Roivant Sciences (NASDAQ:ROIV) vs. Histogen (NASDAQ:HSTO) Critical Analysis

Roivant Sciences (NASDAQ:ROIV) and Histogen (NASDAQ:HSTO) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Risk and Volatility

Roivant Sciences has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Histogen has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Valuation & Earnings

This table compares Roivant Sciences and Histogen’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roivant Sciences	$124.80 million	65.11	$4.35 billion	$5.06	2.17
Histogen	$19,000.00	49.47	-$10.62 million	($2.81)	-0.08

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

Institutional and Insider Ownership

64.8% of Roivant Sciences shares are owned by institutional investors. 4.6% of Roivant Sciences shares are owned by company insiders. Comparatively, 3.3% of Histogen shares are owned by company 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.

Analyst Ratings

This is a summary of recent recommendations for Roivant Sciences and Histogen, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roivant Sciences	0	1	9	0	2.90
Histogen	0	0	0	0	N/A

Roivant Sciences presently has a consensus price target of $17.10, suggesting a potential upside of 55.45%. Given Roivant Sciences’ higher probable upside, equities research analysts clearly believe Roivant Sciences is more favorable than Histogen.

Profitability

This table compares Roivant Sciences and Histogen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Roivant Sciences	3,484.86%	-25.05%	-20.98%
Histogen	N/A	N/A	N/A

Summary

Roivant Sciences beats Histogen on 11 of the 13 factors compared between the two stocks.

About Roivant Sciences

Roivant Sciences Ltd., a commercial-stage biopharmaceutical company, engages in the development and commercialization of medicines for inflammation and immunology areas. The company provides Vants, a model to develop and commercialize its medicines and technologies focusing on biopharmaceutical businesses, discovery-stage companies, and health technology startups. It develops VTAMA, a novel topical for the treatment of psoriasis and atopic dermatitis; batoclimab and IMVT-1402, the fully human monoclonal antibodies targeting the neonatal Fc receptor across various IgG-mediated autoimmune indications; and RVT-3101, an anti-TL1A antibody for ulcerative colitis and Crohn's disease. The company was founded in 2014 and is based in London, the United Kingdom.

About Histogen

Histogen Inc., a clinical-stage therapeutics company, focuses on developing clinical and preclinical small molecule pan-caspase and caspase selective inhibitors that protect the body's natural process to restore immune function. The company's product candidates include emricasan for the treatment of acute bacterial skin and skin structure infections, as well as other infectious diseases. Its preclinical product candidates include CTS-2090 and CTS-2096, which are selective small molecule inhibitors of caspase-1 designed for the treatment of various inflammatory diseases. Histogen Inc. was founded in 2007 and is based in San Diego, California. On April 18, 2024, Histogen Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of California.