Critical Survey: Pharming Group (NASDAQ:PHAR) versus AbCellera Biologics (NASDAQ:ABCL)
by Danessa Lincoln · The Markets DailyPharming Group (NASDAQ:PHAR – Get Free Report) and AbCellera Biologics (NASDAQ:ABCL – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
Institutional and Insider Ownership
0.0% of Pharming Group shares are held by institutional investors. Comparatively, 61.4% of AbCellera Biologics shares are held by institutional investors. 2.1% of Pharming Group shares are held by company insiders. Comparatively, 28.4% of AbCellera Biologics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings for Pharming Group and AbCellera Biologics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pharming Group | 2 | 0 | 3 | 0 | 2.20 |
| AbCellera Biologics | 1 | 1 | 4 | 1 | 2.71 |
Pharming Group currently has a consensus target price of $38.67, suggesting a potential upside of 262.35%. AbCellera Biologics has a consensus target price of $12.83, suggesting a potential upside of 22.53%. Given Pharming Group’s higher possible upside, equities research analysts clearly believe Pharming Group is more favorable than AbCellera Biologics.
Earnings and Valuation
This table compares Pharming Group and AbCellera Biologics”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pharming Group | $376.13 million | 2.01 | $2.85 million | $0.12 | 88.92 |
| AbCellera Biologics | $75.13 million | 42.75 | -$146.41 million | ($0.54) | -19.40 |
Pharming Group has higher revenue and earnings than AbCellera Biologics. AbCellera Biologics is trading at a lower price-to-earnings ratio than Pharming Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Pharming Group and AbCellera Biologics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pharming Group | 2.51% | 3.40% | 1.90% |
| AbCellera Biologics | -248.83% | -17.49% | -12.36% |
Risk & Volatility
Pharming Group has a beta of 0.01, suggesting that its stock price is 99% less volatile than the S&P 500. Comparatively, AbCellera Biologics has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.
Summary
Pharming Group beats AbCellera Biologics on 8 of the 15 factors compared between the two stocks.
About Pharming Group
Pharming Group N.V., a biopharmaceutical company, develops and commercializes protein replacement therapies and precision medicines for the treatment of rare diseases in the United States, Europe, and internationally. The company offers RUCONEST, a recombinant C1 esterase inhibitor for the treatment of acute attacks in adult and adolescent patients with acute hereditary angioedema (HAE); and Joenja (leniolisib), an oral small molecule PI3K? inhibitor for the treatment of activated phosphoinositide 3-kinase delta syndrome. It also develops OTL-105, an investigational ex-vivo autologous hematopoietic stem cell gene therapy for the treatment of HAE. The company has a development collaboration and license agreement with Novartis; and a strategic collaboration agreement with Orchard Therapeutics plc for research, development, manufacturing, and commercialization of OTL-105. Pharming Group N.V. was incorporated in 1988 and is headquartered in Leiden, the Netherlands.
About AbCellera Biologics
AbCellera Biologics Inc. builds an engine for antibody drug discovery and development. Its engine discovers antibodies from natural immune responses, which are pre-enriched for antibodies. The company’s preclinical products are ABCL635 for metabolic and endocrine conditions; and ABCL575 for atopic dermatitis. It has a research collaboration and license agreement with Eli Lilly and Company; a research collaboration with Confo Therapeutics for the discovery of therapeutic antibody candidates targeting two undisclosed GPCR targets; and strategic collaboration with Biogen Inc. to discover therapeutic antibodies for neurological conditions, as well as collaboration with Viking Global Investors and ArrowMark Partners. The company was incorporated in 2012 and is headquartered in Vancouver, Canada.