Cardiome Pharma (NASDAQ: CRME) and Alexion Pharmaceuticals (NASDAQ:ALXN) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.
Risk and Volatility
Cardiome Pharma has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Alexion Pharmaceuticals has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.
This is a breakdown of current ratings for Cardiome Pharma and Alexion Pharmaceuticals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cardiome Pharma presently has a consensus target price of $7.25, suggesting a potential upside of 371.18%. Alexion Pharmaceuticals has a consensus target price of $154.16, suggesting a potential upside of 27.35%. Given Cardiome Pharma’s stronger consensus rating and higher probable upside, analysts clearly believe Cardiome Pharma is more favorable than Alexion Pharmaceuticals.
Valuation and Earnings
This table compares Cardiome Pharma and Alexion Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cardiome Pharma||$25.26 million||2.11||-$19.61 million||($0.84)||-1.83|
|Alexion Pharmaceuticals||$3.08 billion||8.77||$399.00 million||$2.24||54.04|
Alexion Pharmaceuticals has higher revenue and earnings than Cardiome Pharma. Cardiome Pharma is trading at a lower price-to-earnings ratio than Alexion Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
52.5% of Cardiome Pharma shares are owned by institutional investors. Comparatively, 94.3% of Alexion Pharmaceuticals shares are owned by institutional investors. 4.4% of Alexion Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Cardiome Pharma and Alexion Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Alexion Pharmaceuticals beats Cardiome Pharma on 12 of the 14 factors compared between the two stocks.
Cardiome Pharma Company Profile
Cardiome Pharma Corp. (Cardiome) is a specialty pharmaceutical company. The Company is engaged in the development and commercialization of cardiovascular therapies for heart disease. The Company’s segments are Europe and Rest of World. Cardiome has two marketed, in-hospital, cardiology products, which include BRINAVESS (vernakalant IV), approved in Europe and other territories for the conversion of onset atrial fibrillation (AF) to sinus rhythm in adults, and AGGRASTAT (tirofiban hydrochloride (HCl)), indicated for use in patients with acute coronary syndrome. Cardiome also commercializes ESMOCARD and ESMOCARD LYO (esmolol hydrochloride), a short-acting beta-blocker used to control heart rate in various cardiovascular indications, in select European markets. Cardiome has also licensed TREVYENT, a development-stage drug device combination product that is under development for pulmonary arterial hypertension, in certain regions outside the United States.
Alexion Pharmaceuticals Company Profile
Alexion Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of therapeutic products. The Company’s products include Soliris (eculizumab), Strensiq (asfotase alfa) and Kanuma (sebelipase alfa). The Company’s clinical development programs include Soliris (eculizumab), cPMP (ALXN1101), SBC-103, ALXN1210 (IV) and ALXN1210 (Subcutaneous). Its Soliris is the therapeutic approved for patients with either paroxysmal nocturnal hemoglobinuria (PNH) or hemolytic uremic syndrome (aHUS). PNH and aHUS result from chronic uncontrolled activation of the complement component of the immune system. Its Strensiq is for the treatment of patients with Hypophosphatasia (HPP). Its product, Kanuma is for the treatment of patients with Lysosomal Acid Lipase Deficiency (LAL-D). It is a recombinant form of the human LAL enzyme, which is a replacement therapy that is approved for the treatment for patients with LAL-D.
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