Alnylam Pharmaceuticals (NASDAQ: ALNY) and RXi Pharmaceuticals Corporation (NASDAQ:RXII) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Insider & Institutional Ownership

94.3% of Alnylam Pharmaceuticals shares are held by institutional investors. Comparatively, 1.7% of RXi Pharmaceuticals Corporation shares are held by institutional investors. 4.3% of Alnylam Pharmaceuticals shares are held by insiders. Comparatively, 5.7% of RXi Pharmaceuticals Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Alnylam Pharmaceuticals and RXi Pharmaceuticals Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Alnylam Pharmaceuticals $66.00 million 105.92 -$436.51 million ($5.12) -14.88
RXi Pharmaceuticals Corporation N/A N/A -$9.40 million ($1.32) -0.39

RXi Pharmaceuticals Corporation has higher revenue, but lower earnings than Alnylam Pharmaceuticals. Alnylam Pharmaceuticals is trading at a lower price-to-earnings ratio than RXi Pharmaceuticals Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Alnylam Pharmaceuticals and RXi Pharmaceuticals Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alnylam Pharmaceuticals 3 4 13 0 2.50
RXi Pharmaceuticals Corporation 0 0 0 0 N/A

Alnylam Pharmaceuticals presently has a consensus price target of $82.55, suggesting a potential upside of 8.32%. RXi Pharmaceuticals Corporation has a consensus price target of $1.71, suggesting a potential upside of 228.72%. Given RXi Pharmaceuticals Corporation’s higher possible upside, analysts plainly believe RXi Pharmaceuticals Corporation is more favorable than Alnylam Pharmaceuticals.

Profitability

This table compares Alnylam Pharmaceuticals and RXi Pharmaceuticals Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alnylam Pharmaceuticals -670.81% -45.53% -34.43%
RXi Pharmaceuticals Corporation N/A -155.48% -102.55%

Volatility and Risk

Alnylam Pharmaceuticals has a beta of 2.97, suggesting that its share price is 197% more volatile than the S&P 500. Comparatively, RXi Pharmaceuticals Corporation has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Summary

Alnylam Pharmaceuticals beats RXi Pharmaceuticals Corporation on 6 of the 11 factors compared between the two stocks.

Alnylam Pharmaceuticals Company Profile

Alnylam Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is engaged in the discovery, development and commercialization of ribonucleic acid (RNA) interference (RNAi) therapeutics. The Company is focused on the use of its N-acetylgalactosamine (GalNAc)-conjugate platform for delivery of small interfering RNAs (siRNAs). Its pipeline of investigational RNAi therapeutics focuses on three Strategic Therapeutic Areas (STArs): Genetic Medicines, with multiple product candidates for the treatment of rare diseases; Cardio-Metabolic Diseases, with product candidates directed toward genetically validated, liver-expressed disease targets for unmet needs in cardiovascular and metabolic diseases, and Hepatic Infectious Diseases, with product candidates designed to address the global health challenges of hepatic infectious diseases, beginning with hepatitis B and hepatitis D viral infections. The Company’s lead product, Patisiran, is formulated utilizing lipid nanoparticles (LNPs).

RXi Pharmaceuticals Corporation Company Profile

RXi Pharmaceuticals Corporation is a clinical-stage ribonucleic acid (RNA) interference (RNAi) company developing therapeutics in dermatology and ophthalmology that address unmet medical needs. The Company’s development programs are based on its self-delivering RNAi (sd-rxRNA) platform and Samcyprone, a topical immunomodulator. Its clinical development programs include RXI-109, an sd-rxRNA, for the treatment of dermal and ocular scarring, and Samcyprone for the treatment of such disorders as warts, alopecia areata, non-malignant skin tumors and cutaneous metastases of melanoma. Its pipeline is focused on approximately three areas, including dermatology, ophthalmology and cosmetic product development. Its RNAi therapies are designed to silence, or down-regulate, the expression of a specific gene that may be over-expressed in a disease condition and its immunotherapy agent treats diseases by inducing, enhancing or suppressing an immune response.

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