Contrasting 4D Molecular Therapeutics (NASDAQ:FDMT) & Scholar Rock (NASDAQ:SRRK)

4D Molecular Therapeutics (NASDAQ:FDMT) and Scholar Rock (NASDAQ:SRRK) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Profitability

This table compares 4D Molecular Therapeutics and Scholar Rock’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
4D Molecular Therapeutics	N/A	-28.00%	-26.16%
Scholar Rock	N/A	-145.60%	-91.83%

Analyst Recommendations

This is a breakdown of recent recommendations for 4D Molecular Therapeutics and Scholar Rock, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
4D Molecular Therapeutics	1	1	9	0	2.73
Scholar Rock	0	0	6	1	3.14

4D Molecular Therapeutics currently has a consensus price target of $42.56, suggesting a potential upside of 632.45%. Scholar Rock has a consensus price target of $40.43, suggesting a potential downside of 11.59%. Given 4D Molecular Therapeutics’ higher possible upside, equities analysts clearly believe 4D Molecular Therapeutics is more favorable than Scholar Rock.

Volatility and Risk

4D Molecular Therapeutics has a beta of 2.74, indicating that its share price is 174% more volatile than the S&P 500. Comparatively, Scholar Rock has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Earnings & Valuation

This table compares 4D Molecular Therapeutics and Scholar Rock”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
4D Molecular Therapeutics	$17,000.00	15,799.10	-$100.84 million	($2.85)	-2.04
Scholar Rock	$33.19 million	128.99	-$165.79 million	($2.35)	-19.46

4D Molecular Therapeutics has higher earnings, but lower revenue than Scholar Rock. Scholar Rock is trading at a lower price-to-earnings ratio than 4D Molecular Therapeutics, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

99.3% of 4D Molecular Therapeutics shares are owned by institutional investors. Comparatively, 91.1% of Scholar Rock shares are owned by institutional investors. 7.3% of 4D Molecular Therapeutics shares are owned by insiders. Comparatively, 19.2% of Scholar Rock shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

4D Molecular Therapeutics beats Scholar Rock on 9 of the 14 factors compared between the two stocks.

About 4D Molecular Therapeutics

4D Molecular Therapeutics, Inc., a clinical-stage biotherapeutics company, develops genetic medicines using its therapeutic vector evolution platform in the Netherland and the United States. The company develops a portfolio of genetic medicine product candidates focuses in three therapeutic areas for ophthalmology, cardiology, and pulmonology. Its product pipeline includes 4D-150, which is in phase 1/2 clinical trial for the treatment of wet age-related macular degeneration; and is in phase 1/2 clinical trial for the treatment of diabetic macular edema. The company develops 4D-125, which is in phase 1/2 clinical trial for the treatment of x-linked retinitis pigmentosa; 4D-110, which is in phase 1/2 clinical trial for the treatment of choroideremia; 4D-710, which is in phase 1/2 clinical trial for the treatment cystic fibrosis lung disease; and 4D-310 to treat fabry disease cardiomyopathy and is in phase 1/2 clinical trial. In addition, its product candidates comprises 4D-175, which is in pre-clinical development for the treatment for geographic trophy; and 4D-725 to treat alpha-1 antitrypsin deficiency lung disease and is in pre-clinical development. The company has collaboration and licensing agreements with Arbor Biotechnologies, Inc.; Astellas Gene Therapies, Inc; uniQure biopharma B.V.; and Cystic Fibrosis Foundation. 4D Molecular Therapeutics, Inc. was founded in 2013 and is headquartered in Emeryville, California.

About Scholar Rock

Scholar Rock Holding Corporation, a biopharmaceutical company, focuses on the discovery, development, and delivery of medicines for the treatment of serious diseases in which signaling by protein growth factors plays a fundamental role. The company develops Apitegromab, an inhibitor of the activation of myostatin that is in Phase 3 clinical trial for the treatment of spinal muscular atrophy; and SRK-181, which has completed Phase 1 clinical trials for the treatment of cancers that are resistant to checkpoint inhibitor therapies, such as anti-PD-1 or anti-PD-L1 antibody therapies. It is developing a pipeline of product candidates to deliver novel therapies to treat a range of serious diseases, including neuromuscular disorders, cardiometabolic disorders, cancer, fibrosis, and iron-restricted anemia. Scholar Rock Holding Corporation was founded in 2012 and is headquartered in Cambridge, Massachusetts.