Contrasting Ascendis Pharma A/S (NASDAQ:ASND) & Adicet Bio (NASDAQ:ACET)

Ascendis Pharma A/S (NASDAQ:ASND) and Adicet Bio (NASDAQ:ACET) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Institutional and Insider Ownership

83.9% of Adicet Bio shares are owned by institutional investors. 40.0% of Ascendis Pharma A/S shares are owned by company insiders. Comparatively, 4.6% of Adicet Bio shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Ascendis Pharma A/S and Adicet Bio”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ascendis Pharma A/S	$646.55 million	20.27	-$409.12 million	($4.44)	-47.85
Adicet Bio	$24.99 million	3.96	-$117.12 million	($1.26)	-0.51

Adicet Bio has lower revenue, but higher earnings than Ascendis Pharma A/S. Ascendis Pharma A/S is trading at a lower price-to-earnings ratio than Adicet Bio, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Ascendis Pharma A/S has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, Adicet Bio has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500.

Profitability

This table compares Ascendis Pharma A/S and Adicet Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ascendis Pharma A/S	-54.94%	N/A	-24.31%
Adicet Bio	N/A	-77.90%	-64.35%

Analyst Recommendations

This is a breakdown of current ratings for Ascendis Pharma A/S and Adicet Bio, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ascendis Pharma A/S	1	0	14	2	3.00
Adicet Bio	1	2	3	1	2.57

Ascendis Pharma A/S presently has a consensus target price of $256.60, indicating a potential upside of 20.79%. Adicet Bio has a consensus target price of $7.33, indicating a potential upside of 1,035.19%. Given Adicet Bio’s higher probable upside, analysts plainly believe Adicet Bio is more favorable than Ascendis Pharma A/S.

Summary

Ascendis Pharma A/S beats Adicet Bio on 8 of the 15 factors compared between the two stocks.

About Ascendis Pharma A/S

Ascendis Pharma A/S, a biopharmaceutical company, focuses on developing therapies for unmet medical needs. It offers SKYTROFA for treating patients with growth hormone deficiency (GHD). The company is also developing a pipeline of three independent endocrinology rare disease product candidates in clinical development, as well as focuses on advancing oncology therapeutic candidates. The company was incorporated in 2006 and is headquartered in Hellerup, Denmark.

About Adicet Bio

Adicet Bio, Inc., a clinical stage biotechnology company, discovers and develops allogeneic gamma delta T cell therapies for autoimmune diseases and cancer. The company offers gamma delta T cells engineered with chimeric antigen receptors (CARs) to facilitate durable activity in patients. Its lead product candidate is ADI-001, an allogeneic gamma delta T cell therapy expressing a CAR targeting CD20, which is in Phase I clinical trial for the treatment of autoimmune diseases and relapsed or refractory aggressive B cell non-Hodgkin's lymphoma. The company is also developing ADI-270, an armored gamma delta CAR T cell product candidate targeting renal cell carcinoma for treating other CD70+ solid tumor and hematological malignancies indications. The company was founded in 2014 and is based in Boston, Massachusetts.