Financial Analysis: 4D Molecular Therapeutics (NASDAQ:FDMT) vs. IDEAYA Biosciences (NASDAQ:IDYA)

4D Molecular Therapeutics (NASDAQ:FDMT) and IDEAYA Biosciences (NASDAQ:IDYA) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Profitability

This table compares 4D Molecular Therapeutics and IDEAYA Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
4D Molecular Therapeutics	-194.74%	-41.33%	-35.90%
IDEAYA Biosciences	-75.93%	-16.73%	-15.34%

Earnings & Valuation

This table compares 4D Molecular Therapeutics and IDEAYA Biosciences”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
4D Molecular Therapeutics	$92.01 million	7.15	-$140.11 million	($2.63)	-4.52
IDEAYA Biosciences	$218.71 million	12.84	-$113.70 million	($1.94)	-16.47

IDEAYA Biosciences has higher revenue and earnings than 4D Molecular Therapeutics. IDEAYA Biosciences is trading at a lower price-to-earnings ratio than 4D Molecular Therapeutics, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

99.3% of 4D Molecular Therapeutics shares are held by institutional investors. Comparatively, 98.3% of IDEAYA Biosciences shares are held by institutional investors. 7.9% of 4D Molecular Therapeutics shares are held by company insiders. Comparatively, 4.7% of IDEAYA Biosciences shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for 4D Molecular Therapeutics and IDEAYA Biosciences, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
4D Molecular Therapeutics	1	1	10	0	2.75
IDEAYA Biosciences	1	1	13	0	2.80

4D Molecular Therapeutics presently has a consensus target price of $30.22, suggesting a potential upside of 153.97%. IDEAYA Biosciences has a consensus target price of $50.55, suggesting a potential upside of 58.15%. Given 4D Molecular Therapeutics’ higher possible upside, equities analysts plainly believe 4D Molecular Therapeutics is more favorable than IDEAYA Biosciences.

Volatility and Risk

4D Molecular Therapeutics has a beta of 2.75, suggesting that its share price is 175% more volatile than the S&P 500. Comparatively, IDEAYA Biosciences has a beta of -0.04, suggesting that its share price is 104% less volatile than the S&P 500.

Summary

IDEAYA Biosciences beats 4D Molecular Therapeutics on 9 of the 14 factors compared between the two stocks.

About 4D Molecular Therapeutics

4D Molecular Therapeutics, Inc., a clinical-stage biotherapeutics company, develops genetic medicines using its therapeutic vector evolution platform in the Netherland and the United States. The company develops a portfolio of genetic medicine product candidates focuses in three therapeutic areas for ophthalmology, cardiology, and pulmonology. Its product pipeline includes 4D-150, which is in phase 1/2 clinical trial for the treatment of wet age-related macular degeneration; and is in phase 1/2 clinical trial for the treatment of diabetic macular edema. The company develops 4D-125, which is in phase 1/2 clinical trial for the treatment of x-linked retinitis pigmentosa; 4D-110, which is in phase 1/2 clinical trial for the treatment of choroideremia; 4D-710, which is in phase 1/2 clinical trial for the treatment cystic fibrosis lung disease; and 4D-310 to treat fabry disease cardiomyopathy and is in phase 1/2 clinical trial. In addition, its product candidates comprises 4D-175, which is in pre-clinical development for the treatment for geographic trophy; and 4D-725 to treat alpha-1 antitrypsin deficiency lung disease and is in pre-clinical development. The company has collaboration and licensing agreements with Arbor Biotechnologies, Inc.; Astellas Gene Therapies, Inc; uniQure biopharma B.V.; and Cystic Fibrosis Foundation. 4D Molecular Therapeutics, Inc. was founded in 2013 and is headquartered in Emeryville, California.

About IDEAYA Biosciences

IDEAYA Biosciences, Inc., a synthetic lethality-focused precision medicine oncology company, discovers and develops targeted therapeutics for patient populations selected using molecular diagnostics in the United States. The company's products in development include IDE196, a protein kinase C inhibitor that is in Phase 2/3 clinical trials for genetically defined cancers having GNAQ or GNA11 gene mutations; IDE397, a methionine adenosyltransferase 2a inhibitor that is in Phase 1/2 clinical trials for patients with solid tumors having methylthioadenosine phosphorylase gene deletions, such as non-small cell lung, bladder, gastric, and esophageal cancers; IDE161, a poly ADP-ribose glycohydrolase inhibitor that is in Phase 1 clinical trial to treat tumors with homologous recombination deficiency (HRD), and other genetic or molecular signatures; GSK101, a Pol Theta Helicase inhibitor that is in Phase 1 clinical trial for the treatment of tumors with BRCA or other homologous recombination, and HRD mutations; and Werner Helicase inhibitors for tumors with high microsatellite instability. It offers preclinical research programs focused on pharmacological inhibition; DECIPHER dual CRISPR library for synthetic lethality target and biomarker discovery; and INQUIRE chemical library and HARMONY machine-learning engines to enhance its drug discovery platform. The company has strategic alliances with GlaxoSmithKline, Pfizer Inc., Novartis International Pharmaceuticals Ltd., Amgen Inc., Gilead Sciences, Inc., Cancer Research UK, and the University of Manchester. IDEAYA Biosciences, Inc. was incorporated in 2015 and is headquartered in South San Francisco, California.