Gossamer Bio (NASDAQ:GOSS) vs. Northwest Biotherapeutics (OTCMKTS:NWBO) Critical Analysis

Northwest Biotherapeutics (OTCMKTS:NWBO) and Gossamer Bio (NASDAQ:GOSS) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Institutional & Insider Ownership

0.0% of Northwest Biotherapeutics shares are held by institutional investors. Comparatively, 81.2% of Gossamer Bio shares are held by institutional investors. 8.7% of Northwest Biotherapeutics shares are held by insiders. Comparatively, 5.0% of Gossamer Bio shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Northwest Biotherapeutics and Gossamer Bio”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northwest Biotherapeutics	$1.93 million	193.75	-$62.60 million	($0.07)	-4.34
Gossamer Bio	$95.84 million	2.41	-$179.82 million	($1.06)	-0.96

Northwest Biotherapeutics has higher earnings, but lower revenue than Gossamer Bio. Northwest Biotherapeutics is trading at a lower price-to-earnings ratio than Gossamer Bio, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Northwest Biotherapeutics and Gossamer Bio, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northwest Biotherapeutics	0	0	0	0	N/A
Gossamer Bio	0	0	5	0	3.00

Gossamer Bio has a consensus target price of $9.20, suggesting a potential upside of 801.96%. Given Gossamer Bio’s higher probable upside, analysts clearly believe Gossamer Bio is more favorable than Northwest Biotherapeutics.

Risk and Volatility

Northwest Biotherapeutics has a beta of -0.58, suggesting that its stock price is 158% less volatile than the S&P 500. Comparatively, Gossamer Bio has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500.

Profitability

This table compares Northwest Biotherapeutics and Gossamer Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northwest Biotherapeutics	-4,479.03%	N/A	-253.74%
Gossamer Bio	N/A	-117.33%	-25.02%

Summary

Gossamer Bio beats Northwest Biotherapeutics on 8 of the 13 factors compared between the two stocks.

About Northwest Biotherapeutics

Northwest Biotherapeutics, Inc., a biotechnology company, develops personalized immune therapies for cancer in the United States and internationally. The company develops its products based on DCVax, a platform technology that uses activated dendritic cells to mobilize a patient's own immune system to attack cancer. Its lead product, DCVax-L, which has completed Phase III clinical trials to treat Glioblastoma multiforme brain cancer. The company also develops DCVax-Direct, which is in Phase I/II clinical trials to treat inoperable solid tumors. The company was founded in 1996 and is headquartered in Bethesda, Maryland.

About Gossamer Bio

Gossamer Bio, Inc., a clinical-stage biopharmaceutical company, focuses on developing and commercializing seralutinib for the treatment of pulmonary arterial hypertension (PAH) in the United States. The company is developing GB002, an inhaled, small molecule, platelet-derived growth factor receptor, or PDGFR, colony-stimulatin factor 1 receptor and c-KIT inhibitor, which is in Phase 3 clinical trial for the treatment of PAH. It has license agreements with Pulmokine, Inc. to develop and commercialize GB002 and related backup compounds. The company was formerly known as FSG, Bio, Inc. and changed its name to Gossamer Bio, Inc. in 2017. Gossamer Bio, Inc. was incorporated in 2015 and is headquartered in San Diego, California.