Analyzing Passage Bio (NASDAQ:PASG) & Abpro (NASDAQ:ABP)

Abpro (NASDAQ:ABP) and Passage Bio (NASDAQ:PASG) are both small-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Insider & Institutional Ownership

23.3% of Abpro shares are owned by institutional investors. Comparatively, 53.5% of Passage Bio shares are owned by institutional investors. 13.7% of Abpro shares are owned by company insiders. Comparatively, 4.9% of Passage Bio shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Abpro and Passage Bio”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Abpro	N/A	N/A	-$7.23 million	($4.23)	-0.12
Passage Bio	N/A	N/A	-$45.52 million	($11.32)	-0.40

Passage Bio is trading at a lower price-to-earnings ratio than Abpro, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Abpro and Passage Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Abpro	N/A	N/A	-344.76%
Passage Bio	N/A	-218.59%	-72.93%

Analyst Recommendations

This is a breakdown of recent ratings for Abpro and Passage Bio, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Abpro	1	1	0	0	1.50
Passage Bio	1	6	2	0	2.11

Passage Bio has a consensus target price of $13.25, indicating a potential upside of 193.79%. Given Passage Bio’s stronger consensus rating and higher possible upside, analysts clearly believe Passage Bio is more favorable than Abpro.

About Abpro

Abpro Holdings Inc. is a biotechnology company. The company’s mission is to improve the lives of mankind facing severe and life-threatening diseases with next-generation antibody therapies. Abpro Holdings Inc., formerly known as Atlantic Coastal Acquisition Corp. II, is based in WOBURN, Mass.

About Passage Bio

Passage Bio, Inc., a genetic medicines company, develops gene therapies for central nervous system diseases. It develops PBGM01, a functional GLB1 gene encoding ß-galactosidase for infantile GM1; PBFT02, a functional granulin (GRN) and gene encoding progranulin (PGRN) for the treatment of FTD caused by progranulin deficiency; and PBKR03, a functional GALC gene encoding the hydrolytic enzyme galactosylceramidase for infantile Krabbe disease. The company develops PBML04 for the treatment of metachromatic leukodystrophy; PBAL05 for the treatment of amyotrophic lateral sclerosis; and other program for huntington's disease. It has a strategic research collaboration with the Trustees of the University of Pennsylvania's Gene Therapy Program; and collaboration agreement, and a development services and clinical supply agreement with Catalent Maryland, Inc. Passage Bio, Inc. was incorporated in 2017 and is headquartered in Philadelphia, Pennsylvania.