Analyzing Gyre Therapeutics (NASDAQ:GYRE) & Insmed (NASDAQ:INSM)

Gyre Therapeutics (NASDAQ:GYRE) and Insmed (NASDAQ:INSM) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Valuation & Earnings

This table compares Gyre Therapeutics and Insmed’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gyre Therapeutics	$113.45 million	8.13	-$92.93 million	N/A	N/A
Insmed	$305.21 million	34.96	-$749.57 million	($5.23)	-13.73

Gyre Therapeutics has higher earnings, but lower revenue than Insmed.

Profitability

This table compares Gyre Therapeutics and Insmed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gyre Therapeutics	N/A	-730.65%	-124.94%
Insmed	-236.74%	N/A	-56.78%

Institutional & Insider Ownership

24.0% of Gyre Therapeutics shares are held by institutional investors. 2.9% of Gyre Therapeutics shares are held by company insiders. Comparatively, 4.6% of Insmed shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Gyre Therapeutics and Insmed, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gyre Therapeutics	0	0	0	0	N/A
Insmed	0	0	16	0	3.00

Insmed has a consensus price target of $74.50, indicating a potential upside of 3.75%. Given Insmed’s higher possible upside, analysts clearly believe Insmed is more favorable than Gyre Therapeutics.

Volatility and Risk

Gyre Therapeutics has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500. Comparatively, Insmed has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Summary

Insmed beats Gyre Therapeutics on 7 of the 11 factors compared between the two stocks.

About Gyre Therapeutics

Gyre Therapeutics, Inc., a biopharmaceutical company, primarily focuses on the development and commercialization of Hydronidone for the treatment of Metabolic Dysfunction Associated Steatohepatitis in the United States. Its Hydronidone is also being evaluated for the treatment of liver fibrosis across a spectrum of chronic liver diseases. In addition, it advances a product pipeline in China, including Pirfenidone, for dermatomyositis interstitial lung disease, systemic sclerosis-associated interstitial lung disease, and pneumoconiosis, as well as for diabetic kidney disease; and product candidates for acute-on-chronic liver failure, chronic obstructive pulmonary disease, and pulmonary arterial hypertension. The company was founded in 2002 and is headquartered in San Diego, California.

About Insmed

Insmed Incorporated is a global biopharmaceutical company on a mission to transform the lives of patients with serious and rare diseases. Insmed’s first commercial product is ARIKAYCE® (amikacin liposome inhalation suspension), which is approved in the United States for the treatment of Mycobacterium avium complex (MAC) lung disease as part of a combination antibacterial drug regimen for adult patients with limited or no alternative treatment options. MAC lung disease is a rare and often chronic infection that can cause irreversible lung damage and can be fatal. Insmed’s earlier-stage clinical pipeline includes INS1007, a novel oral reversible inhibitor of dipeptidyl peptidase 1 with therapeutic potential in non-cystic fibrosis bronchiectasis and other inflammatory diseases, and INS1009, an inhaled formulation of a treprostinil prodrug that may offer a differentiated product profile for rare pulmonary disorders, including pulmonary arterial hypertension.