Contrasting AbbVie (NYSE:ABBV) & Foghorn Therapeutics (NASDAQ:FHTX)

Foghorn Therapeutics (NASDAQ:FHTX) and AbbVie (NYSE:ABBV) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.

Analyst Ratings

This is a summary of current ratings and target prices for Foghorn Therapeutics and AbbVie, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Foghorn Therapeutics	1	0	6	1	2.88
AbbVie	0	5	19	2	2.88

Foghorn Therapeutics presently has a consensus price target of $11.43, indicating a potential upside of 132.29%. AbbVie has a consensus price target of $275.95, indicating a potential upside of 7.83%. Given Foghorn Therapeutics’ higher probable upside, equities analysts clearly believe Foghorn Therapeutics is more favorable than AbbVie.

Valuation and Earnings

This table compares Foghorn Therapeutics and AbbVie”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Foghorn Therapeutics	$30.91 million	9.45	-$74.28 million	($0.98)	-5.02
AbbVie	$61.16 billion	7.39	$4.23 billion	$3.54	72.30

AbbVie has higher revenue and earnings than Foghorn Therapeutics. Foghorn Therapeutics is trading at a lower price-to-earnings ratio than AbbVie, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Foghorn Therapeutics and AbbVie’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Foghorn Therapeutics	-175.78%	N/A	-31.17%
AbbVie	9.80%	-422.07%	14.34%

Volatility & Risk

Foghorn Therapeutics has a beta of 2.86, meaning that its share price is 186% more volatile than the S&P 500. Comparatively, AbbVie has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500.

Insider and Institutional Ownership

61.5% of Foghorn Therapeutics shares are held by institutional investors. Comparatively, 70.2% of AbbVie shares are held by institutional investors. 9.0% of Foghorn Therapeutics shares are held by insiders. Comparatively, 0.1% of AbbVie shares are held 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.

Summary

AbbVie beats Foghorn Therapeutics on 10 of the 15 factors compared between the two stocks.

About Foghorn Therapeutics

Foghorn Therapeutics Inc., a clinical-stage biopharmaceutical company, engages in the discovery and development of medicines targeting genetically determined dependencies within the chromatin regulatory system in the United States. The company uses its proprietary Gene Traffic Control platform to identify, validate, and potentially drug targets within the system. It develops FHD-286, a small molecule inhibitor of the enzymatic activity of BRG1 and BRM that is in phase I for the treatment of relapsed and/or refractory acute myeloid leukemia/myelodysplastic syndrome. The company is also developing therapies for mutant cancers, such as Non-Small Cell Lung, bladder, endometrial, colorectal, and melanoma cancers; and dependent cancers, including prostate cancer and diffuse large b-cell lymphoma. It has a research collaboration and license agreement with Merck Sharp & Dohme Corp. to discover and develop novel oncology therapeutics against a transcription factor target; and Eli Lilly and Company for developing FHD-909, a selective ATPase inhibitor of BRM. Foghorn Therapeutics Inc. was incorporated in 2015 and is headquartered in Cambridge, Massachusetts.

About AbbVie

AbbVie Inc. discovers, develops, manufactures, and sells pharmaceuticals worldwide. The company offers Humira, an injection for autoimmune and intestinal Behçet's diseases, and pyoderma gangrenosum; Skyrizi to treat moderate to severe plaque psoriasis, psoriatic disease, and Crohn's disease; Rinvoq to treat rheumatoid and psoriatic arthritis, ankylosing spondylitis, atopic dermatitis, axial spondyloarthropathy, ulcerative colitis, and Crohn's disease; Imbruvica for the treatment of adult patients with blood cancers; Epkinly to treat lymphoma; Elahere to treat cancer; and Venclexta/Venclyxto to treat blood cancers. It also provides facial injectables, plastics and regenerative medicine, body contouring, and skincare products; botox therapeutic; Vraylar for depressive disorder; Duopa and Duodopa to treat advanced Parkinson's disease; Ubrelvy for the acute treatment of migraine in adults; and Qulipta for episodic and chronic migraine. In addition, the company offers Ozurdex for eye diseases; Lumigan/Ganfort and Alphagan/Combigan for the reduction of elevated intraocular pressure in patients with open angle glaucoma or ocular hypertension; Restasis to increase tear production; and other eye care products. Further, it provides Mavyret/Maviret to treat chronic hepatitis C virus genotype 1-6 infection; Creon, a pancreatic enzyme therapy; Lupron to treat advanced prostate cancer, endometriosis and central precocious puberty, and patients with anemia caused by uterine fibroids; Linzess/Constella to treat irritable bowel syndrome with constipation and chronic idiopathic constipation; and Synthroid for hypothyroidism. It has collaborations with Calico Life Sciences LLC; REGENXBIO Inc.; Janssen Biotech, Inc.; and Genentech, Inc., as well as collaboration with Tentarix Biotherapeutics, LP to develop conditionally-active and multi-specific biologics for oncology and immunology. The company was incorporated in 2012 and is headquartered in North Chicago, Illinois.