AVEO Pharmaceuticals (NASDAQ: AVEO) and BioCryst Pharmaceuticals (NASDAQ:BCRX) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.

Profitability

This table compares AVEO Pharmaceuticals and BioCryst Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AVEO Pharmaceuticals -1,316.79% -836.92% -89.76%
BioCryst Pharmaceuticals -160.97% -276.62% -44.43%

Risk & Volatility

AVEO Pharmaceuticals has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, BioCryst Pharmaceuticals has a beta of 3.37, meaning that its share price is 237% more volatile than the S&P 500.

Valuation and Earnings

This table compares AVEO Pharmaceuticals and BioCryst Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AVEO Pharmaceuticals $4.00 million 110.32 -$31.56 million ($0.56) -6.66
BioCryst Pharmaceuticals $29.28 million 14.39 -$42.94 million ($0.62) -8.45

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

Institutional & Insider Ownership

53.8% of AVEO Pharmaceuticals shares are owned by institutional investors. Comparatively, 70.2% of BioCryst Pharmaceuticals shares are owned by institutional investors. 4.7% of AVEO Pharmaceuticals shares are owned by insiders. Comparatively, 5.8% of BioCryst Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for AVEO Pharmaceuticals and BioCryst Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AVEO Pharmaceuticals 0 0 2 0 3.00
BioCryst Pharmaceuticals 0 3 7 0 2.70

AVEO Pharmaceuticals presently has a consensus target price of $3.75, indicating a potential upside of 0.54%. BioCryst Pharmaceuticals has a consensus target price of $9.25, indicating a potential upside of 76.53%. Given BioCryst Pharmaceuticals’ higher possible upside, analysts clearly believe BioCryst Pharmaceuticals is more favorable than AVEO Pharmaceuticals.

Summary

BioCryst Pharmaceuticals beats AVEO Pharmaceuticals on 9 of the 13 factors compared between the two stocks.

AVEO Pharmaceuticals Company Profile

AVEO Pharmaceuticals, Inc. is a biopharmaceutical company. The Company’s platform delivers insights into cancer and related disease. The Company’s product candidates include Tivozanib, Ficlatuzumab, AV-203 and AV-380. Tivozanib is a selective long half-life vascular endothelial growth factor tyrosine kinase inhibitor (VEGF TKI) that inhibits over three VEGF receptors. Tivozanib is designed to optimize VEGF blockade while minimizing off-target toxicities. Ficlatuzumab is a Hepatocyte Growth Factor (HGF) inhibitory antibody. AV-203 is an anti-ErbB3 monoclonal antibody with ErbB3 affinity. Its preclinical studies suggest that neuregulin1 (NRG1) levels predict AV-203 antitumor activity in preclinical models. AV-380 is a humanized Immunoglobulin G 1 (IgG1) inhibitory monoclonal antibody. AV-380 targets growth differentiating factor 15 (GDF15).

BioCryst Pharmaceuticals Company Profile

BioCryst Pharmaceuticals, Inc. is a biotechnology company. The Company designs, optimizes and develops small molecule drugs that block enzymes involved in the pathogenesis of diseases. The Company focuses on the treatment of rare diseases. It uses X-ray crystallography, computer modeling of molecular structures and chemistry techniques to focus on the three-dimensional molecular structure and active site characteristics of the enzymes that control cellular biology. The Company’s drug candidates include RAPIVAB, RAPIACTA, ALPIVAB, PERAMIFLU, Avoralstat, BCX7353, other second generation hereditary angioedema (HAE) compounds, Galidesivir and Forodesine. Its product RAPIVAB contains peramivir. ALPIVAB is an intravenous neuraminidase inhibitor. Galidesivir is a broad-spectrum antiviral (BSAV) research program developed for the treatment of hemorrhagic fever viruses. Forodesine is a Purine Nucleoside Phosphorylase (PNP) inhibitor in development by Mundipharma as a treatment for cancer.

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