Teligent (NASDAQ: TLGT) and Aquinox Pharmaceuticals (NASDAQ:AQXP) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitabiliy and institutional ownership.

Valuation and Earnings

This table compares Teligent and Aquinox Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Teligent $71.12 million 6.41 $9.15 million ($0.19) -45.05
Aquinox Pharmaceuticals N/A N/A N/A ($1.93) -7.72

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Teligent and Aquinox Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teligent 0 1 1 0 2.50
Aquinox Pharmaceuticals 0 1 4 0 2.80

Teligent currently has a consensus target price of $9.50, suggesting a potential upside of 10.98%. Aquinox Pharmaceuticals has a consensus target price of $20.75, suggesting a potential upside of 39.26%. Given Aquinox Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Aquinox Pharmaceuticals is more favorable than Teligent.

Volatility & Risk

Teligent has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500. Comparatively, Aquinox Pharmaceuticals has a beta of -17.03, suggesting that its stock price is 1,803% less volatile than the S&P 500.

Profitability

This table compares Teligent and Aquinox Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teligent -14.35% 5.43% 1.74%
Aquinox Pharmaceuticals N/A -29.19% -27.46%

Institutional & Insider Ownership

63.6% of Teligent shares are held by institutional investors. Comparatively, 98.3% of Aquinox Pharmaceuticals shares are held by institutional investors. 22.6% of Teligent shares are held by company insiders. Comparatively, 2.7% of Aquinox Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Teligent beats Aquinox Pharmaceuticals on 6 of the 11 factors compared between the two stocks.

Teligent Company Profile

Teligent, Inc. is a specialty generic pharmaceutical company. Under the Company’s own label, it markets and sells generic injectable pharmaceutical products in the United States and Canada. In the United States it marketed 16 generic topical pharmaceutical products and four branded generic pharmaceutical products, as of December 31, 2016. It provides development, formulation and manufacturing services to the pharmaceutical, over-the-counter (OTC) and cosmetic industries. It focuses on developing, manufacturing and marketing a portfolio of generic pharmaceutical products under its own label in topical, injectable, complex and ophthalmic dosage forms, and managing its contract manufacturing and formulation services business. Its pipeline included 34 Abbreviated New Drug Application(ANDAs) filed with the United States Food and Drug Administration (FDA) for additional pharmaceutical products, as of December 31, 2016.

Aquinox Pharmaceuticals Company Profile

Aquinox Pharmaceuticals, Inc. is a clinical-stage pharmaceutical company discovering and developing targeted therapeutics in disease areas of inflammation and immuno-oncology. The Company’s primary focus is anti-inflammatory product candidates targeting the Src Homology 2 (SH2)-containing inositol-5-phosphatase 1 (SHIP1) enzyme, which is a regulator of a cellular signaling pathway in immune cells, known as the phosphatidylinositol-4,5-bisphosphate 3-kinase (PI3K) pathway. Its product candidate, AQX-1125, is a small molecule activator of SHIP1 suitable for oral, once daily dosing. The Company is developing AQX-1125 as a treatment in interstitial cystitis/bladder pain syndrome (IC/BPS), a chronic inflammatory disease of the bladder. AQX-1125 is a SHIP1 activator that has demonstrated preliminary safety, anti-inflammatory potential and drug properties in multiple preclinical studies.

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