Head-To-Head Contrast: Forma Therapeutics (NASDAQ:FMTX) & Twist Bioscience (NASDAQ:TWST)

Forma Therapeutics (NASDAQ:FMTXGet Rating) and Twist Bioscience (NASDAQ:TWSTGet Rating) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Forma Therapeutics and Twist Bioscience, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Forma Therapeutics 0 5 1 0 2.17
Twist Bioscience 0 2 2 0 2.50

Forma Therapeutics currently has a consensus price target of $29.17, suggesting a potential upside of 45.76%. Twist Bioscience has a consensus price target of $40.25, suggesting a potential upside of 57.66%. Given Twist Bioscience’s stronger consensus rating and higher probable upside, analysts plainly believe Twist Bioscience is more favorable than Forma Therapeutics.

Insider and Institutional Ownership

87.4% of Forma Therapeutics shares are owned by institutional investors. 5.8% of Forma Therapeutics shares are owned by company insiders. Comparatively, 3.1% of Twist Bioscience shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Forma Therapeutics has a beta of -0.94, indicating that its share price is 194% less volatile than the S&P 500. Comparatively, Twist Bioscience has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Profitability

This table compares Forma Therapeutics and Twist Bioscience’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Forma Therapeutics N/A -39.68% -35.33%
Twist Bioscience -107.02% -29.07% -24.09%

Valuation and Earnings

This table compares Forma Therapeutics and Twist Bioscience’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Forma Therapeutics $100.56 million 9.52 -$172.96 million ($4.00) -5.00
Twist Bioscience $203.57 million 7.07 -$217.86 million ($4.03) -6.33

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

Summary

Twist Bioscience beats Forma Therapeutics on 7 of the 13 factors compared between the two stocks.

About Forma Therapeutics

(Get Rating)

Forma Therapeutics Holdings, Inc., a clinical-stage biopharmaceutical company, focuses on development and commercialization of novel therapeutics for treatment of rare hematologic diseases and cancers. Its core product candidates for development include FT-4202, which is Phase 1 trial for the treatment of sickle cell disease and other hemoglobinopathies; and FT-7051 for the treatment of metastatic castration-resistant prostate cancer. The company is also developing Olutasidenib, a selective inhibitor for cancers with isocitrate dehydrogenase 1 gene mutations, which is in Phase II trial for the treatment of relapsed/refractory acute myeloid leukemia and Phase I trial to treat glioma; and FT-8225, a liver-targeted fatty-acid synthase inhibitor designed to block de novo lipogenesis in the liver. Forma Therapeutics Holdings, Inc. was founded in 2007 and is headquartered in Watertown, Massachusetts. As of October 14, 2022, Forma Therapeutics Holdings, Inc. operates as a subsidiary of Novo Nordisk A/S.

About Twist Bioscience

(Get Rating)

Twist Bioscience Corporation, a synthetic biology company, manufactures and sells synthetic DNA-based products. The company's DNA synthesis platform enables the manufacturing of synthetic DNA by writing DNA on a silicon chip. It offers synthetic DNA-based products, including synthetic genes, tools for sample preparation, antibody libraries for drug discovery and development, and DNA as a digital data storage medium. The company has collaboration agreements with Victorian Clinical Genetic Services; Vivlion GmbH.; Kyowa Kirin Pharmaceutical Research, Inc.; deepCDR Biologics AG; and Centogene N.V to develop advanced sequencing tools. It also has a research collaboration with Boehringer Ingelheim International GmbH to use proprietary antibody libraries to discover therapeutic antibodies against multiple targets. Twist Bioscience Corporation was incorporated in 2013 and is headquartered in South San Francisco, California.

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