Head-To-Head Contrast: Lexeo Therapeutics (NASDAQ:LXEO) and Passage Bio (NASDAQ:PASG)

Passage Bio (NASDAQ:PASG) and Lexeo Therapeutics (NASDAQ:LXEO) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Analyst Ratings

This is a summary of recent ratings for Passage Bio and Lexeo Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Passage Bio	0	0	3	0	3.00
Lexeo Therapeutics	0	0	8	1	3.11

Passage Bio currently has a consensus target price of $9.00, suggesting a potential upside of 1,568.83%. Lexeo Therapeutics has a consensus target price of $22.71, suggesting a potential upside of 241.57%. Given Passage Bio’s higher possible upside, equities research analysts clearly believe Passage Bio is more favorable than Lexeo Therapeutics.

Profitability

This table compares Passage Bio and Lexeo Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Passage Bio	N/A	-72.53%	-52.10%
Lexeo Therapeutics	N/A	-57.66%	-48.18%

Institutional and Insider Ownership

53.5% of Passage Bio shares are held by institutional investors. Comparatively, 60.7% of Lexeo Therapeutics shares are held by institutional investors. 4.3% of Passage Bio shares are held by company insiders. Comparatively, 4.5% of Lexeo Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Passage Bio and Lexeo Therapeutics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Passage Bio	N/A	N/A	-$102.06 million	($1.17)	-0.46
Lexeo Therapeutics	$650,000.00	338.33	-$66.39 million	($3.16)	-2.10

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

Summary

Lexeo Therapeutics beats Passage Bio on 9 of the 12 factors compared between the two stocks.

About Passage Bio

Passage Bio, Inc., a genetic medicines company, develops gene therapies for central nervous system diseases. It develops PBGM01, a functional GLB1 gene encoding ß-galactosidase for infantile GM1; PBFT02, a functional granulin (GRN) and gene encoding progranulin (PGRN) for the treatment of FTD caused by progranulin deficiency; and PBKR03, a functional GALC gene encoding the hydrolytic enzyme galactosylceramidase for infantile Krabbe disease. The company develops PBML04 for the treatment of metachromatic leukodystrophy; PBAL05 for the treatment of amyotrophic lateral sclerosis; and other program for huntington's disease. It has a strategic research collaboration with the Trustees of the University of Pennsylvania's Gene Therapy Program; and collaboration agreement, and a development services and clinical supply agreement with Catalent Maryland, Inc. Passage Bio, Inc. was incorporated in 2017 and is headquartered in Philadelphia, Pennsylvania.

About Lexeo Therapeutics

Lexeo Therapeutics, Inc. operates as a clinical stage genetic medicine company that focuses on hereditary and acquired diseases. The company develops LX2006, which is an AAVrh10-based gene therapy candidate for the treatment of Friedreich's ataxia (FA) cardiomyopathy; LX2020, an AAVrh10-based gene therapy candidate for the treatment of plakophilin-2 arrhythmogenic cardiomyopathy; LX2021, a gene therapy candidate for the treatment of DSP cardiomyopathy associated with it; and LX2022, a gene therapy candidate for the treatment of hypertrophic cardiomyopathy, or HCM caused by TNNI3 gene. It also develops LX1001, an AAVrh10-based gene therapy candidate for the treatment of APOE4 homozygous; LX1020, a gene therapy candidate for the treatment of APOE4 homozygous; LX1021 for the treatment of APOE4 homozygotes; and LX1004 for the treatment of CLN2 Batten disease. The company was incorporated in 2017 and is based in New York, New York.