bluebird bio (NASDAQ:BLUE) versus Innate Pharma (NASDAQ:IPHA) Critical Contrast

bluebird bio (NASDAQ:BLUE) and Innate Pharma (NASDAQ:IPHA) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Analyst Ratings

This is a summary of recent recommendations for bluebird bio and Innate Pharma, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
bluebird bio	1	7	2	0	2.10
Innate Pharma	0	0	1	1	3.50

bluebird bio currently has a consensus price target of $44.14, suggesting a potential upside of 1,061.65%. Innate Pharma has a consensus price target of $11.50, suggesting a potential upside of 432.41%. Given bluebird bio’s higher probable upside, analysts clearly believe bluebird bio is more favorable than Innate Pharma.

Earnings & Valuation

This table compares bluebird bio and Innate Pharma”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
bluebird bio	$53.12 million	0.70	-$211.91 million	($37.40)	-0.10
Innate Pharma	$24.85 million	7.29	-$8.19 million	N/A	N/A

Innate Pharma has lower revenue, but higher earnings than bluebird bio.

Risk and Volatility

bluebird bio has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Innate Pharma has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500.

Insider & Institutional Ownership

87.4% of bluebird bio shares are owned by institutional investors. Comparatively, 0.2% of Innate Pharma shares are owned by institutional investors. 1.4% of bluebird bio shares are owned by company insiders. Comparatively, 31.9% of Innate Pharma shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares bluebird bio and Innate Pharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
bluebird bio	-565.74%	-322.46%	-53.17%
Innate Pharma	N/A	N/A	N/A

Summary

Innate Pharma beats bluebird bio on 8 of the 13 factors compared between the two stocks.

About bluebird bio

bluebird bio, Inc., a biotechnology company, researches, develops, and commercializes gene therapies for severe genetic diseases. Its product candidates for severe genetic diseases include ZYNTEGLO (betibeglogene autotemcel) for the treatment of transfusion-dependent ß-thalassemia; lovotibeglogene autotemcel for the treatment of sickle cell disease (SCD); and SKYSONA (elivaldogene autotemcel) to treat cerebral adrenoleukodystrophy. The company’s clinical development programs include HGB-205, HGB-206, and HGB-210 to evaluate the safety and efficacy of lovo-cel in the treatment of patients with SCD; and HGB-204, HGB-205, HGB-207, and HGB-212 to evaluate the safety and efficacy of beti-cel in the treatment of patients with ß-thalassemia. It has license agreement with Orchard Therapeutics Limited. The company was formerly known as Genetix Pharmaceuticals, Inc., and changed its name to bluebird bio, Inc. in September 2010. bluebird bio, Inc. was incorporated in 1992 and is headquartered in Somerville, Massachusetts.

About Innate Pharma

Innate Pharma S.A., a biotechnology company, develops immunotherapies for cancer patients in France and internationally. The company's products include Lacutamab (IPH4102), an anti-KIR3DL2 antibody, which is in Phase II clinical trials for the treatment of cutaneous T-cell and peripheral T-cell lymphoma, as well as in Phase II clinical trials to treat refractory sézary syndrome; Monalizumab, an immune checkpoint inhibitor that is in Phase III clinical trial to treat advanced solid tumors comprising colorectal and lung cancer, as well as head and neck cancer; IPH5201, a blocking antibody that is in Phase II clinical trials targeting the CD39 immunosuppressive pathway; IPH5301, an anti-CD73 antibody targeting the immunosuppressive adenosine pathway to promote antitumor immunity; IPH6401, an BCMA-targeting NK cell engager; and IPH6101, a NKp46-based NK cell engager that targets CD123 proprietary multi-specific antibody format; and IPH62, an B7-H3-targeting NK cell engager. Its products in preclinical trials are IPH43, an anti-MICA/B ADC and IPH45, an antibody drug conjugates (ADC); and IPH67, an undisclosed, multi-specific ANKET. The company has licensing and collaboration agreements with AstraZeneca, Novo Nordisk A/S, Sanofi, and Orega Biotech; and co-development and license agreement with MedImmune Limited. Innate Pharma S.A. was incorporated in 1999 and is headquartered in Marseille, France.