Peregrine Pharmaceuticals (NASDAQ: PPHM) and Biogen (NASDAQ:BIIB) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Peregrine Pharmaceuticals and Biogen, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Peregrine Pharmaceuticals 0 1 2 0 2.67
Biogen 0 10 12 2 2.67

Peregrine Pharmaceuticals presently has a consensus target price of $5.25, indicating a potential upside of 82.29%. Biogen has a consensus target price of $331.23, indicating a potential upside of 1.50%. Given Peregrine Pharmaceuticals’ higher probable upside, equities analysts plainly believe Peregrine Pharmaceuticals is more favorable than Biogen.

Earnings and Valuation

This table compares Peregrine Pharmaceuticals and Biogen’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Peregrine Pharmaceuticals $57.63 million 2.25 -$25.80 million ($0.93) -3.10
Biogen $11.72 billion 5.89 $6.42 billion $15.23 21.43

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

Volatility & Risk

Peregrine Pharmaceuticals has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500. Comparatively, Biogen has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Profitability

This table compares Peregrine Pharmaceuticals and Biogen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Peregrine Pharmaceuticals -48.86% -63.75% -25.31%
Biogen 28.10% 37.42% 20.12%

Institutional and Insider Ownership

87.3% of Biogen shares are owned by institutional investors. 4.9% of Peregrine Pharmaceuticals shares are owned by company insiders. Comparatively, 0.3% of Biogen shares are owned by company 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.

Summary

Biogen beats Peregrine Pharmaceuticals on 10 of the 13 factors compared between the two stocks.

About Peregrine Pharmaceuticals

Peregrine Pharmaceuticals, Inc. (Peregrine) is a biopharmaceutical company. The Company operates through two segments: Peregrine, which is engaged in the research and development of monoclonal antibodies for the treatment of cancer, and Avid, which is engaged in providing contract manufacturing services for third party customers on a fee-for-service basis while also supporting its internal drug development efforts. Bavituximab is its lead immunotherapy candidate. Bavituximab is a monoclonal antibody that targets and binds to phosphatidylserine (PS), a immunosuppressive molecule that is usually located inside the membrane of healthy cells, but then flips and becomes exposed on the outside of cells in the tumor microenvironment, causing the tumor to evade immune detection. The Company’s subsidiary is Avid Bioservices, Inc. (Avid). Avid provides integrated current good manufacturing practices (cGMP) services from cell line development to commercial biomanufacturing.

About Biogen

Biogen Inc. is a biopharmaceutical company. The Company focuses on discovering, developing, manufacturing and delivering therapies to people living with serious neurological, rare and autoimmune diseases. The Company markets products, including TECFIDERA, AVONEX, PLEGRIDY, TYSABRI, ZINBRYTA and FAMPYRA for multiple sclerosis (MS), FUMADERM for the treatment of severe plaque psoriasis and SPINRAZA for the treatment of spinal muscular atrophy (SMA). It also has a collaboration agreement with Genentech, Inc. (Genentech), a member of the Roche Group, with respect to RITUXAN for the treatment of non-Hodgkin’s lymphoma, chronic lymphocytic leukemia (CLL) and other conditions, GAZYVA indicated for the treatment of CLL and follicular lymphoma, and other anti-CD20 therapies. The Company’s product candidate includes OCREVUS; Biosimilar adalimumab; Aducanumab; E2609; BIIB074; BAN2401; Opicinumab; CIRARA; BIIB061; BIIB054; BIIB067, and BIIB068.

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