BioMarin Pharmaceutical (NASDAQ: BMRN) and Mediwound (NASDAQ:MDWD) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Profitability

This table compares BioMarin Pharmaceutical and Mediwound’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BioMarin Pharmaceutical -12.45% -4.60% -3.09%
Mediwound -904.26% -246.58% -39.43%

Institutional and Insider Ownership

99.3% of BioMarin Pharmaceutical shares are owned by institutional investors. Comparatively, 29.5% of Mediwound shares are owned by institutional investors. 1.9% of BioMarin Pharmaceutical shares are owned by 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.

Earnings and Valuation

This table compares BioMarin Pharmaceutical and Mediwound’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BioMarin Pharmaceutical $1.12 billion 13.85 -$630.21 million ($0.90) -97.90
Mediwound $1.56 million 81.50 -$18.88 million ($0.98) -4.80

Mediwound has lower revenue, but higher earnings than BioMarin Pharmaceutical. BioMarin Pharmaceutical is trading at a lower price-to-earnings ratio than Mediwound, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

BioMarin Pharmaceutical has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500. Comparatively, Mediwound has a beta of -0.01, suggesting that its share price is 101% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for BioMarin Pharmaceutical and Mediwound, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BioMarin Pharmaceutical 0 6 16 0 2.73
Mediwound 0 0 5 0 3.00

BioMarin Pharmaceutical currently has a consensus price target of $114.55, indicating a potential upside of 30.01%. Mediwound has a consensus price target of $9.80, indicating a potential upside of 108.51%. Given Mediwound’s stronger consensus rating and higher possible upside, analysts plainly believe Mediwound is more favorable than BioMarin Pharmaceutical.

Summary

BioMarin Pharmaceutical beats Mediwound on 9 of the 13 factors compared between the two stocks.

About BioMarin Pharmaceutical

BioMarin Pharmaceutical Inc. is a biotechnology company. The Company develops and commercializes pharmaceuticals for various diseases and medical conditions. As of December 31, 2016, the Company’s therapy portfolio consisted of five products, and multiple clinical and pre-clinical product candidates. Its commercial products include Aldurazyme (laronidase) for Mucopolysaccharidosis I (MPS I), Firdapse (amifampridine phosphate) for Lambert Eaton Myasthenic Syndrome (LEMS), Kuvan (sapropterin dihydrochloride) for phenylketonuria (PKU), Naglazyme (galsulfase) for Mucopolysaccharidosis VI (MPS VI) and Vimizim (elosulfase alpha) for Mucopolysaccharidosis IV Type A (MPS IV A). The Company is conducting clinical trials on various product candidates for the treatment of various diseases. Its clinical product candidates include Brineura, pegvaliase, vosoritide, BMN 270 and BMN 250.

About Mediwound

MediWound Ltd. is a biopharmaceutical company. The Company focuses on developing, manufacturing and commercializing therapeutics products in the fields of severe burns, chronic and other hard-to-heal wounds, connective tissue disorders and other indications. The Company’s product, NexoBrid, is indicated for the removal of dead or damaged tissue, known as eschar, in adults with deep partial- and full-thickness thermal burns, also referred to as severe burns. The Company sells NexoBrid in Europe and Israel. NexoBrid is a topically-applied product that removes eschar in four hours without harming the surrounding healthy tissues. Its product, EscharEx, is a topical biological drug, which is being developed for debridement of chronic and other hard-to-heal wounds. NexoBrid and EscharEx are based on its proteolytic enzyme technology. The Company is also developing an injectable product based on its proteolytic enzyme technology for connective tissue pathologies and indications.

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