Analyzing Arena Pharmaceuticals (ARNA) and Intellia Therapeutics (NTLA)
Arena Pharmaceuticals (NASDAQ: ARNA) and Intellia Therapeutics (NASDAQ:NTLA) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.
Earnings & Valuation
This table compares Arena Pharmaceuticals and Intellia Therapeutics’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Arena Pharmaceuticals||$123.97 million||9.74||-$22.51 million||($0.93)||-33.06|
|Intellia Therapeutics||$16.48 million||45.16||-$31.63 million||($1.56)||-13.22|
Risk and Volatility
Arena Pharmaceuticals has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, Intellia Therapeutics has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500.
This table compares Arena Pharmaceuticals and Intellia Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
72.9% of Arena Pharmaceuticals shares are owned by institutional investors. Comparatively, 49.5% of Intellia Therapeutics shares are owned by institutional investors. 1.9% of Arena Pharmaceuticals shares are owned by insiders. Comparatively, 12.8% of Intellia Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of current ratings and recommmendations for Arena Pharmaceuticals and Intellia Therapeutics, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Arena Pharmaceuticals presently has a consensus price target of $38.83, indicating a potential upside of 26.29%. Intellia Therapeutics has a consensus price target of $30.17, indicating a potential upside of 46.30%. Given Intellia Therapeutics’ higher probable upside, analysts plainly believe Intellia Therapeutics is more favorable than Arena Pharmaceuticals.
Arena Pharmaceuticals beats Intellia Therapeutics on 8 of the 13 factors compared between the two stocks.
About Arena Pharmaceuticals
Arena Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on developing small molecule drugs across a range of therapeutic areas. The Company has three primary investigational clinical programs: etrasimod (APD334) in Phase II evaluation for ulcerative colitis, APD371 entering Phase II evaluation for the treatment of pain associated with Crohn’s disease, and ralinepag (APD811) in Phase II evaluation for pulmonary arterial hypertension (PAH). The Company’s drug, Lorcaserin, is approved for marketing in the United States and South Korea for the indication of weight management. The Company’s drug candidates in clinical development include APD334 for autoimmune diseases, ralinepag for vascular diseases and APD371 for pain. The Company’s programs under collaboration include nelotanserin for dementia-associated psychosis, temanogrel for thrombotic diseases, and an undisclosed orphan GPCR for central nervous system (CNS) indication(s).
About Intellia Therapeutics
Intellia Therapeutics, Inc. is a genome editing company. The Company is focused on developing therapeutics utilizing a biological tool known as CRISPR/Cas9. The CRISPR/Cas9 genome editing system includes two components: the Cas9 protein and the guide RNA sequence. The Cas9 protein acts like a pair of molecular scissors that initiates the natural cellular repair process to knockout, repair or insert a gene. The guide RNA sequence recognizes and directs the Cas9 to a specific target deoxyribonucleic acid (DNA) sequence. The Company’s sentinel in vivo programs focus on the use of Lipid Nanoparticle (LNPs) for delivery of the CRISPR/Cas9 complex to the liver. The Company’s division, eXtellia Therapeutics, is focused on the application of CRISPR/Cas9 genome editing in the fields of immuno-oncology and autoimmune and inflammatory diseases. The Company’s subsidiary is Intellia Securities Corp. As of September 30, 2016, the Company had not generated any revenue.
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