SpringWorks Therapeutics (NASDAQ:SWTX) and Caribou Biosciences (NASDAQ:CRBU) Critical Review

Caribou Biosciences (NASDAQ:CRBU) and SpringWorks Therapeutics (NASDAQ:SWTX) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Volatility and Risk

Caribou Biosciences has a beta of 2.43, indicating that its share price is 143% more volatile than the S&P 500. Comparatively, SpringWorks Therapeutics has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.

Valuation and Earnings

This table compares Caribou Biosciences and SpringWorks Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Caribou Biosciences	$34.48 million	4.30	-$102.07 million	($1.45)	-1.13
SpringWorks Therapeutics	$5.45 million	492.26	-$325.10 million	($5.14)	-7.04

Caribou Biosciences has higher revenue and earnings than SpringWorks Therapeutics. SpringWorks Therapeutics is trading at a lower price-to-earnings ratio than Caribou Biosciences, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Caribou Biosciences and SpringWorks Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Caribou Biosciences	-345.05%	-33.42%	-28.01%
SpringWorks Therapeutics	N/A	-66.48%	-57.28%

Analyst Recommendations

This is a summary of recent recommendations for Caribou Biosciences and SpringWorks Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Caribou Biosciences	0	1	2	0	2.67
SpringWorks Therapeutics	0	0	6	0	3.00

Caribou Biosciences currently has a consensus price target of $15.25, indicating a potential upside of 829.88%. SpringWorks Therapeutics has a consensus price target of $68.83, indicating a potential upside of 90.09%. Given Caribou Biosciences’ higher possible upside, research analysts plainly believe Caribou Biosciences is more favorable than SpringWorks Therapeutics.

Insider and Institutional Ownership

77.5% of Caribou Biosciences shares are owned by institutional investors. 9.5% of Caribou Biosciences shares are owned by insiders. Comparatively, 7.6% of SpringWorks Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Caribou Biosciences beats SpringWorks Therapeutics on 10 of the 14 factors compared between the two stocks.

About Caribou Biosciences

Caribou Biosciences, Inc., a clinical-stage biopharmaceutical company, engages in the development of genome-edited allogeneic cell therapies for the treatment of hematologic malignancies in the United States and internationally. Its lead product candidate is CB-010, an allogeneic anti-CD19 CAR-T cell therapy that is in phase 1 clinical trial to treat relapsed or refractory B cell non-Hodgkin lymphoma. The company also develops CB-011, an allogeneic anti-BCMA CAR-T cell therapy that is in phase 1 clinical trial for the treatment of relapsed or refractory multiple myeloma; and CB-012, an allogeneic anti-CD371 CAR-T cell therapy that is in phase 1 clinical trial for the treatment of relapsed or refractory acute myeloid leukemia. Caribou Biosciences, Inc. was incorporated in 2011 and is headquartered in Berkeley, California.

About SpringWorks Therapeutics

SpringWorks Therapeutics, Inc., a commercial-stage biopharmaceutical company, engages in the development and commercialization of medicines for underserved patient populations suffering from rare diseases and cancer. Its lead product candidate is OGSIVEO (nirogacestat), an oral small molecule gamma secretase inhibitor that is in Phase III DeFi trial for the treatment of desmoid tumors; and Nirogacestat, is also in Phase 2 clinical development as a monotherapy for the treatment of ovarian granulosa cell tumors (GCT), a subtype of ovarian cancer. The company is also involved in the development of mirdametinib, an oral small molecule MEK inhibitor that is in Phase 2b clinical trials for the treatment of neurofibromatosis type 1-associated plexiform neurofibromas (NF1-PN); mirdametinib + lifirafenib, a combination therapy that is in Phase 1b clinical trial in patients with advanced or refractory solid tumors; and mirdametinib in monotherapy and combination approaches to treat other genetically defined solid tumors, including Phase 1/2 clinical trial for the treatment of pediatric and young adult patients with low-grade gliomas. In addition, it develops Brimarafenib (BGB-3245), an oral selective small molecule inhibitor of monomeric and dimeric forms of activating BRAF mutations. The company has collaborations with BeiGene, Ltd. and GlaxoSmithKline LLC; and license agreements with Pfizer Inc. for nirogacestat and mirdametinib. It also has a license agreement with Katholieke Universiteit Leuven and the Flanders Institute for Biotechnology for a portfolio of novel small molecule inhibitors of the TEA Domain; and Dana-Farber Cancer Institute for a portfolio of novel small molecule inhibitors of Epidermal Growth Factor Receptor. The company was founded in 2017 and is headquartered in Stamford, Connecticut.