Financial Analysis: Connect Biopharma (CNTB) and Its Competitors

Connect Biopharma (NASDAQ:CNTB) is one of 617 public companies in the “MED – BIOMED/GENE” industry, but how does it contrast to its rivals? We will compare Connect Biopharma to similar companies based on the strength of its institutional ownership, profitability, analyst recommendations, valuation, earnings, dividends and risk.

Valuation and Earnings

This table compares Connect Biopharma and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Connect Biopharma	$762,000.00	-$15.63 million	-3.52
Connect Biopharma Competitors	$967.23 million	-$46.11 million	11.75

Connect Biopharma’s rivals have higher revenue, but lower earnings than Connect Biopharma. Connect Biopharma is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Connect Biopharma and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Connect Biopharma	N/A	N/A	N/A
Connect Biopharma Competitors	-1,425.99%	-589.63%	-28.81%

Risk & Volatility

Connect Biopharma has a beta of -0.14, suggesting that its share price is 114% less volatile than the S&P 500. Comparatively, Connect Biopharma’s rivals have a beta of 0.97, suggesting that their average share price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Connect Biopharma and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Connect Biopharma	1	0	2	1	2.75
Connect Biopharma Competitors	5681	12127	37548	1146	2.60

Connect Biopharma currently has a consensus price target of $8.50, suggesting a potential upside of 230.74%. As a group, “MED – BIOMED/GENE” companies have a potential upside of 56.22%. Given Connect Biopharma’s stronger consensus rating and higher possible upside, equities analysts clearly believe Connect Biopharma is more favorable than its rivals.

Insider & Institutional Ownership

58.7% of Connect Biopharma shares are held by institutional investors. Comparatively, 51.3% of shares of all “MED – BIOMED/GENE” companies are held by institutional investors. 22.6% of Connect Biopharma shares are held by insiders. Comparatively, 13.6% of shares of all “MED – BIOMED/GENE” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Connect Biopharma beats its rivals on 9 of the 13 factors compared.

About Connect Biopharma

Connect Biopharma Holdings Limited, a clinical-stage biopharmaceutical company, engages in the development of therapies for the treatment of T cell-driven inflammatory diseases. The company is building a pipeline of small molecules and antibodies using functional T cell assays to screen and discover potent product candidates against validated immune targets. Its lead product candidate is rademikibart (formerly CBP-201), an antibody designed to target interleukin-4 receptor alpha, which is a validated target for the treatment of inflammatory diseases such as atopic dermatitis and asthma, currently under Phase 3 studies; and icanbelimod (formerly CBP-307), an oral small molecule Sphingosine 1-Phosphate Receptor 1 modulator, currently under Phase 2 clinical for the treatment of ulcerative colitis and Crohn's disease. The company was founded in 2012 and is based in San Diego, California.