Bicycle Therapeutics (NASDAQ:BCYC) and AbCellera Biologics (NASDAQ:ABCL) Financial Analysis

AbCellera Biologics (NASDAQ:ABCL) and Bicycle Therapeutics (NASDAQ:BCYC) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Volatility and Risk

AbCellera Biologics has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, Bicycle Therapeutics has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.

Valuation and Earnings

This table compares AbCellera Biologics and Bicycle Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AbCellera Biologics	$33.05 million	24.38	-$146.40 million	($0.52)	-5.27
Bicycle Therapeutics	$39.57 million	27.57	-$180.66 million	($4.45)	-5.73

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for AbCellera Biologics and Bicycle Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AbCellera Biologics	0	1	5	0	2.83
Bicycle Therapeutics	0	2	7	0	2.78

AbCellera Biologics currently has a consensus target price of $14.20, suggesting a potential upside of 418.25%. Bicycle Therapeutics has a consensus target price of $44.56, suggesting a potential upside of 74.73%. Given AbCellera Biologics’ stronger consensus rating and higher probable upside, equities research analysts plainly believe AbCellera Biologics is more favorable than Bicycle Therapeutics.

Profitability

This table compares AbCellera Biologics and Bicycle Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AbCellera Biologics	-463.77%	-13.40%	-10.44%
Bicycle Therapeutics	-417.88%	-32.80%	-23.30%

Institutional & Insider Ownership

61.4% of AbCellera Biologics shares are held by institutional investors. Comparatively, 86.2% of Bicycle Therapeutics shares are held by institutional investors. 32.5% of AbCellera Biologics shares are held by company insiders. Comparatively, 8.5% of Bicycle Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

AbCellera Biologics beats Bicycle Therapeutics on 8 of the 14 factors compared between the two stocks.

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.

About Bicycle Therapeutics

Bicycle Therapeutics plc, a clinical-stage biopharmaceutical company, develops a class of medicines for diseases that are underserved by existing therapeutics in the United States and the United Kingdom. Its product pipeline comprising BT8009, a bicycle toxin conjugate (BTC) which is in phase I/II/III clinical trial for the treatment of high nectin-4 expressing tumors; BT5528, a BTC which is in phase I/II clinical trial for the treatment of Ephrin type A receptor 2 expressing tumor; BT7480, a Bicycle TICA molecule which is in phase I/II targeting Nectin-4 and agonizing CD137; and BT7455, a Bicycle TICA molecule targeting Ephrin type A receptor 2 and CD137 and is in preclinical trial. The company also developing BT1718, a bicycle toxin conjugate (BTC), which is in Phase I/IIa clinical trials targeting tumors that express Membrane Type 1 matrix metalloprotease; and BT7401, a multivalent bicycle CD137 agonist which is in phase IIa to treat advanced solid tumors. In addition, it develops Novel anti-infective, which is in preclinical trial targeting anti-infectives disease; CNS targets, which is in preclinical trial targeting CNS disease; and Novel neuromuscular targets, which is in preclinical trial targeting neuromuscular disease. Further, the company collaborates with biopharmaceutical companies and organizations to develop programs in therapeutic areas. It has collaboration and license agreement with Bayer Consumer Care AG; Novartis Pharma AG; Cancer Research UK; Cancer Research Technology Ltd; and Oxurion NV. Bicycle Therapeutics plc was incorporated in 2009 and is headquartered in Cambridge, the United Kingdom.