PTC Therapeutics (NASDAQ: PTCT) and Keryx Biopharmaceuticals (NASDAQ:KERX) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Insider & Institutional Ownership

81.4% of PTC Therapeutics shares are held by institutional investors. Comparatively, 65.2% of Keryx Biopharmaceuticals shares are held by institutional investors. 8.1% of PTC Therapeutics shares are held by insiders. Comparatively, 3.1% of Keryx Biopharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

PTC Therapeutics has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Comparatively, Keryx Biopharmaceuticals has a beta of 5.24, suggesting that its stock price is 424% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for PTC Therapeutics and Keryx Biopharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PTC Therapeutics 0 8 2 0 2.20
Keryx Biopharmaceuticals 0 4 2 0 2.33

PTC Therapeutics presently has a consensus target price of $15.44, suggesting a potential downside of 28.53%. Keryx Biopharmaceuticals has a consensus target price of $7.50, suggesting a potential downside of 1.19%. Given Keryx Biopharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Keryx Biopharmaceuticals is more favorable than PTC Therapeutics.

Earnings and Valuation

This table compares PTC Therapeutics and Keryx Biopharmaceuticals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PTC Therapeutics $122.69 million 7.28 -$90.43 million ($3.10) -6.97
Keryx Biopharmaceuticals $42.83 million 21.04 -$121.75 million ($1.69) -4.49

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

Profitability

This table compares PTC Therapeutics and Keryx Biopharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PTC Therapeutics -88.43% -81.84% -36.49%
Keryx Biopharmaceuticals -431.89% -2,902.87% -78.46%

Summary

PTC Therapeutics beats Keryx Biopharmaceuticals on 7 of the 12 factors compared between the two stocks.

About PTC Therapeutics

PTC Therapeutics, Inc. is a biopharmaceutical company. The Company is focused on the discovery, development and commercialization of medicines using its expertise in ribonucleic acid (RNA) biology. Its product pipeline includes Ataluren (Translarna), PTC596 and RG7916. Its product candidate, ataluren, is an orally administered small-molecule compound for the treatment of patients with genetic disorders due to a nonsense mutation. Ataluren is in clinical development for the treatment of Duchenne muscular dystrophy caused by a nonsense mutation (nmDMD) and cystic fibrosis caused by a nonsense mutation (nmCF). PTC596 is an orally active small molecule that targets tumor stem cell populations by reducing the function, activity and amount of BMI1. RG7916 is an investigational oral therapeutic, which is in two clinical studies: SUNFISH, a trial in childhood onset (Type II/III) spinal muscular atrophy (SMA) patients, and FIREFISH, a trial in infant onset (Type I) SMA patients.

About Keryx Biopharmaceuticals

Keryx Biopharmaceuticals, Inc. is a biopharmaceutical company focused on the development of medicines for people with renal disease. The Company is engaged in the manufacture, development and commercialization of products for use in treating human diseases. Its marketed product, Auryxia (ferric citrate), which is an orally available, absorbable, iron-based medicine is approved in the United States for the control of serum phosphorus levels in patients with chronic kidney disease (CKD) on dialysis. Auryxia is marketed in Japan under the brand name Riona. It is investigating the use of ferric citrate for the treatment of iron deficiency anemia (IDA) in adults with non-dialysis dependent (NDD), CKD and NDD-CKD. It focuses on Keryx Patient Plus program to assist with patient accessibility to Auryxia. It has completed a Phase II clinical trial and a Phase III clinical trial of ferric citrate to gain Food and Drug Administration approval to use ferric citrate in patients with NDD-CKD.

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