Financial Analysis: Alexion Pharmaceuticals (ALXN) vs. Catalyst Biosciences (CBIO)
Alexion Pharmaceuticals (NASDAQ: ALXN) and Catalyst Biosciences (NASDAQ:CBIO) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.
This is a breakdown of current ratings for Alexion Pharmaceuticals and Catalyst Biosciences, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Alexion Pharmaceuticals currently has a consensus target price of $157.35, indicating a potential upside of 8.43%. Catalyst Biosciences has a consensus target price of $24.50, indicating a potential upside of 548.15%. Given Catalyst Biosciences’ stronger consensus rating and higher probable upside, analysts plainly believe Catalyst Biosciences is more favorable than Alexion Pharmaceuticals.
Earnings and Valuation
This table compares Alexion Pharmaceuticals and Catalyst Biosciences’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Alexion Pharmaceuticals||$3.41 billion||9.50||$1.34 billion||$2.31||62.82|
|Catalyst Biosciences||$561,999.00||28.99||-$19.79 million||($17.78)||-0.21|
Alexion Pharmaceuticals has higher revenue and earnings than Catalyst Biosciences. Catalyst Biosciences is trading at a lower price-to-earnings ratio than Alexion Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
94.3% of Alexion Pharmaceuticals shares are owned by institutional investors. Comparatively, 29.2% of Catalyst Biosciences shares are owned by institutional investors. 4.4% of Alexion Pharmaceuticals shares are owned by company insiders. Comparatively, 5.0% of Catalyst Biosciences shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Alexion Pharmaceuticals and Catalyst Biosciences’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Alexion Pharmaceuticals has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, Catalyst Biosciences has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500.
Alexion Pharmaceuticals beats Catalyst Biosciences on 9 of the 14 factors compared between the two stocks.
About Alexion Pharmaceuticals
Alexion Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of therapeutic products. The Company’s products include Soliris (eculizumab), Strensiq (asfotase alfa) and Kanuma (sebelipase alfa). The Company’s clinical development programs include Soliris (eculizumab), cPMP (ALXN1101), SBC-103, ALXN1210 (IV) and ALXN1210 (Subcutaneous). Its Soliris is the therapeutic approved for patients with either paroxysmal nocturnal hemoglobinuria (PNH) or hemolytic uremic syndrome (aHUS). PNH and aHUS result from chronic uncontrolled activation of the complement component of the immune system. Its Strensiq is for the treatment of patients with Hypophosphatasia (HPP). Its product, Kanuma is for the treatment of patients with Lysosomal Acid Lipase Deficiency (LAL-D). It is a recombinant form of the human LAL enzyme, which is a replacement therapy that is approved for the treatment for patients with LAL-D.
About Catalyst Biosciences
Catalyst Biosciences, Inc., formerly Targacept, Inc., is a clinical-stage biopharmaceutical company. The Company is focused on creating and developing medicines to address serious medical conditions. The Company focuses its product development efforts in the fields of hemostasis, including the treatment of hemophilia and surgical bleeding, and inflammation, including prevention of delayed graft function (DGF) in renal transplants and the treatment of dry age-related macular degeneration (dry AMD), a condition that can cause visual impairment or blindness. The Company’s advanced program is a coagulation Factor VIIa variant, CB 813d, that has completed a Phase I clinical trial in severe hemophilia A and B patients. In addition to its lead Factor VIIa program, it has approximately two other coagulation factors, a Factor IX variant, CB 2679d/ISU 304, that is in advanced preclinical development, and a Factor Xa variant that has reached the advanced lead preclinical-stage of development.
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