Aquinox Pharmaceuticals (AQXP) versus Valeant Pharmaceuticals Intl (VRX) Critical Survey

Aquinox Pharmaceuticals (NASDAQ: AQXP) and Valeant Pharmaceuticals Intl (NYSE:VRX) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.

Risk & Volatility

Aquinox Pharmaceuticals has a beta of -16.96, meaning that its stock price is 1,796% less volatile than the S&P 500. Comparatively, Valeant Pharmaceuticals Intl has a beta of -0.22, meaning that its stock price is 122% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Aquinox Pharmaceuticals and Valeant Pharmaceuticals Intl, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aquinox Pharmaceuticals 0 0 3 0 3.00
Valeant Pharmaceuticals Intl 4 9 6 0 2.11

Aquinox Pharmaceuticals presently has a consensus price target of $25.00, suggesting a potential upside of 112.77%. Valeant Pharmaceuticals Intl has a consensus price target of $18.50, suggesting a potential downside of 14.03%. Given Aquinox Pharmaceuticals’ stronger consensus rating and higher probable upside, research analysts plainly believe Aquinox Pharmaceuticals is more favorable than Valeant Pharmaceuticals Intl.

Insider and Institutional Ownership

96.3% of Aquinox Pharmaceuticals shares are held by institutional investors. Comparatively, 49.5% of Valeant Pharmaceuticals Intl shares are held by institutional investors. 2.7% of Aquinox Pharmaceuticals shares are held by insiders. Comparatively, 5.9% of Valeant Pharmaceuticals Intl shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Aquinox Pharmaceuticals and Valeant Pharmaceuticals Intl’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aquinox Pharmaceuticals N/A N/A -$37.00 million ($1.93) -6.09
Valeant Pharmaceuticals Intl $9.67 billion 0.78 -$2.41 billion $3.90 5.52

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

Profitability

This table compares Aquinox Pharmaceuticals and Valeant Pharmaceuticals Intl’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aquinox Pharmaceuticals N/A -34.72% -32.69%
Valeant Pharmaceuticals Intl 15.35% 51.56% 5.14%

Summary

Valeant Pharmaceuticals Intl beats Aquinox Pharmaceuticals on 9 of the 13 factors compared between the two stocks.

Aquinox Pharmaceuticals Company Profile

Aquinox Pharmaceuticals, Inc. is a clinical-stage pharmaceutical company discovering and developing targeted therapeutics in disease areas of inflammation and immuno-oncology. The Company’s primary focus is anti-inflammatory product candidates targeting the Src Homology 2 (SH2)-containing inositol-5-phosphatase 1 (SHIP1) enzyme, which is a regulator of a cellular signaling pathway in immune cells, known as the phosphatidylinositol-4,5-bisphosphate 3-kinase (PI3K) pathway. Its product candidate, AQX-1125, is a small molecule activator of SHIP1 suitable for oral, once daily dosing. The Company is developing AQX-1125 as a treatment in interstitial cystitis/bladder pain syndrome (IC/BPS), a chronic inflammatory disease of the bladder. AQX-1125 is a SHIP1 activator that has demonstrated preliminary safety, anti-inflammatory potential and drug properties in multiple preclinical studies.

Valeant Pharmaceuticals Intl Company Profile

Valeant Pharmaceuticals International, Inc. is a pharmaceutical and medical device company. The Company is engaged in developing and marketing a range of branded, generic and branded generic pharmaceuticals, over-the-counter (OTC) products, and medical devices (contact lenses, intraocular lenses, ophthalmic surgical equipment, and aesthetics devices). It operates through two segments: Developed markets and Emerging markets. In the Developed Markets segment, it focuses on the areas of dermatology, neurology, gastrointestinal disorders, and eye health therapeutic classes. In the Emerging Markets segment, it focuses on primarily on branded generics, OTC products and medical devices. Its pharmaceutical products include Xifaxan, Solodyn and Glumetza. Its OTC products include PreserVision, Biotrue and Boston. Its other generic products include Latanoprost and Metronidazole. Its ophthalmic surgical products include intraocular lenses, such as Akreos, enVista, Crystalens and Trulign.

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