Albany Molecular Research (NASDAQ: AMRI) and Ionis Pharmaceuticals (NASDAQ:IONS) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Risk and Volatility

Albany Molecular Research has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Ionis Pharmaceuticals has a beta of 2.86, suggesting that its stock price is 186% more volatile than the S&P 500.

Institutional and Insider Ownership

72.1% of Albany Molecular Research shares are held by institutional investors. Comparatively, 91.4% of Ionis Pharmaceuticals shares are held by institutional investors. 14.5% of Albany Molecular Research shares are held by company insiders. Comparatively, 2.1% of Ionis Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Albany Molecular Research and Ionis Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Albany Molecular Research 0 4 0 0 2.00
Ionis Pharmaceuticals 2 5 6 0 2.31

Albany Molecular Research currently has a consensus target price of $18.00, suggesting a potential downside of 17.20%. Ionis Pharmaceuticals has a consensus target price of $50.92, suggesting a potential downside of 4.33%. Given Ionis Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Ionis Pharmaceuticals is more favorable than Albany Molecular Research.

Valuation & Earnings

This table compares Albany Molecular Research and Ionis Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Albany Molecular Research N/A N/A N/A ($1.43) -15.20
Ionis Pharmaceuticals $346.62 million 19.16 -$86.55 million $0.14 380.14

Albany Molecular Research has higher earnings, but lower revenue than Ionis Pharmaceuticals. Albany Molecular Research is trading at a lower price-to-earnings ratio than Ionis Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Albany Molecular Research and Ionis Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Albany Molecular Research -5.93% -13.39% -3.42%
Ionis Pharmaceuticals 3.46% 7.50% 1.58%

Summary

Ionis Pharmaceuticals beats Albany Molecular Research on 11 of the 12 factors compared between the two stocks.

Albany Molecular Research Company Profile

Albany Molecular Research, Inc. is a contract research and manufacturing company. The Company operates through Discovery and Development Services (DDS), Active Pharmaceutical Ingredients (API), Drug Product (DP) and Fine Chemicals (FC) segments. The DDS segment includes activities, such as drug lead discovery, optimization, drug development and small scale commercial manufacturing. The API segment includes pilot to commercial scale manufacturing of active pharmaceutical ingredients and intermediates. The DP segment includes pre-formulation, formulation and process development through commercial scale production of complex liquid-filled and lyophilized sterile injectable products and ophthalmic formulations. The FC segment includes lab to commercial scale synthesis of reagents and diverse compounds. It supplies a range of services and technologies supporting the discovery and development of pharmaceutical products, the manufacturing of API and drug product for new and generic drugs.

Ionis Pharmaceuticals Company Profile

Ionis Pharmaceuticals, Inc. is engaged in discovering and developing ribonucleic acid (RNA)-targeted therapeutics. The Company, using its drug discovery platform, has developed a pipeline of drugs for patients with unmet medical needs. The Company’s segments include Ionis Core and Akcea Therapeutics. In the Ionis Core segment, the Company is engaged in exploiting a drug discovery platform to generate a pipeline of drugs for the Company and its partners. The Akcea Therapeutics segment includes the operations of the Company’s subsidiary, Akcea Therapeutics, Inc. (Akcea Therapeutics). Akcea Therapeutics is focused on developing and commercializing volanesorsen and other clinical-stage drugs for serious cardiometabolic diseases caused by lipid disorders. The Company is developing volanesorsen to treat two severe and rare, genetically defined diseases, familial chylomicronemia (FCS) and familial partial lipodystrophy (FPL). The Company offers SPINRAZA, a Generation 2.0+ antisense drug.

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