AC Immune (NASDAQ: ACIU) and Nektar Therapeutics (NASDAQ:NKTR) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Institutional and Insider Ownership

17.1% of AC Immune shares are held by institutional investors. Comparatively, 96.0% of Nektar Therapeutics shares are held by institutional investors. 6.1% of Nektar Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares AC Immune and Nektar Therapeutics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AC Immune $23.55 million 29.66 -$7.20 million N/A N/A
Nektar Therapeutics $165.44 million 51.37 -$153.52 million ($0.71) -76.01

AC Immune has higher earnings, but lower revenue than Nektar Therapeutics.

Profitability

This table compares AC Immune and Nektar Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AC Immune N/A N/A N/A
Nektar Therapeutics -42.08% -190.68% -19.50%

Risk & Volatility

AC Immune has a beta of 2.54, indicating that its stock price is 154% more volatile than the S&P 500. Comparatively, Nektar Therapeutics has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for AC Immune and Nektar Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AC Immune 0 0 2 0 3.00
Nektar Therapeutics 0 1 12 0 2.92

AC Immune presently has a consensus target price of $21.50, suggesting a potential upside of 75.22%. Nektar Therapeutics has a consensus target price of $36.64, suggesting a potential downside of 32.12%. Given AC Immune’s stronger consensus rating and higher probable upside, analysts clearly believe AC Immune is more favorable than Nektar Therapeutics.

Summary

AC Immune beats Nektar Therapeutics on 7 of the 12 factors compared between the two stocks.

About AC Immune

AC Immune SA is a Switzerland-based company engaged in the medical biotechnology sector. It develops treatments for Alzheimer’s and other neurodegenerative diseases, such as Down syndrome, glaucoma and Parkinson’s, and focuses on producing therapeutic and diagnostic product candidates, using SupraAntigen and Morphomer technology platforms. The Company’s pipeline includes Crenezumab, ACI-24, Anti-Tau antibody, Morphomer Tau, Tau-PET imaging agent, Morphomer Abeta and Morphomer alpha-syn, among others.

About Nektar Therapeutics

Nektar Therapeutics is a biopharmaceutical company that discovers and develops medicines in areas of high unmet medical need. The Company’s research and development pipeline of new investigational drugs includes treatments for cancer, auto-immune disease and chronic pain. It leverages its chemistry platform to discover and design new drug candidates. These drug candidates utilize its polymer conjugate technology platforms, which are designed to enable the development of new molecular entities that target known mechanisms of action. Its programs include Immuno-oncology (I-O), Immunology, Pain-NKTR-181 and Oncology-ONZEALD. It is developing medicines designed to directly or indirectly modulate the activity of key immune cells, such as cytotoxic T cells and Natural Killer (NK) cells, to increase their numbers and improve their function to recognize and attack cancer cells.

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