Design Therapeutics (NASDAQ:DSGN – Get Free Report) and Longeveron (NASDAQ:LGVN – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Risk & Volatility
Design Therapeutics has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500. Comparatively, Longeveron has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500.
Profitability
This table compares Design Therapeutics and Longeveron’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Design Therapeutics | N/A | -20.79% | -19.89% |
| Longeveron | -2,129.24% | -300.96% | -164.96% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Design Therapeutics | 0 | 5 | 1 | 0 | 2.17 |
| Longeveron | 0 | 0 | 1 | 0 | 3.00 |
Design Therapeutics presently has a consensus target price of $6.60, indicating a potential upside of 97.01%. Longeveron has a consensus target price of $12.00, indicating a potential upside of 645.34%. Given Longeveron’s stronger consensus rating and higher possible upside, analysts plainly believe Longeveron is more favorable than Design Therapeutics.
Earnings & Valuation
This table compares Design Therapeutics and Longeveron’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Design Therapeutics | N/A | N/A | -$66.86 million | ($1.05) | -3.19 |
| Longeveron | $710,000.00 | 14.40 | -$21.41 million | ($9.61) | -0.17 |
Longeveron has higher revenue and earnings than Design Therapeutics. Design Therapeutics is trading at a lower price-to-earnings ratio than Longeveron, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
56.6% of Design Therapeutics shares are owned by institutional investors. Comparatively, 10.0% of Longeveron shares are owned by institutional investors. 31.2% of Design Therapeutics shares are owned by insiders. Comparatively, 19.1% of Longeveron shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Design Therapeutics beats Longeveron on 7 of the 12 factors compared between the two stocks.
About Design Therapeutics
Design Therapeutics, Inc. a biopharmaceutical company, researches, designs, develops, and commercializes small molecule therapeutic drugs for the treatment of genetic diseases in the United States. The company utilizes its GeneTAC platform to design and develop therapeutic candidates for inherited diseases caused by nucleotide repeat expansion. Its lead product candidates for potentially disease-modifying treatment comprises Friedreich Ataxia, a monogenic, autosomal recessive, progressive multi-system disease that affects organ systems dependent on mitochondrial function that brings to neurological, cardiac, and metabolic dysfunction; Myotonic Dystrophy Type-1, a dominantly-inherited, monogenic progressive neuromuscular disease affecting skeletal muscle, heart, brain, and other organs; Fuchs Endothelial Corneal Dystrophy, a genetic eye disease characterized by bilateral degeneration of corneal endothelial cells and progressive loss of vision; and Huntington's Disease, a dominantly inherited, monogenic neurodegenerative disease characterized by movement, cognitive, and psychiatric disorders. Design Therapeutics, Inc. was incorporated in 2017 and is headquartered in Carlsbad, California.
About Longeveron
Longeveron Inc., a clinical stage biotechnology company, develops cellular therapies for aging-related and life-threatening conditions in the United States and Japan. The company's lead investigational product is the LOMECEL-B, an allogeneic mesenchymal stem cell formulation sourced from the bone marrow of young and healthy adult donors. It is conducting Phase 1, Phase 1/2, Phase 2a, and Phase 2b clinical trials in various indications, such as aging-related frailty, alzheimer's disease, and hypoplastic left heart syndrome. The company was incorporated in 2014 and is headquartered in Miami, Florida.
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