Head to Head Survey: Avanir Pharmaceuticals (AVNR) versus Shire (SHPG)

Avanir Pharmaceuticals (NASDAQ: AVNR) and Shire (NASDAQ:SHPG) are both healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Insider & Institutional Ownership

20.7% of Shire shares are owned by institutional investors. 2.0% of Shire shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Avanir Pharmaceuticals and Shire’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avanir Pharmaceuticals N/A N/A N/A N/A N/A
Shire $11.40 billion 3.51 $327.40 million $5.34 24.88

Shire has higher revenue and earnings than Avanir Pharmaceuticals.

Profitability

This table compares Avanir Pharmaceuticals and Shire’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avanir Pharmaceuticals N/A N/A N/A
Shire 10.95% 14.41% 6.60%

Analyst Ratings

This is a summary of recent ratings for Avanir Pharmaceuticals and Shire, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avanir Pharmaceuticals 0 0 0 0 N/A
Shire 0 5 10 0 2.67

Shire has a consensus price target of $212.50, indicating a potential upside of 59.94%.

Dividends

Shire pays an annual dividend of $0.92 per share and has a dividend yield of 0.7%. Avanir Pharmaceuticals does not pay a dividend. Shire pays out 17.2% of its earnings in the form of a dividend.

Summary

Shire beats Avanir Pharmaceuticals on 8 of the 9 factors compared between the two stocks.

About Avanir Pharmaceuticals

AVANIR Pharmaceuticals, Inc. (AVANIR) is a pharmaceutical company focused on developing and commercializing therapeutic products for the treatment of central nervous system disorders. The Company focuses on products for the central nervous system. It also has a number of partnered programs in other therapeutic areas. Its docosanol 10% cream, sold in the United States and Canada as Abreva by its marketing partner GlaxoSmithKline Consumer Healthcare, is the only over-the-counter treatment for cold sores that has been approved by the United Sates Food and Drug Administration (FDA). In October 2010, FDA approved NUEDEXTA, is a combination of dextromethorphan/quinidine, for the treatment of pseudobulbar affect (PBA).

About Shire

Shire plc is a biotech company focused on serving people with rare diseases and other specialized conditions. The Company’s segment is engaged in research, development, licensing, manufacturing, marketing, distribution and sale of specialist medicines. It focuses its development resources on projects in various therapeutic areas (TAs), including Neuroscience, Ophthalmology, Hematology, Oncology, Immunology, Gastrointestinal (GI)/Metabolic/Endocrinology Diseases. Its Hematology products include ADVATE (Antihemophilic Factor (Recombinant)), ADYNOVATE/ADYNOVI (Antihemophilic Factor (Recombinant), PEGylated)), RIXUBIS (Coagulation Factor IX (Recombinant)), VONVENDI (von Willebrand factor (Recombinant)) and FEIBA (Anti-Inhibitor Coagulant Complex). Its Genetic Diseases products include CINRYZE (C1 esterase inhibitor (human)), FIRAZYR (icatibant), ELAPRASE (idursulfase), REPLAGAL (agalsidase alfa) and VPRIV (velaglucerase alfa).

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