Alkermes (NASDAQ: ALKS) and Corvus Pharmaceuticals (NASDAQ:CRVS) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.
Volatility & Risk
Alkermes has a beta of 2.13, meaning that its stock price is 113% more volatile than the S&P 500. Comparatively, Corvus Pharmaceuticals has a beta of -1.51, meaning that its stock price is 251% less volatile than the S&P 500.
This table compares Alkermes and Corvus Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and price targets for Alkermes and Corvus Pharmaceuticals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Alkermes currently has a consensus price target of $64.50, suggesting a potential upside of 13.10%. Corvus Pharmaceuticals has a consensus price target of $21.67, suggesting a potential upside of 117.97%. Given Corvus Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Corvus Pharmaceuticals is more favorable than Alkermes.
Earnings & Valuation
This table compares Alkermes and Corvus Pharmaceuticals’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alkermes||$745.69 million||11.76||-$208.44 million||($1.11)||-51.38|
|Corvus Pharmaceuticals||N/A||N/A||-$36.37 million||($2.69)||-3.70|
Corvus Pharmaceuticals has lower revenue, but higher earnings than Alkermes. Alkermes is trading at a lower price-to-earnings ratio than Corvus Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
99.7% of Alkermes shares are held by institutional investors. Comparatively, 83.4% of Corvus Pharmaceuticals shares are held by institutional investors. 5.3% of Alkermes shares are held by company insiders. Comparatively, 46.4% of Corvus Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Alkermes beats Corvus Pharmaceuticals on 7 of the 13 factors compared between the two stocks.
Alkermes plc is a biopharmaceutical company. The Company is engaged in the researching, developing and commercializing pharmaceutical products that are designed to address medical needs of patients in therapeutic areas. The Company has a portfolio of marketed drug products and a clinical pipeline of products that address central nervous system (CNS) disorders, such as schizophrenia, depression, addiction and multiple sclerosis (MS). The Company’s products include ARISTADA, VIVITROL, INVEGA SUSTENNA, XEPLION, INVEGA TRINZA, TREVICTA, RISPERDAL CONSTA, AMPYRA, FAMPYRA, BYDUREON, Aripiprazole lauroxil, ALKS 5461, ALKS 3831, ALKS 8700, ALKS 6428, ALKS 4230 and ALKS 7119. The Company’s product platforms include injectable extended-release microsphere technology, LinkeRx technology, NanoCrystal technology and oral controlled release (OCR) technology. ARISTADA is an extended-release intramuscular injectable suspension for the treatment of schizophrenia.
About Corvus Pharmaceuticals
Corvus Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on the development and commercialization of immuno-oncology therapies. The Company is developing drugs and antibodies that block crucial immune checkpoints and reprogram immune T-cells. The Company has a pipeline of four immuno-oncology programs, three of which focus on the adenosine-cancer axis to modulate an immune response. The Company’s lead product candidate, CPI-444, is an oral, small molecule antagonist of the A2A receptor for adenosine, an immune checkpoint. Its other products include adenosine production inhibitor (a monoclonal anti-CD73 antibody); adenosine A2B antagonist, and interleukin-2 (IL-2)-inducible T cell kinase (ITK) inhibitors. As of September 30, 2016, the Company had not generated any revenue.
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