Vanda Pharmaceuticals (NASDAQ: VNDA) and Achaogen (NASDAQ:AKAO) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Insider & Institutional Ownership
88.5% of Vanda Pharmaceuticals shares are held by institutional investors. Comparatively, 85.8% of Achaogen shares are held by institutional investors. 7.6% of Vanda Pharmaceuticals shares are held by insiders. Comparatively, 8.4% of Achaogen shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Vanda Pharmaceuticals and Achaogen’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Vanda Pharmaceuticals and Achaogen’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Vanda Pharmaceuticals||$146.02 million||4.42||-$18.01 million||($0.31)||-46.29|
|Achaogen||$41.77 million||11.21||-$71.22 million||($3.60)||-3.07|
Vanda Pharmaceuticals has higher revenue and earnings than Achaogen. Vanda Pharmaceuticals is trading at a lower price-to-earnings ratio than Achaogen, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Vanda Pharmaceuticals and Achaogen, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Vanda Pharmaceuticals currently has a consensus price target of $22.20, suggesting a potential upside of 54.70%. Achaogen has a consensus price target of $25.63, suggesting a potential upside of 131.90%. Given Achaogen’s higher possible upside, analysts plainly believe Achaogen is more favorable than Vanda Pharmaceuticals.
Risk & Volatility
Vanda Pharmaceuticals has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Achaogen has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.
Vanda Pharmaceuticals beats Achaogen on 8 of the 13 factors compared between the two stocks.
About Vanda Pharmaceuticals
Vanda Pharmaceuticals Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of therapies to address unmet medical needs. Its product portfolio includes HETLIOZ (tasimelteon), Fanapt (iloperidone), Tradipitant (VLY-686), Trichostatin A and AQW051. It offers HETLIOZ for the treatment of Non-24-Hour Sleep-Wake Disorder (Non-24). HETLIOZ is in clinical development for the treatment of Pediatric Non-24, Jet Lag Disorder and Smith-Magenis Syndrome. It offers Fanapt for the treatment of schizophrenia. Fanapt has potential utility in various other disorders. Tradipitant is a small molecule neurokinin-1 receptor (NK-1R) antagonist, which is in clinical development for the treatment of chronic pruritus in atopic dermatitis. Trichostatin A is a small molecule histone deacetylase (HDAC) inhibitor. AQW051 is a Phase II alpha-7 nicotinic acetylcholine receptor partial agonist. AQW051 is indicated for the treatment of central nervous system disorders.
Achaogen, Inc. is a late-stage biopharmaceutical company. The Company is engaged in the discovery, development and commercialization of antibacterial treatments against multi-drug resistant (MDR) gram-negative infections. The Company is involved in researching and developing plazomicin, its lead product candidate, for the treatment of serious bacterial infections, including complicated urinary tract infection (cUTI), blood stream infections and other infections due to MDR Enterobacteriaceae, including carbapenem-resistant Enterobacteriaceae (CRE). Plazomicin is an intravenous aminoglycoside antibiotic. The Company has developed plazomicin by chemically modifying sisomicin, a naturally occurring aminoglycoside, in order to overcome common aminoglycoside resistance mechanisms. The Company has a portfolio of small molecule and antibody programs. The Company’s Early Development programs include C-Scape and LpxC.
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