Nektar Therapeutics (NASDAQ: NKTR) and Ironwood Pharmaceuticals (NASDAQ:IRWD) are both mid-cap healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, earnings, valuation and dividends.
This is a summary of current ratings and recommmendations for Nektar Therapeutics and Ironwood Pharmaceuticals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Institutional and Insider Ownership
96.0% of Nektar Therapeutics shares are owned by institutional investors. 6.1% of Nektar Therapeutics shares are owned by company insiders. Comparatively, 7.6% of Ironwood Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Nektar Therapeutics has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500. Comparatively, Ironwood Pharmaceuticals has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.
This table compares Nektar Therapeutics and Ironwood Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Nektar Therapeutics and Ironwood Pharmaceuticals’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nektar Therapeutics||$165.44 million||68.14||-$153.52 million||($0.71)||-100.83|
|Ironwood Pharmaceuticals||$273.96 million||8.41||-$81.70 million||($0.96)||-16.02|
Ironwood Pharmaceuticals has higher revenue and earnings than Nektar Therapeutics. Nektar Therapeutics is trading at a lower price-to-earnings ratio than Ironwood Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Nektar Therapeutics beats Ironwood Pharmaceuticals on 9 of the 14 factors compared between the two stocks.
About Nektar Therapeutics
Nektar Therapeutics is a biopharmaceutical company that discovers and develops medicines in areas of high unmet medical need. The Company’s research and development pipeline of new investigational drugs includes treatments for cancer, auto-immune disease and chronic pain. It leverages its chemistry platform to discover and design new drug candidates. These drug candidates utilize its polymer conjugate technology platforms, which are designed to enable the development of new molecular entities that target known mechanisms of action. Its programs include Immuno-oncology (I-O), Immunology, Pain-NKTR-181 and Oncology-ONZEALD. It is developing medicines designed to directly or indirectly modulate the activity of key immune cells, such as cytotoxic T cells and Natural Killer (NK) cells, to increase their numbers and improve their function to recognize and attack cancer cells.
About Ironwood Pharmaceuticals
Ironwood Pharmaceuticals, Inc. is a biotechnology company. The Company is advancing product opportunities in areas of unmet need, including irritable bowel syndrome with constipation (IBS C), and chronic idiopathic constipation (CIC), hyperuricemia associated with uncontrolled gout, uncontrolled gastroesophageal reflux disease (uncontrolled GERD), and vascular and fibrotic diseases. It operates in human therapeutics business segment. Its product, linaclotide, is available to adult men and women suffering from IBS C or CIC in the United States under the trademarked name LINZESS, and is available to adult men and women suffering from IBS C in certain European countries under the trademarked name CONSTELLA. It is also advancing IW-3718, a gastric retentive formulation of a bile acid sequestrant with the potential to provide symptomatic relief in patients with uncontrolled GERD. Its vascular/fibrotic programs include IW-1973 and IW-1701, which targets soluble guanylate cyclase (sGC).
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