Spectrum Pharmaceuticals (NASDAQ: SPPI) and Portola Pharmaceuticals (NASDAQ:PTLA) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.

Profitability

This table compares Spectrum Pharmaceuticals and Portola Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spectrum Pharmaceuticals -59.33% -30.95% -16.67%
Portola Pharmaceuticals -807.93% -145.12% -78.93%

Analyst Recommendations

This is a summary of recent ratings for Spectrum Pharmaceuticals and Portola Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spectrum Pharmaceuticals 0 0 4 0 3.00
Portola Pharmaceuticals 0 1 7 0 2.88

Spectrum Pharmaceuticals presently has a consensus target price of $11.00, indicating a potential upside of 3.58%. Portola Pharmaceuticals has a consensus target price of $65.83, indicating a potential upside of 14.89%. Given Portola Pharmaceuticals’ higher possible upside, analysts plainly believe Portola Pharmaceuticals is more favorable than Spectrum Pharmaceuticals.

Earnings and Valuation

This table compares Spectrum Pharmaceuticals and Portola Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Spectrum Pharmaceuticals $132.03 million 6.32 -$44.85 million ($0.99) -10.73
Portola Pharmaceuticals $31.93 million 103.48 -$251.01 million ($4.55) -12.59

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

Institutional & Insider Ownership

66.1% of Spectrum Pharmaceuticals shares are owned by institutional investors. Comparatively, 85.3% of Portola Pharmaceuticals shares are owned by institutional investors. 13.3% of Spectrum Pharmaceuticals shares are owned by company insiders. Comparatively, 4.9% of Portola Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Spectrum Pharmaceuticals has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, Portola Pharmaceuticals has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Summary

Spectrum Pharmaceuticals beats Portola Pharmaceuticals on 9 of the 13 factors compared between the two stocks.

About Spectrum Pharmaceuticals

Spectrum Pharmaceuticals, Inc. is a biotechnology company. The Company operates through developing and commercializing oncology and hematology drug products segment. It has a product portfolio consisting of both commercial stage and development stage products that address various cancer types. The Company has six approved oncology/hematology products that target different types of cancer, including non-Hodgkin’s lymphoma (NHL), advanced metastatic colorectal cancer (mCRC), acute lymphoblastic leukemia (ALL) and multiple myeloma (MM). It also has three drugs in mid-to-late stage development, which include ROLONTIS for chemotherapy-induced neutropenia; QAPZOLA for immediate intravesical instillation in post-transurethral resection of bladder tumors in patients with non-muscle invasive bladder cancer (NMIBC), and POZIOTINIB, a pan-human epidermal growth factor receptor (HER) inhibitor used in the treatment of patients with a range of solid tumors, including breast and lung cancer.

About Portola Pharmaceuticals

Portola Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of therapeutics in the areas of thrombosis, other hematologic disorders and inflammation for patients having limited or no approved treatment options. The Company’s two lead programs, Betrixaban and Andexanet alfa, address unmet medical needs in the area of thrombosis, or blood clots. Its third product candidate is Cerdulatinib. The Company’s Syk is a mediator of immune response in various types of immune cells. The Company has a program of selective Syk inhibitors, one of which is partnered with Ora Inc. Betrixaban is an oral once-daily inhibitor of Factor Xa in development for extended duration venous thromboembolism (VTE) prophylaxis in acute medically ill patients. Andexanet alfa is an orphan drug, which is a recombinant protein designed to reverse anticoagulant activity in patients treated with an fXa inhibitor.

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