Gemphire Therapeutics (NASDAQ: GEMP) and GW Pharmaceuticals PLC- (NASDAQ:GWPH) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for Gemphire Therapeutics and GW Pharmaceuticals PLC-, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gemphire Therapeutics 0 0 5 0 3.00
GW Pharmaceuticals PLC- 0 1 7 0 2.88

Gemphire Therapeutics currently has a consensus target price of $24.60, suggesting a potential upside of 209.82%. GW Pharmaceuticals PLC- has a consensus target price of $152.50, suggesting a potential upside of 15.52%. Given Gemphire Therapeutics’ stronger consensus rating and higher possible upside, research analysts clearly believe Gemphire Therapeutics is more favorable than GW Pharmaceuticals PLC-.

Insider & Institutional Ownership

32.1% of Gemphire Therapeutics shares are held by institutional investors. Comparatively, 74.6% of GW Pharmaceuticals PLC- shares are held by institutional investors. 34.0% of Gemphire Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Gemphire Therapeutics and GW Pharmaceuticals PLC-‘s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gemphire Therapeutics N/A -170.04% -120.55%
GW Pharmaceuticals PLC- -1,607.85% -40.42% -34.97%

Earnings and Valuation

This table compares Gemphire Therapeutics and GW Pharmaceuticals PLC-‘s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gemphire Therapeutics N/A N/A -$14.58 million ($3.38) -2.35
GW Pharmaceuticals PLC- $11.00 million 333.27 -$166.90 million ($6.72) -19.64

Gemphire Therapeutics has higher earnings, but lower revenue than GW Pharmaceuticals PLC-. GW Pharmaceuticals PLC- is trading at a lower price-to-earnings ratio than Gemphire Therapeutics, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Gemphire Therapeutics has a beta of 3.07, indicating that its share price is 207% more volatile than the S&P 500. Comparatively, GW Pharmaceuticals PLC- has a beta of 2.65, indicating that its share price is 165% more volatile than the S&P 500.

Summary

Gemphire Therapeutics beats GW Pharmaceuticals PLC- on 8 of the 13 factors compared between the two stocks.

About Gemphire Therapeutics

Gemphire Therapeutics Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in the development and commercialization of therapeutics to treat cardiovascular and metabolic diseases. It is developing its product candidate, gemcabene (CI-1027), which is a once-daily, oral therapy for patients who are unable to achieve normal levels of low-density lipoprotein cholesterol (LDL-C) or triglycerides with approved therapies, primarily statin therapy. Gemcabene is liver-directed and inhibits apolipoprotein C-III (apoC-III) protein in the liver and may inhibit acetyl-CoA carboxylase (ACC) in the liver. Gemcabene blocks the overall production of hepatic triglycerides and cholesterol. Gemcabene has been tested as monotherapy and in combination with statins and other drugs in over 895 subjects, across approximately 18 Phase I and Phase II clinical trials. Gemcabene is used as an adjunctive therapy to reduce LDL-C, high-sensitivity C-reactive protein (hsCRP) and triglycerides.

About GW Pharmaceuticals PLC-

GW Pharmaceuticals plc is a biopharmaceutical company focused on developing and commercializing therapeutics from its cannabinoid product platform in a range of disease areas. The Company’s lead cannabinoid product candidate is Epidiolex, which is a liquid formulation of pure plant-derived cannabidiol (CBD). The Company offers Sativex (nabiximols), which is indicated for the treatment of spasticity due to multiple sclerosis (MS). The Company operates through three segments: Commercial, Sativex Research and Development, and Pipeline Research and Development. The Commercial segment distributes and sells the Company’s commercial products. The Sativex Research and Development segment seeks to maximize the potential of Sativex through the development of new indications. The Pipeline Research and Development segment seeks to develop cannabinoid medications other than Sativex across a range of therapeutic areas using its cannabinoid technology platform.

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