Jazz Pharmaceuticals (NASDAQ: JAZZ) and Anavex Life Sciences (NASDAQ:AVXL) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.
Risk and Volatility
Jazz Pharmaceuticals has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Anavex Life Sciences has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.
This table compares Jazz Pharmaceuticals and Anavex Life Sciences’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Jazz Pharmaceuticals||$1.49 billion||5.40||$396.83 million||$6.07||22.09|
|Anavex Life Sciences||N/A||N/A||-$14.73 million||($0.33)||-9.48|
Jazz Pharmaceuticals has higher revenue and earnings than Anavex Life Sciences. Anavex Life Sciences is trading at a lower price-to-earnings ratio than Jazz Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for Jazz Pharmaceuticals and Anavex Life Sciences, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Anavex Life Sciences||0||0||2||0||3.00|
Jazz Pharmaceuticals currently has a consensus price target of $182.95, indicating a potential upside of 36.44%. Anavex Life Sciences has a consensus price target of $14.50, indicating a potential upside of 363.26%. Given Anavex Life Sciences’ stronger consensus rating and higher possible upside, analysts clearly believe Anavex Life Sciences is more favorable than Jazz Pharmaceuticals.
Insider & Institutional Ownership
91.3% of Jazz Pharmaceuticals shares are owned by institutional investors. Comparatively, 23.9% of Anavex Life Sciences shares are owned by institutional investors. 4.3% of Jazz Pharmaceuticals shares are owned by company insiders. Comparatively, 11.6% of Anavex Life Sciences shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Jazz Pharmaceuticals and Anavex Life Sciences’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Anavex Life Sciences||N/A||-70.10%||-63.39%|
Jazz Pharmaceuticals beats Anavex Life Sciences on 9 of the 12 factors compared between the two stocks.
About Jazz Pharmaceuticals
Jazz Pharmaceuticals, Inc. is a specialty pharmaceutical company focusing on the development and commercialization of pharmaceutical products to meet unmet medical needs in neurology and psychiatry. As of December 31, 2009, the Company markets two products: Xyrem (sodium oxybate) for the treatment of both cataplexy and excessive daytime sleepiness in patients with narcolepsy; and Luvox CR (fluvoxamine maleate) for the treatment of both obsessive compulsive disorder and social anxiety disorder. Its marketed products and late-stage product candidate are Xyrem (sodium oxybate) oral solution, Luvox CR (fluvoxamine maleate) Extended-Release Capsules and JZP-6 (sodium oxybate). Its other product candidates in clinical development are oral tablet forms of sodium oxybate; JZP-8 (intranasal clonazepam); JZP-4 (elpetrigine), and JZP-7 (ropinirole gel).
About Anavex Life Sciences
Anavex Life Sciences Corp., is a clinical-stage biopharmaceutical company engaged in the development of drug candidates. The Company’s lead compounds include ANAVEX 2-73, ANAVEX PLUS, a combination of ANAVEX 2-73 with donepezil (Aricept), ANAVEX 19-144, ANAVEX 1-41, ANAVEX 7-1037, ANAVEX 3-71, ANAVEX 1079, ANAVEX 1519 and ANAVEX 1066 being developed to treat Alzheimer’s disease and other central nervous system (CNS) diseases. The Company’s SIGMACEPTOR Discovery Platform produced small molecule drug candidates with unique modes of action. Sigma receptors may be targets for therapeutics to combat many human diseases, including Alzheimer’s disease. When bound by the appropriate ligands, sigma receptors influence the functioning of multiple biochemical signals that are involved in the pathogenesis (origin or development) of disease.
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