Jazz Pharmaceuticals PLC (NASDAQ: JAZZ) and Mateon Therapeutics (NASDAQ:MATN) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Volatility & Risk

Jazz Pharmaceuticals PLC has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Mateon Therapeutics has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.

Insider & Institutional Ownership

88.3% of Jazz Pharmaceuticals PLC shares are held by institutional investors. Comparatively, 8.6% of Mateon Therapeutics shares are held by institutional investors. 4.3% of Jazz Pharmaceuticals PLC shares are held by insiders. Comparatively, 2.3% of Mateon Therapeutics shares are held 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 breakdown of recent ratings and target prices for Jazz Pharmaceuticals PLC and Mateon Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jazz Pharmaceuticals PLC 0 5 15 0 2.75
Mateon Therapeutics 0 1 3 0 2.75

Jazz Pharmaceuticals PLC presently has a consensus price target of $181.20, suggesting a potential upside of 21.36%. Mateon Therapeutics has a consensus price target of $2.00, suggesting a potential upside of 640.74%. Given Mateon Therapeutics’ higher probable upside, analysts plainly believe Mateon Therapeutics is more favorable than Jazz Pharmaceuticals PLC.

Profitability

This table compares Jazz Pharmaceuticals PLC and Mateon Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jazz Pharmaceuticals PLC 25.69% 22.75% 9.14%
Mateon Therapeutics N/A -224.38% -186.53%

Valuation and Earnings

This table compares Jazz Pharmaceuticals PLC and Mateon Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Jazz Pharmaceuticals PLC $1.54 billion 5.82 $758.97 million $6.45 23.15
Mateon Therapeutics N/A N/A -$14.59 million ($0.54) -0.50

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

Summary

Jazz Pharmaceuticals PLC beats Mateon Therapeutics on 9 of the 11 factors compared between the two stocks.

Jazz Pharmaceuticals PLC Company Profile

Jazz Pharmaceuticals, Inc. is a specialty pharmaceutical company focusing on the development and commercialization of pharmaceutical products to meet unmet medical needs in neurology and psychiatry. As of December 31, 2009, the Company markets two products: Xyrem (sodium oxybate) for the treatment of both cataplexy and excessive daytime sleepiness in patients with narcolepsy; and Luvox CR (fluvoxamine maleate) for the treatment of both obsessive compulsive disorder and social anxiety disorder. Its marketed products and late-stage product candidate are Xyrem (sodium oxybate) oral solution, Luvox CR (fluvoxamine maleate) Extended-Release Capsules and JZP-6 (sodium oxybate). Its other product candidates in clinical development are oral tablet forms of sodium oxybate; JZP-8 (intranasal clonazepam); JZP-4 (elpetrigine), and JZP-7 (ropinirole gel).

Mateon Therapeutics Company Profile

Mateon Therapeutics, Inc., formerly OXiGENE, Inc., is a biopharmaceutical company. The Company is focused on the development of vascular disrupting agents (VDAs) for the treatment of cancer. The Company is engaged in developing two clinical stage investigational drugs: VDAs-CA4P and OXi4503. Its lead compound is CA4P, which is also known as combretastatin A4-phosphate, fosbretabulin tromethamine, fosbretabulin and ZYBRESTAT. VDAs selectively targets the vasculature of cancer tumors and obstructs a tumor’s blood supply without disrupting the blood supply to normal tissues. VDAs are in a class of drugs called vascular targeted therapies (VTTs), which also includes anti-angiogenic agents (AAs). CA4P is a reversible tubulin binding agent that selectively targets the endothelial cells that make up the blood vessel walls in solid tumors. The Company is pursuing the development of a product candidate, OXi4503, which is a dual-mechanism VDA.

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