Insmed (INSM) & MEI Pharma (MEIP) Critical Analysis
Insmed (NASDAQ: INSM) and MEI Pharma (NASDAQ:MEIP) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
This is a summary of current recommendations for Insmed and MEI Pharma, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Insmed currently has a consensus target price of $36.71, suggesting a potential upside of 17.37%. MEI Pharma has a consensus target price of $6.75, suggesting a potential upside of 162.65%. Given MEI Pharma’s stronger consensus rating and higher possible upside, analysts plainly believe MEI Pharma is more favorable than Insmed.
Earnings & Valuation
This table compares Insmed and MEI Pharma’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|MEI Pharma||$23.25 million||4.08||$2.47 million||$0.06||42.84|
MEI Pharma has higher revenue and earnings than Insmed. Insmed is trading at a lower price-to-earnings ratio than MEI Pharma, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Insmed has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, MEI Pharma has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.
This table compares Insmed and MEI Pharma’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
73.1% of Insmed shares are owned by institutional investors. Comparatively, 17.9% of MEI Pharma shares are owned by institutional investors. 5.1% of Insmed shares are owned by company insiders. Comparatively, 4.6% of MEI Pharma shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
MEI Pharma beats Insmed on 9 of the 12 factors compared between the two stocks.
Insmed Incorporated is a biopharmaceutical company. The Company operates through development and commercialization of therapies for patients with rare diseases segment. Its lead product candidate is ARIKAYCE, or liposomal amikacin for inhalation (LAI), which is in late-stage development for adult patients with treatment refractory nontuberculous mycobacteria (NTM) lung disease caused by Mycobacterium avium complex (MAC). Its earlier-stage pipeline includes preclinical compounds that the Company is evaluating in multiple rare diseases of unmet medical need, including methicillin-resistant staph aureus and NTM. Its earlier clinical-stage pipeline includes INS1007 and INS1009. INS1007 is an oral, reversible inhibitor of dipeptidyl peptidase 1. INS1009 is an inhaled nanoparticle formulation of a treprostinil prodrug that may offer a differentiated product profile for rare pulmonary disorders, including pulmonary arterial hypertension. It has completed a Phase I study of INS1009.
About MEI Pharma
MEI Pharma, Inc. is an oncology company. The Company is focused on the clinical development of drugs and therapies for treatment of cancer. The Company’s portfolio of clinical drug candidates includes Pracinostat, ME-344 and PWT143. Pracinostat is an orally available histone deacetylase (HDAC) inhibitor indicated for the treatment of advanced hematologic diseases, such as acute myeloid leukemia (AML) and myelodysplastic syndrome (MDS). ME-344 is an isoflavone-based mitochondrial inhibitor targeting a mitochondrial component of the terminal respiratory chain complex in rapidly proliferating cells. PWT143 is an oral inhibitor of phosphatidylinositide 3-kinase (PI3K) delta, a molecular target that plays a critical role in the proliferation and survival of hematologic cancer cells. Pracinostat has been tested in multiple Phase I and Phase II clinical trials in advanced hematologic malignancies and solid tumor indications.
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