Financial Analysis: AgeX Therapeutics (NYSE:AGE) and NGM Biopharmaceuticals (NASDAQ:NGM)

AgeX Therapeutics (NYSE:AGE) and NGM Biopharmaceuticals (NASDAQ:NGM) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Insider & Institutional Ownership

12.5% of AgeX Therapeutics shares are owned by institutional investors. Comparatively, 75.7% of NGM Biopharmaceuticals shares are owned by institutional investors. 6.5% of AgeX Therapeutics shares are owned by insiders. Comparatively, 35.9% of NGM Biopharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares AgeX Therapeutics and NGM Biopharmaceuticals’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AgeX Therapeutics	$140,000.00	0.00	-$14.80 million	($13.03)	N/A
NGM Biopharmaceuticals	$4.42 million	30.59	-$142.38 million	($1.72)	-0.94

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

Risk & Volatility

AgeX Therapeutics has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, NGM Biopharmaceuticals has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Profitability

This table compares AgeX Therapeutics and NGM Biopharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AgeX Therapeutics	-10,424.65%	N/A	-120.90%
NGM Biopharmaceuticals	-3,223.34%	-77.85%	-67.76%

Analyst Ratings

This is a summary of current recommendations and price targets for AgeX Therapeutics and NGM Biopharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AgeX Therapeutics	0	0	0	0	N/A
NGM Biopharmaceuticals	0	4	0	0	2.00

NGM Biopharmaceuticals has a consensus target price of $3.68, suggesting a potential upside of 127.37%.

Summary

NGM Biopharmaceuticals beats AgeX Therapeutics on 7 of the 10 factors compared between the two stocks.

About AgeX Therapeutics

AgeX Therapeutics, Inc., a biotechnology company, focuses on the development and commercialization of novel therapeutics targeting human aging and degenerative diseases in the United States. The company's lead cell-based therapeutic candidates in development include AGEX-BAT1, a cell therapy product candidate for the treatment of various age-related metabolic disorders, such as Type II adult-onset diabetes and obesity; and AGEX-VASC1, a cell-based therapy to restore vascular support in aged ischemic tissues, such as peripheral vascular disease and ischemic heart disease. Its lead small molecule drug-based therapeutic candidate for scarless wound repair in discovery is AGEX-iTR1547, a drug-based formulation; and lead biologic candidate for induced tissue regeneration is AGEX-iTR1550 (Renelon), a gene delivery technology. AgeX Therapeutics, Inc. has a research collaboration with the University of California at Irvine to develop cellular therapies to treat neurological disorders and diseases. The company was incorporated in 2017 and is based in Alameda, California.

About NGM Biopharmaceuticals

NGM Biopharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery and development of novel therapeutics to treat liver and metabolic diseases, retinal diseases, and cancer. The company develops NGM707, an immunoglobulin-like transcript 2/ immunoglobulin-like transcript 4 dual antagonist monoclonal antibody that is in Phase I/II clinical trials for the treatment of patients with advanced metastatic solid tumors; and Aldafermin, an engineered analog of human hormone fibroblast growth factor 19, which is in Phase IIb clinical trials for the treatment of primary sclerosing cholangitis and non-alcoholic steatohepatitis. It also develops NGM120, an GFRAL antagonist antibody, which is in Phase II clinical trial to treat hyperemesis gravidarum; NGM831 and NGM438 which is in phase I/II clinical trial for the treatment of advanced solid tumors; and NGM621, an monoclonal antibody in Phase II clinical trials for the treatment of geographic atrophy. The company has research collaboration, product development, and license agreements with Merck Sharp & Dohme Corp.; and a collaboration agreement with Merck to focus primarily on the identification, research and development of collaboration compounds directed to targets in the fields of ophthalmology and cardiovascular or metabolic, or CVM, disease, including heart failure. NGM Biopharmaceuticals, Inc. was incorporated in 2007 and is headquartered in South San Francisco, California.