Black Diamond Therapeutics (NASDAQ:BDTX) & Humacyte (NASDAQ:HUMA) Head-To-Head Survey

Black Diamond Therapeutics (NASDAQ:BDTX) and Humacyte (NASDAQ:HUMA) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and price targets for Black Diamond Therapeutics and Humacyte, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Black Diamond Therapeutics	0	0	3	0	3.00
Humacyte	0	1	3	0	2.75

Black Diamond Therapeutics currently has a consensus target price of $12.67, indicating a potential upside of 171.82%. Humacyte has a consensus target price of $8.00, indicating a potential upside of 66.67%. Given Black Diamond Therapeutics’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Black Diamond Therapeutics is more favorable than Humacyte.

Valuation and Earnings

This table compares Black Diamond Therapeutics and Humacyte’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Black Diamond Therapeutics	N/A	N/A	-$82.44 million	($1.66)	-2.81
Humacyte	$1.57 million	364.07	-$110.78 million	($1.00)	-4.80

Black Diamond Therapeutics has higher earnings, but lower revenue than Humacyte. Humacyte is trading at a lower price-to-earnings ratio than Black Diamond Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Black Diamond Therapeutics and Humacyte’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Black Diamond Therapeutics	N/A	-72.94%	-53.79%
Humacyte	N/A	-306.81%	-69.64%

Risk & Volatility

Black Diamond Therapeutics has a beta of 2.5, indicating that its share price is 150% more volatile than the S&P 500. Comparatively, Humacyte has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500.

Insider and Institutional Ownership

95.5% of Black Diamond Therapeutics shares are owned by institutional investors. Comparatively, 44.7% of Humacyte shares are owned by institutional investors. 8.9% of Black Diamond Therapeutics shares are owned by insiders. Comparatively, 23.1% of Humacyte shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Black Diamond Therapeutics beats Humacyte on 8 of the 11 factors compared between the two stocks.

About Black Diamond Therapeutics

Black Diamond Therapeutics, Inc., a clinical-stage oncology medicine company, focuses on the discovery and development of MasterKey therapies for patients with genetically defined tumors. The company's lead product candidate is BDTX-1535, a brain-penetrant epidermal growth factor receptor MasterKey inhibitor, which is in phase 2 clinical trial for the treatment of epidermal growth factor receptor mutant non-small cell lung cancer, as well as phase 1 clinical trial to treat glioblastoma. It is also developing BDTX-4933, a brain-penetrant RAF MasterKey inhibitor targeting KRAS, NRAS, and BRAF alterations in solid tumors that is in phase 1 clinical trial. In addition, the company is developing BDTX-4876, a MasterKey inhibitor of oncogenic FGFR2/3 mutations with selectivity versus FGFR1/4, which is in preclinical stage. The company was formerly known as ASET Therapeutics, Inc. and changed its name to Black Diamond Therapeutics, Inc. in January 2018. Black Diamond Therapeutics, Inc. was incorporated in 2014 and is headquartered in Cambridge, Massachusetts.

About Humacyte

Humacyte, Inc. engages in the development and manufacture of off-the-shelf, implantable, and bioengineered human tissues for the treatment of diseases and conditions across a range of anatomic locations in multiple therapeutic areas. The company using its proprietary and scientific technology platform to engineer and manufacture human acellular vessels (HAVs) to be implanted into patient without inducing a foreign body response or leading to immune rejection. It is developing a portfolio of HAVs, which would target the vascular repair, reconstruction, and replacement market, including vascular trauma; arteriovenous access for hemodialysis; peripheral arterial disease; pediatric heart surgery; and coronary artery bypass grafting, as well as for the delivery of cellular therapy, including pancreatic islet cell transplantation to treat Type 1 diabetes. The company was founded in 2004 and is headquartered in Durham, North Carolina.