AbbVie (NYSE: ABBV) and Aimmune Therapeutics (NASDAQ:AIMT) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Insider & Institutional Ownership

68.3% of AbbVie shares are held by institutional investors. Comparatively, 72.9% of Aimmune Therapeutics shares are held by institutional investors. 0.2% of AbbVie shares are held by insiders. Comparatively, 24.6% of Aimmune Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares AbbVie and Aimmune Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AbbVie 24.77% 150.27% 12.52%
Aimmune Therapeutics N/A -44.53% -42.00%

Volatility & Risk

AbbVie has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, Aimmune Therapeutics has a beta of -1.09, meaning that its stock price is 209% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for AbbVie and Aimmune Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AbbVie 0 7 5 1 2.54
Aimmune Therapeutics 0 0 2 0 3.00

AbbVie presently has a consensus target price of $75.83, indicating a potential upside of 0.55%. Aimmune Therapeutics has a consensus target price of $36.67, indicating a potential upside of 71.42%. Given Aimmune Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Aimmune Therapeutics is more favorable than AbbVie.

Dividends

AbbVie pays an annual dividend of $2.56 per share and has a dividend yield of 3.4%. Aimmune Therapeutics does not pay a dividend. AbbVie pays out 62.9% of its earnings in the form of a dividend. Aimmune Therapeutics has increased its dividend for 44 consecutive years.

Earnings & Valuation

This table compares AbbVie and Aimmune Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AbbVie $26.71 billion 4.50 $11.57 billion $4.07 18.53
Aimmune Therapeutics N/A N/A -$106.22 million ($2.25) -9.51

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

Summary

AbbVie beats Aimmune Therapeutics on 10 of the 16 factors compared between the two stocks.

About AbbVie

AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. The Company is engaged in the discovery, development, manufacture and sale of a range of pharmaceutical products. Its products are focused on treating conditions, such as chronic autoimmune diseases in rheumatology, gastroenterology and dermatology; oncology, including blood cancers; virology, including hepatitis C virus (HCV) and human immunodeficiency virus (HIV); neurological disorders, such as Parkinson’s disease and multiple sclerosis; metabolic diseases, including thyroid disease and complications associated with cystic fibrosis, and other serious health conditions. It offers products in various categories, including HUMIRA (adalimumab), Oncology products, Virology Products, Additional Virology products, Metabolics/Hormones products, Endocrinology products and other products, which include Duopa and Duodopa (carbidopa and levodopa), Anesthesia products and ZINBRYTA (daclizumab).

About Aimmune Therapeutics

Aimmune Therapeutics, Inc. is a clinical-stage biopharmaceutical company developing a therapeutic approach, including the development of product candidates, for the treatment of peanut and other food allergies. The Company’s therapeutic approach, which it refers to as Characterized Oral Desensitization Immunotherapy (CODIT), is a system designed to desensitize patients to food allergens using characterized biologic products, defined treatment protocols and support services. The Company’s lead CODIT product candidate, AR101, is an investigational biologic for the treatment of patients with peanut allergy. The Company has initiated Peanut Allergy Oral Immunotherapy Study of AR101 for Desensitization in Children and Adults (PALISADE), its Phase III registration trial of AR101. The Company is in the process of evaluating additional delivery forms for AR101 for the maintenance phase.

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