Insys Therapeutics (NASDAQ: INSY) and GW Pharmaceuticals PLC (NASDAQ:GWPH) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitabiliy, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

28.2% of Insys Therapeutics shares are held by institutional investors. Comparatively, 75.6% of GW Pharmaceuticals PLC shares are held by institutional investors. 67.9% of Insys Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Insys Therapeutics and GW Pharmaceuticals PLC’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Insys Therapeutics $217.82 million 4.04 $3.16 million ($0.08) -152.38
GW Pharmaceuticals PLC $10.07 million 289.55 -$159.69 million ($4.09) -28.17

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Insys Therapeutics and GW Pharmaceuticals PLC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Insys Therapeutics 0 2 2 0 2.50
GW Pharmaceuticals PLC 0 1 7 0 2.88

Insys Therapeutics currently has a consensus price target of $13.33, indicating a potential upside of 9.38%. GW Pharmaceuticals PLC has a consensus price target of $161.71, indicating a potential upside of 40.36%. Given GW Pharmaceuticals PLC’s stronger consensus rating and higher possible upside, analysts clearly believe GW Pharmaceuticals PLC is more favorable than Insys Therapeutics.

Volatility & Risk

Insys Therapeutics has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, GW Pharmaceuticals PLC has a beta of 2.66, indicating that its stock price is 166% more volatile than the S&P 500.

Profitability

This table compares Insys Therapeutics and GW Pharmaceuticals PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Insys Therapeutics -2.64% -0.97% -0.75%
GW Pharmaceuticals PLC -1,021.38% -22.81% -19.68%

Summary

Insys Therapeutics beats GW Pharmaceuticals PLC on 7 of the 13 factors compared between the two stocks.

About Insys Therapeutics

Insys Therapeutics, Inc. is a commercial-stage specialty pharmaceutical company. The Company develops and commercializes supportive care products. The Company’s product Subsys, is a sublingual fentanyl spray for breakthrough cancer pain (BTCP) in opioid-tolerant patients and a single-use product that delivers fentanyl, an opioid analgesic, for transmucosal absorption underneath the tongue. The Company markets Subsys through its field sales force focused on supportive care physicians in the United States. Subsys delivers a liquid fentanyl formulation in approximately 100, 200, 400, 600, 800, 1,200 and 1,600 micrograms (mcg) dosages. The Company’s lead dronabinol product candidate is Syndros, which is under review for approval at the Food and Drug Administration. In addition, the Company is evaluating sublingual spray, inhaled and intravenous formulations of dronabinol in preclinical studies.

About GW Pharmaceuticals PLC

GW Pharmaceuticals plc is a biopharmaceutical company focused on developing and commercializing therapeutics from its cannabinoid product platform in a range of disease areas. The Company’s lead cannabinoid product candidate is Epidiolex, which is a liquid formulation of pure plant-derived cannabidiol (CBD). The Company offers Sativex (nabiximols), which is indicated for the treatment of spasticity due to multiple sclerosis (MS). The Company operates through three segments: Commercial, Sativex Research and Development, and Pipeline Research and Development. The Commercial segment distributes and sells the Company’s commercial products. The Sativex Research and Development segment seeks to maximize the potential of Sativex through the development of new indications. The Pipeline Research and Development segment seeks to develop cannabinoid medications other than Sativex across a range of therapeutic areas using its cannabinoid technology platform.

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