Analyzing AbCellera Biologics (NASDAQ:ABCL) & Pharming Group (NASDAQ:PHAR)

Pharming Group (NASDAQ:PHAR) and AbCellera Biologics (NASDAQ:ABCL) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares Pharming Group and AbCellera Biologics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pharming Group	2.51%	3.40%	1.90%
AbCellera Biologics	-248.83%	-17.49%	-12.36%

Analyst Ratings

This is a summary of current ratings and target prices for Pharming Group and AbCellera Biologics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pharming Group	2	0	3	0	2.20
AbCellera Biologics	1	1	4	1	2.71

Pharming Group currently has a consensus price target of $38.67, indicating a potential upside of 236.23%. AbCellera Biologics has a consensus price target of $12.83, indicating a potential upside of 12.18%. Given Pharming Group’s higher possible upside, equities analysts clearly believe Pharming Group is more favorable than AbCellera Biologics.

Institutional & Insider Ownership

0.0% of Pharming Group shares are held by institutional investors. Comparatively, 61.4% of AbCellera Biologics shares are held by institutional investors. 2.1% of Pharming Group shares are held by insiders. Comparatively, 28.4% of AbCellera Biologics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Pharming Group has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500. Comparatively, AbCellera Biologics has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Valuation & Earnings

This table compares Pharming Group and AbCellera Biologics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pharming Group	$366.48 million	2.22	$2.85 million	$0.12	95.83
AbCellera Biologics	$66.17 million	53.01	-$146.41 million	($0.54)	-21.19

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

Summary

Pharming Group beats AbCellera Biologics on 8 of the 15 factors compared between the two stocks.

About Pharming Group

Pharming Group N.V., a biopharmaceutical company, develops and commercializes protein replacement therapies and precision medicines for the treatment of rare diseases in the United States, Europe, and internationally. The company offers RUCONEST, a recombinant C1 esterase inhibitor for the treatment of acute attacks in adult and adolescent patients with acute hereditary angioedema (HAE); and Joenja (leniolisib), an oral small molecule PI3K? inhibitor for the treatment of activated phosphoinositide 3-kinase delta syndrome. It also develops OTL-105, an investigational ex-vivo autologous hematopoietic stem cell gene therapy for the treatment of HAE. The company has a development collaboration and license agreement with Novartis; and a strategic collaboration agreement with Orchard Therapeutics plc for research, development, manufacturing, and commercialization of OTL-105. Pharming Group N.V. was incorporated in 1988 and is headquartered in Leiden, the Netherlands.

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.