Momenta Pharmaceuticals (NASDAQ: MNTA) and Alkermes (NASDAQ:ALKS) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and price targets for Momenta Pharmaceuticals and Alkermes, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Momenta Pharmaceuticals 1 8 0 0 1.89
Alkermes 0 5 5 0 2.50

Momenta Pharmaceuticals presently has a consensus target price of $14.44, suggesting a potential upside of 11.54%. Alkermes has a consensus target price of $64.50, suggesting a potential upside of 20.11%. Given Alkermes’ stronger consensus rating and higher possible upside, analysts clearly believe Alkermes is more favorable than Momenta Pharmaceuticals.

Earnings and Valuation

This table compares Momenta Pharmaceuticals and Alkermes’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Momenta Pharmaceuticals $109.62 million 9.02 -$21.00 million ($0.80) -16.19
Alkermes $745.69 million 11.07 -$208.44 million ($1.11) -48.38

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

Insider & Institutional Ownership

93.4% of Momenta Pharmaceuticals shares are owned by institutional investors. Comparatively, 99.8% of Alkermes shares are owned by institutional investors. 4.4% of Momenta Pharmaceuticals shares are owned by company insiders. Comparatively, 5.3% of Alkermes shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Momenta Pharmaceuticals has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500. Comparatively, Alkermes has a beta of 2.14, indicating that its stock price is 114% more volatile than the S&P 500.

Profitability

This table compares Momenta Pharmaceuticals and Alkermes’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Momenta Pharmaceuticals -55.61% -16.20% -11.82%
Alkermes -20.12% -7.27% -5.05%

Summary

Alkermes beats Momenta Pharmaceuticals on 11 of the 13 factors compared between the two stocks.

About Momenta Pharmaceuticals

Momenta Pharmaceuticals, Inc. is a biotechnology company. The Company is focused on developing generic versions of drugs, biosimilars and therapeutics for oncology and autoimmune disease. The Company has developed generic version of LOVENOX (enoxaparin sodium injection) and COPAXONE (glatiramer acetate injection). GLATOPA 20 milligrams (mg)/ milliliters (mL) is a generic version of once-daily COPAXONE 20 mg/mL indicated for the treatment of patients with relapsing forms of multiple sclerosis, a chronic disease of the central nervous system characterized by inflammation and neurodegeneration. COPAXONE is available in both a once-daily 20 mg/mL formulation and a three-times-weekly 40 mg/mL formulation. The Company’s Enoxaparin Sodium Injection is a generic version of LOVENOX indicated for the prevention and treatment of deep vein thrombosis and to support the treatment of acute coronary syndromes. The Company’s programs include M254, M281 (Anti-FcRn candidate) and M230.

About Alkermes

Alkermes plc is a biopharmaceutical company. The Company is engaged in the researching, developing and commercializing pharmaceutical products that are designed to address medical needs of patients in therapeutic areas. The Company has a portfolio of marketed drug products and a clinical pipeline of products that address central nervous system (CNS) disorders, such as schizophrenia, depression, addiction and multiple sclerosis (MS). The Company’s products include ARISTADA, VIVITROL, INVEGA SUSTENNA, XEPLION, INVEGA TRINZA, TREVICTA, RISPERDAL CONSTA, AMPYRA, FAMPYRA, BYDUREON, Aripiprazole lauroxil, ALKS 5461, ALKS 3831, ALKS 8700, ALKS 6428, ALKS 4230 and ALKS 7119. The Company’s product platforms include injectable extended-release microsphere technology, LinkeRx technology, NanoCrystal technology and oral controlled release (OCR) technology. ARISTADA is an extended-release intramuscular injectable suspension for the treatment of schizophrenia.

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