Redhill Biopharma (NASDAQ: RDHL) and AveXis (NASDAQ:AVXS) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Redhill Biopharma and AveXis, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Redhill Biopharma 0 0 3 0 3.00
AveXis 2 2 12 0 2.63

Redhill Biopharma presently has a consensus target price of $28.33, suggesting a potential upside of 218.35%. AveXis has a consensus target price of $102.73, suggesting a potential upside of 6.86%. Given Redhill Biopharma’s stronger consensus rating and higher probable upside, research analysts plainly believe Redhill Biopharma is more favorable than AveXis.

Valuation & Earnings

This table compares Redhill Biopharma and AveXis’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Redhill Biopharma $583,000.00 262.01 -$41.03 million ($2.50) -3.56
AveXis N/A N/A -$134.28 million ($4.93) -19.50

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

Profitability

This table compares Redhill Biopharma and AveXis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Redhill Biopharma N/A -70.00% -57.98%
AveXis N/A -45.63% -42.21%

Risk and Volatility

Redhill Biopharma has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, AveXis has a beta of 3.11, suggesting that its stock price is 211% more volatile than the S&P 500.

Institutional & Insider Ownership

11.0% of Redhill Biopharma shares are owned by institutional investors. Comparatively, 94.7% of AveXis shares are owned by institutional investors. 18.6% of AveXis shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

AveXis beats Redhill Biopharma on 6 of the 11 factors compared between the two stocks.

Redhill Biopharma Company Profile

Redhill Biopharma Ltd, is an Israel-based specialty biopharmaceutical company. The Company focuses on the development and commercialization of late clinical-stage, proprietary, orally-administered, small molecule drugs for the treatment of gastrointestinal and inflammatory diseases and cancer. It offers the following gastrointestinal products in the United States: Donnatal, a prescription oral adjunctive drug used in the treatment of Irritable Bowel Syndrome (IBS) and acute enterocolitis, as well as EnteraGam, a medical food intended for the dietary management, under medical supervision, of chronic diarrhea and loose stools. Its clinical-stage pipeline includes: TALICIA (RHB-105), an oral combination therapy for the treatment of Helicobacter pylori infection; RHB-104, an oral combination therapy for the treatment of Crohn’s disease; BEKINDA (RHB-102), a once-daily oral pill formulation of ondansetron; RHB-106; YELIVA (ABC294640); MESUPRON, and RIZAPORT (RHB-103).

AveXis Company Profile

AveXis, Inc. is a clinical-stage gene therapy company. The Company operates through the developing and commercializing gene therapy treatments for patients suffering from neurological genetic diseases segment. The Company’s product candidate, AVXS-101, is its gene therapy product candidate that is in a Phase I clinical trial for the treatment of spinal muscular atrophy (SMA) Type 1, which is a genetic disorder characterized by motor neuron loss and associated muscle deterioration. The survival motor neuron (SMN) is a protein for normal motor neuron signaling and function. Patients with SMA Type 1 either have experienced a deletion of their SMN1 genes, which prevents them from producing adequate levels of functional SMN protein, or carry a mutation in their SMN1 gene. AVXS-101 is designed to deliver a functional human SMN gene into the nuclei of motor neurons that then generates an increase in SMN protein levels.

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