Aimmune Therapeutics (NASDAQ: AIMT) and Mallinckrodt PLC (NYSE:MNK) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Earnings & Valuation

This table compares Aimmune Therapeutics and Mallinckrodt PLC’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Aimmune Therapeutics N/A N/A -$106.22 million ($2.25) -11.40
Mallinckrodt PLC $3.27 billion 0.98 $666.60 million $4.10 7.91

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

Analyst Ratings

This is a summary of current ratings and price targets for Aimmune Therapeutics and Mallinckrodt PLC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aimmune Therapeutics 0 0 1 0 3.00
Mallinckrodt PLC 0 4 13 0 2.76

Aimmune Therapeutics presently has a consensus price target of $40.00, indicating a potential upside of 55.88%. Mallinckrodt PLC has a consensus price target of $59.97, indicating a potential upside of 84.98%. Given Mallinckrodt PLC’s higher probable upside, analysts clearly believe Mallinckrodt PLC is more favorable than Aimmune Therapeutics.

Profitability

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

Net Margins Return on Equity Return on Assets
Aimmune Therapeutics N/A -44.53% -42.00%
Mallinckrodt PLC 12.64% 15.28% 5.20%

Volatility and Risk

Aimmune Therapeutics has a beta of -1.03, indicating that its share price is 203% less volatile than the S&P 500. Comparatively, Mallinckrodt PLC has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Insider and Institutional Ownership

72.9% of Aimmune Therapeutics shares are held by institutional investors. Comparatively, 97.4% of Mallinckrodt PLC shares are held by institutional investors. 24.6% of Aimmune Therapeutics shares are held by company insiders. Comparatively, 0.8% of Mallinckrodt PLC shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Mallinckrodt PLC beats Aimmune Therapeutics on 10 of the 12 factors compared between the two stocks.

About Aimmune Therapeutics

Aimmune Therapeutics, Inc. is a clinical-stage biopharmaceutical company developing a therapeutic approach, including the development of product candidates, for the treatment of peanut and other food allergies. The Company’s therapeutic approach, which it refers to as Characterized Oral Desensitization Immunotherapy (CODIT), is a system designed to desensitize patients to food allergens using characterized biologic products, defined treatment protocols and support services. The Company’s lead CODIT product candidate, AR101, is an investigational biologic for the treatment of patients with peanut allergy. The Company has initiated Peanut Allergy Oral Immunotherapy Study of AR101 for Desensitization in Children and Adults (PALISADE), its Phase III registration trial of AR101. The Company is in the process of evaluating additional delivery forms for AR101 for the maintenance phase.

About Mallinckrodt PLC

Mallinckrodt public limited company develops, manufactures, markets and distributes branded and generic specialty pharmaceutical products and therapies. The Company focuses on various therapeutic areas, such as autoimmune and rare disease specialty areas, including neurology, rheumatology, nephrology, ophthalmology and pulmonology; immunotherapy and neonatal critical care respiratory therapies; analgesics and hemostasis products, and central nervous system drugs. Its segments include Specialty Brands and Specialty Generics. The Specialty Brands segment produces and markets branded pharmaceutical products and therapies. The Specialty Generics segment produces and markets specialty generic pharmaceuticals and active pharmaceutical ingredient (API) consisting of biologics, medicinal opioids, synthetic controlled substances, acetaminophen and other active ingredients. Its product portfolio includes Acthar, Inomax, Ofirmev, Therakos immunotherapy, Hemostasis products and StrataGraft.

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