Summit Therapeutics PLC (NASDAQ: SMMT) and Medivation (NASDAQ:MDVN) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.

Insider & Institutional Ownership

21.9% of Summit Therapeutics PLC shares are held by institutional investors. Comparatively, 87.6% of Medivation shares are held by institutional investors. 3.5% of Medivation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Summit Therapeutics PLC has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, Medivation has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Summit Therapeutics PLC and Medivation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Summit Therapeutics PLC 0 0 5 0 3.00
Medivation 0 9 2 0 2.18

Summit Therapeutics PLC currently has a consensus price target of $27.40, suggesting a potential upside of 118.66%. Medivation has a consensus price target of $80.71, suggesting a potential downside of 0.89%. Given Summit Therapeutics PLC’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Summit Therapeutics PLC is more favorable than Medivation.

Profitability

This table compares Summit Therapeutics PLC and Medivation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Summit Therapeutics PLC -507.08% -30,092.17% -66.82%
Medivation -195.92% -225.98% -108.55%

Earnings and Valuation

This table compares Summit Therapeutics PLC and Medivation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Summit Therapeutics PLC $5.34 million 29.05 -$32.15 million N/A N/A
Medivation N/A N/A N/A ($1.10) -74.04

Medivation has higher revenue, but lower earnings than Summit Therapeutics PLC.

About Summit Therapeutics PLC

Summit Therapeutics plc is a biopharmaceutical company, which is engaged in drug development. The Company is focused on the discovery, development and commercialization of medicines for indications for which there are no existing or only inadequate therapies. It is conducting clinical programs focused on the genetic disease Duchenne muscular dystrophy (DMD) and the infectious disease Clostridium difficile infection (CDI). Its lead DMD product candidate is ezutromid, which is an orally administered small molecule. Its lead CDI product candidate is ridinilazole, which is an orally administered small molecule antibiotic. Its Ridinilazole is in Phase II clinical trials. It has conducted over three Phase I clinical trials of ezutromid. Its DMD program is based on utrophin modulation. It has received an orphan drug designation to ezutromid for the treatment of DMD. It is also developing an earlier-stage pipeline of second and future generation utrophin modulators for the treatment of DMD.

About Medivation

Medivation, Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of therapies to treat serious diseases for which there are limited treatment options. The Company, in collaboration with Astellas Pharma, Inc. (Astellas), has one commercial product, XTANDI (enzalutamide) capsules (XTANDI). XTANDI has received marketing approval in the United States, Europe and other countries across the world for the treatment of patients with metastatic castration-resistant prostate cancer (mCRPC) and in Japan for the treatment of patients with castration-resistant prostate cancer (CRPC). The Company, in collaboration with Astellas, is also conducting investigational studies of enzalutamide in prostate cancer and in advanced breast cancer. It has developed a small molecule inhibitor of the sterol regulatory element-binding protein, or SREBP, pathway which it refers to as MDV4463.

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