Critical Review: Vir Biotechnology (NASDAQ:VIR) vs. Cardiff Oncology (NASDAQ:CRDF)

Vir Biotechnology (NASDAQ:VIR) and Cardiff Oncology (NASDAQ:CRDF) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

This table compares Vir Biotechnology and Cardiff Oncology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vir Biotechnology	-678.40%	-36.71%	-31.00%
Cardiff Oncology	-6,238.17%	-73.97%	-60.40%

Volatility & Risk

Vir Biotechnology has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Cardiff Oncology has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500.

Institutional and Insider Ownership

65.3% of Vir Biotechnology shares are owned by institutional investors. Comparatively, 16.3% of Cardiff Oncology shares are owned by institutional investors. 15.6% of Vir Biotechnology shares are owned by insiders. Comparatively, 7.8% of Cardiff Oncology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Vir Biotechnology and Cardiff Oncology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vir Biotechnology	$86.18 million	15.29	-$615.06 million	($3.92)	-2.44
Cardiff Oncology	$490,000.00	495.65	-$41.44 million	($0.94)	-5.05

Cardiff Oncology has lower revenue, but higher earnings than Vir Biotechnology. Cardiff Oncology is trading at a lower price-to-earnings ratio than Vir Biotechnology, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Vir Biotechnology and Cardiff Oncology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vir Biotechnology	0	1	5	0	2.83
Cardiff Oncology	0	0	3	0	3.00

Vir Biotechnology presently has a consensus target price of $34.83, suggesting a potential upside of 263.98%. Cardiff Oncology has a consensus target price of $10.33, suggesting a potential upside of 117.54%. Given Vir Biotechnology’s higher probable upside, equities research analysts clearly believe Vir Biotechnology is more favorable than Cardiff Oncology.

Summary

Vir Biotechnology beats Cardiff Oncology on 9 of the 14 factors compared between the two stocks.

About Vir Biotechnology

Vir Biotechnology, Inc., an immunology company, develops therapeutic products to treat and prevent serious infectious diseases. Its clinical development pipeline consists of product candidates targeting hepatitis delta virus (HDV), hepatitis B virus (HBV), and human immunodeficiency virus (HIV). The company’s preclinical candidates include those targeting influenza A and B, coronavirus disease 2019, respiratory syncytial virus (RSV) and human metapneumovirus (MPV), and human papillomavirus (HPV). The company has grant agreements with Bill & Melinda Gates Foundation and National Institutes of Health; an option and license agreement with Brii Biosciences Limited; a collaboration and license agreement with Alnylam Pharmaceuticals, Inc.; license agreements with MedImmune, LLC; collaboration with WuXi Biologics (Hong Kong) Limited and Glaxo Wellcome UK Ltd.; and a collaborative research agreement with GlaxoSmithKline Biologicals S.A, as well as license agreement with Sanofi for three clinical-stage masked T-cell engagers (TCEs) and exclusive use of the protease-cleavable masking platform for oncology and infectious diseases. It also has a manufacturing agreement with Samsung Biologics Co.,Ltd. The company was incorporated in 2016 and is headquartered in San Francisco, California.

About Cardiff Oncology

Cardiff Oncology, Inc., a clinical-stage biotechnology company, develops novel therapies to treat various cancers in California. Its lead drug candidate is onvansertib, an oral selective Polo-like Kinase 1 Inhibitor to treatment a range of solid tumor cancers and KRAS/NRAS-mutated metastatic colorectal and metastatic pancreatic cancer, as well as investigator-initiated trials in triple negative breast cancer and small cell lung cancer; and TROV-054 is a Phase 1b/2 for FOLFIRI and bevacizumab. The company primarily serves pharmaceutical manufacturers. The company was formerly known as Trovagene, Inc. and changed its name to Cardiff Oncology, Inc. in May 2012. Cardiff Oncology, Inc. was incorporated in 1999 and is headquartered in San Diego, California.