Head to Head Analysis: HUTCHMED (NASDAQ:HCM) & Neumora Therapeutics (NASDAQ:NMRA)

by · The Cerbat Gem

Neumora Therapeutics (NASDAQ:NMRAGet Free Report) and HUTCHMED (NASDAQ:HCMGet Free Report) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Neumora Therapeutics and HUTCHMED, as reported by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Neumora Therapeutics32502.20
HUTCHMED13102.00

Neumora Therapeutics presently has a consensus target price of $8.00, indicating a potential upside of 260.36%. HUTCHMED has a consensus target price of $20.88, indicating a potential upside of 46.80%. Given Neumora Therapeutics’ stronger consensus rating and higher possible upside, equities analysts plainly believe Neumora Therapeutics is more favorable than HUTCHMED.

Institutional and Insider Ownership

47.7% of Neumora Therapeutics shares are owned by institutional investors. Comparatively, 8.8% of HUTCHMED shares are owned by institutional investors. 26.8% of Neumora Therapeutics shares are owned by company insiders. Comparatively, 3.6% of HUTCHMED shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Neumora Therapeutics and HUTCHMED”s revenue, earnings per share and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Neumora TherapeuticsN/AN/A-$243.79 million($1.47)-1.51
HUTCHMED$630.20 million3.94$37.73 millionN/AN/A

HUTCHMED has higher revenue and earnings than Neumora Therapeutics.

Risk and Volatility

Neumora Therapeutics has a beta of 3.13, meaning that its stock price is 213% more volatile than the S&P 500. Comparatively, HUTCHMED has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Profitability

This table compares Neumora Therapeutics and HUTCHMED’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Neumora TherapeuticsN/A-113.81%-96.90%
HUTCHMEDN/AN/AN/A

Summary

Neumora Therapeutics beats HUTCHMED on 6 of the 10 factors compared between the two stocks.

About Neumora Therapeutics

(Get Free Report)

Neumora Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in developing therapeutic treatments for brain diseases, neuropsychiatric disorders, and neurodegenerative diseases. The company develops navacaprant (NMRA-140), a novel once-daily oral kappa opioid receptor antagonist, which is in phase 3 clinical trials for the treatment of major depressive disorder. It also develops NMRA-511 that is in phase 1 clinical trials in patients with agitation associated with dementia due to Alzheimer’s disease; and NMRA-266, which is in the phase 1 clinical trial for the treatment of schizophrenia and other neuropsychiatric disorders. In addition, its preclinical phase product includes NMRA-NMDA for the treatment of schizophrenia; NMRA-CK1d, a CK1d inhibitor program for the treatment of amyotrophic lateral sclerosis; NMRA-NLRP3 for the treatment of certain neurodegenerative conditions; and NMRA-GCase for the treatment of Parkinson’s disease. The company was formerly known as RBNC Therapeutics, Inc. and changed its name to Neumora Therapeutics, Inc. in October 2021. Neumora Therapeutics, Inc. was incorporated in 2019 and is headquartered in Watertown, Massachusetts.

About HUTCHMED

(Get Free Report)

HUTCHMED (China) Ltd. is a holding company, which engages in the research and development, manufacture, and sale of pharmaceuticals and health-oriented consumer products. It operates through the Oncology/Immunology and Other Ventures segments. The Oncology/Immunology segment includes the discovery, development, and commercialization of targeted therapies and immunotherapies for the treatment of cancer and immunological diseases. The Other Ventures segment involves the other commercial businesses which include the sales, marketing, manufacture, and distribution of prescription drugs and healthcare products. The company was founded on December 18, 2000 and is headquartered in Hong Kong.