechnology
Vir Biotechnology, Inc., an immunology company, develops therapeutic products to treat and prevent serious infectious diseases. Its clinical development pipeline consists of product candidates targeting hepatitis delta virus (HDV), hepatitis B virus (HBV), and human immunodeficiency virus (HIV). The company’s preclinical candidates include those targeting influenza A and B, coronavirus disease 2019, respiratory syncytial virus (RSV) and human metapneumovirus (MPV), and human papillomavirus (HPV). The company has grant agreements with Bill & Melinda Gates Foundation and National Institutes of Health; an option and license agreement with Brii Biosciences Limited; a collaboration and license agreement with Alnylam Pharmaceuticals, Inc.; license agreements with MedImmune, LLC; collaboration with WuXi Biologics (Hong Kong) Limited and Glaxo Wellcome UK Ltd.; and a collaborative research agreement with GlaxoSmithKline Biologicals S.A, as well as license agreement with Sanofi for three clinical-stage masked T-cell engagers (TCEs) and exclusive use of the protease-cleavable masking platform for oncology and infectious diseases. It also has a manufacturing agreement with Samsung Biologics Co.,Ltd. The company was incorporated in 2016 and is headquartered in San Francisco, California.
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