Contrasting XOMA Royalty (NASDAQ:XOMA) and Ascendis Pharma A/S (NASDAQ:ASND)

Ascendis Pharma A/S (NASDAQ:ASNDGet Free Report) and XOMA Royalty (NASDAQ:XOMAGet Free Report) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Insider and Institutional Ownership

95.9% of XOMA Royalty shares are owned by institutional investors. 40.0% of Ascendis Pharma A/S shares are owned by company insiders. Comparatively, 7.2% of XOMA Royalty shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Ascendis Pharma A/S and XOMA Royalty, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ascendis Pharma A/S 1 0 14 2 3.00
XOMA Royalty 1 1 3 0 2.40

Ascendis Pharma A/S currently has a consensus target price of $264.44, indicating a potential upside of 12.34%. XOMA Royalty has a consensus target price of $60.60, indicating a potential upside of 126.97%. Given XOMA Royalty’s higher probable upside, analysts plainly believe XOMA Royalty is more favorable than Ascendis Pharma A/S.

Volatility & Risk

Ascendis Pharma A/S has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, XOMA Royalty has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Profitability

This table compares Ascendis Pharma A/S and XOMA Royalty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ascendis Pharma A/S -35.51% N/A -20.56%
XOMA Royalty 32.28% 2.91% 1.03%

Earnings & Valuation

This table compares Ascendis Pharma A/S and XOMA Royalty”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ascendis Pharma A/S $393.54 million 37.07 -$409.12 million ($4.44) -53.02
XOMA Royalty $28.49 million 11.60 -$13.82 million $0.74 36.08

XOMA Royalty has lower revenue, but higher earnings than Ascendis Pharma A/S. Ascendis Pharma A/S is trading at a lower price-to-earnings ratio than XOMA Royalty, indicating that it is currently the more affordable of the two stocks.

Summary

XOMA Royalty beats Ascendis Pharma A/S on 9 of the 15 factors compared between the two stocks.

About Ascendis Pharma A/S

(Get Free Report)

Ascendis Pharma A/S, a biopharmaceutical company, focuses on developing therapies for unmet medical needs. It offers SKYTROFA for treating patients with growth hormone deficiency (GHD). The company is also developing a pipeline of three independent endocrinology rare disease product candidates in clinical development, as well as focuses on advancing oncology therapeutic candidates. The company was incorporated in 2006 and is headquartered in Hellerup, Denmark.

About XOMA Royalty

(Get Free Report)

XOMA Corporation operates as a biotech royalty aggregator in the United States and the Asia Pacific. It has a portfolio of economic rights to future potential milestone and royalty payments associated with partnered commercial and pre-commercial therapeutic candidates. The company also focuses on early to mid-stage clinical assets primarily in Phase 1 and 2 with commercial sales potential that are licensed to partners; and acquires milestone and royalty revenue streams on late-stage clinical or commercial assets. It has a portfolio with various assets. XOMA Corporation was incorporated in 1981 and is headquartered in Emeryville, California.

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