Contrasting Nektar Therapeutics (NKTR) & Heron Therapeutics (HRTX)

Nektar Therapeutics (NASDAQ: NKTR) and Heron Therapeutics (NASDAQ:HRTX) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Valuation & Earnings

This table compares Nektar Therapeutics and Heron Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nektar Therapeutics $165.44 million 83.76 -$153.52 million ($0.72) -122.22
Heron Therapeutics $1.28 million 1,092.65 -$173.14 million ($3.79) -5.71

Nektar Therapeutics has higher revenue and earnings than Heron Therapeutics. Nektar Therapeutics is trading at a lower price-to-earnings ratio than Heron Therapeutics, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

95.6% of Nektar Therapeutics shares are owned by institutional investors. Comparatively, 98.3% of Heron Therapeutics shares are owned by institutional investors. 6.1% of Nektar Therapeutics shares are owned by company insiders. Comparatively, 19.9% of Heron Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Nektar Therapeutics and Heron Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nektar Therapeutics -42.08% -190.68% -19.50%
Heron Therapeutics -831.89% -385.11% -141.39%

Analyst Recommendations

This is a summary of recent recommendations for Nektar Therapeutics and Heron Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nektar Therapeutics 0 1 12 0 2.92
Heron Therapeutics 0 0 10 0 3.00

Nektar Therapeutics currently has a consensus price target of $48.18, indicating a potential downside of 45.25%. Heron Therapeutics has a consensus price target of $29.90, indicating a potential upside of 38.11%. Given Heron Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Heron Therapeutics is more favorable than Nektar Therapeutics.

Summary

Nektar Therapeutics beats Heron Therapeutics on 7 of the 13 factors compared between the two stocks.

Nektar Therapeutics Company Profile

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.

Heron Therapeutics Company Profile

Heron Therapeutics, Inc. is a biotechnology company engaged in developing pharmaceutical products for patients suffering from cancer or pain. The Company’s product candidates include SUSTOL, HTX-019 and HTX-011. All of its product candidates utilize science and technology platforms, including its Biochronomer drug delivery technology. The Company’s SUSTOL (granisetron) injection, extended release is being developed for the prevention of both acute and delayed chemotherapy-induced nausea and vomiting (CINV) associated with moderately emetogenic chemotherapy (MEC) or highly emetogenic chemotherapy (HEC). HTX-019, which is an intravenous formulation of aprepitant, a neurokinin-1 (NK1) receptor antagonist, is being developed for the prevention of CINV. HTX-011, a long-acting formulation of the local anesthetic bupivacaine in a fixed-dose combination with the anti-inflammatory meloxicam, is being developed for the prevention of post-operative pain. HTX-011 is in Phase II clinical trials.

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