Critical Review: Agios Pharmaceuticals (NASDAQ:AGIO) and Vectura Group (OTCMKTS:VEGPF)

Vectura Group (OTCMKTS:VEGPF) and Agios Pharmaceuticals (NASDAQ:AGIO) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitability.

Risk & Volatility

Vectura Group has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, Agios Pharmaceuticals has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Profitability

This table compares Vectura Group and Agios Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vectura Group	N/A	N/A	N/A
Agios Pharmaceuticals	-1,312.64%	-38.08%	-33.69%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Vectura Group and Agios Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vectura Group	0	0	0	0	N/A
Agios Pharmaceuticals	0	2	2	0	2.50

Agios Pharmaceuticals has a consensus price target of $33.50, indicating a potential upside of 13.44%. Given Agios Pharmaceuticals’ higher probable upside, analysts clearly believe Agios Pharmaceuticals is more favorable than Vectura Group.

Valuation and Earnings

This table compares Vectura Group and Agios Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vectura Group	$244.76 million	4.37	$157.16 million	$0.26	6.81
Agios Pharmaceuticals	$26.82 million	61.87	-$352.09 million	($6.34)	-4.66

Vectura Group has higher revenue and earnings than Agios Pharmaceuticals. Agios Pharmaceuticals is trading at a lower price-to-earnings ratio than Vectura Group, indicating that it is currently the more affordable of the two stocks.

Summary

Vectura Group beats Agios Pharmaceuticals on 7 of the 11 factors compared between the two stocks.

About Vectura Group

Vectura Group Plc engages in the provision of pharmaceutical development. Its activities include research, development, and commercialization of novel therapeutic products. The company operates through the following segments: Switzerland, United Kingdom, Germany, United States of America, and France. Vectura Group was founded by David Anthony Gough in 1997 and is headquartered in Chippenham, the United Kingdom.

About Agios Pharmaceuticals

Agios Pharmaceuticals, Inc., a biopharmaceutical company, discovers and develops medicines in the field of cellular metabolism in the United States. Its lead product includes PYRUKYND (mitapivat), an activator of wild-type and mutant pyruvate kinase (PK), enzymes for the treatment of hemolytic anemias. The company develops AG-946, a PK activator for treating lower-risk myelodysplastic syndrome and hemolytic anemias; and AG-181, a phenylalanine hydroxylase stabilizer for the treatment of phenylketonuria. Its preclinical product is siRNA for the treatment of polycythemia vera, a rare blood disorder. Agios Pharmaceuticals, Inc. was incorporated in 2007 and is headquartered in Cambridge, Massachusetts.