Medivation (NASDAQ: MDVN) and Spark Therapeutics (NASDAQ:ONCE) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Valuation & Earnings

This table compares Medivation and Spark Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Medivation N/A N/A N/A ($1.17) -69.64
Spark Therapeutics $20.18 million 87.81 -$123.65 million ($7.22) -6.63

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

Profitability

This table compares Medivation and Spark Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Medivation -195.92% -225.98% -108.55%
Spark Therapeutics -1,090.11% -60.01% -53.26%

Insider & Institutional Ownership

87.6% of Medivation shares are held by institutional investors. Comparatively, 94.9% of Spark Therapeutics shares are held by institutional investors. 3.5% of Medivation shares are held by insiders. Comparatively, 7.3% of Spark Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Medivation has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Spark Therapeutics has a beta of 3.15, indicating that its stock price is 215% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Medivation and Spark Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medivation 0 0 0 0 N/A
Spark Therapeutics 0 4 13 0 2.76

Spark Therapeutics has a consensus target price of $78.13, suggesting a potential upside of 63.17%. Given Spark Therapeutics’ higher possible upside, analysts plainly believe Spark Therapeutics is more favorable than Medivation.

Summary

Spark Therapeutics beats Medivation on 8 of the 10 factors compared between the two stocks.

Medivation Company Profile

Medivation, Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of therapies to treat serious diseases for which there are limited treatment options. The Company, in collaboration with Astellas Pharma, Inc. (Astellas), has one commercial product, XTANDI (enzalutamide) capsules (XTANDI). XTANDI has received marketing approval in the United States, Europe and other countries across the world for the treatment of patients with metastatic castration-resistant prostate cancer (mCRPC) and in Japan for the treatment of patients with castration-resistant prostate cancer (CRPC). The Company, in collaboration with Astellas, is also conducting investigational studies of enzalutamide in prostate cancer and in advanced breast cancer. It has developed a small molecule inhibitor of the sterol regulatory element-binding protein, or SREBP, pathway which it refers to as MDV4463.

Spark Therapeutics Company Profile

Spark Therapeutics, Inc. is a gene therapy company. The Company focuses on treating orphan diseases. It has a pipeline of product candidates targeting multiple rare blinding conditions, hematologic disorders and neurodegenerative diseases. Its pipeline includes a product candidate targeting choroideremia (CHM), which is in a Phase I/II clinical trial and a product candidate for hemophilia A, which is in a Phase I/II clinical trial. Its product investigational candidate, voretigene neparvovec, is intended to treat a genetic blinding condition or inherited retinal disease (IRD). The programs targeting hematologic disorders include SPK-FIX, for which the lead product candidate, SPK-9001, is in a Phase I/II clinical trial for the treatment of hemophilia B, as well as SPK-FVIII for the treatment of hemophilia A. In its SPK-FVIII program for the treatment of hemophilia A, the Company has initiated a dose-escalating Phase I/II clinical trial for its lead product candidate, SPK-8011.

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