AveXis (NASDAQ: AVXS) and Endocyte (NASDAQ:ECYT) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

92.9% of AveXis shares are held by institutional investors. Comparatively, 17.6% of Endocyte shares are held by institutional investors. 18.6% of AveXis shares are held by company insiders. Comparatively, 14.9% of Endocyte shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares AveXis and Endocyte’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AveXis N/A N/A -$83.01 million ($5.58) -18.77
Endocyte $70,000.00 2,982.24 -$43.88 million ($1.36) -3.21

Endocyte has higher revenue and earnings than AveXis. AveXis is trading at a lower price-to-earnings ratio than Endocyte, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares AveXis and Endocyte’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AveXis N/A -49.27% -45.59%
Endocyte -82,235.72% -38.91% -37.13%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for AveXis and Endocyte, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AveXis 2 2 12 0 2.63
Endocyte 0 1 1 0 2.50

AveXis currently has a consensus price target of $111.00, indicating a potential upside of 5.98%. Endocyte has a consensus price target of $7.00, indicating a potential upside of 60.55%. Given Endocyte’s higher possible upside, analysts plainly believe Endocyte is more favorable than AveXis.

Summary

Endocyte beats AveXis on 7 of the 12 factors compared between the two stocks.

AveXis Company Profile

AveXis, Inc. is a clinical-stage gene therapy company. The Company operates through the developing and commercializing gene therapy treatments for patients suffering from neurological genetic diseases segment. The Company’s product candidate, AVXS-101, is its gene therapy product candidate that is in a Phase I clinical trial for the treatment of spinal muscular atrophy (SMA) Type 1, which is a genetic disorder characterized by motor neuron loss and associated muscle deterioration. The survival motor neuron (SMN) is a protein for normal motor neuron signaling and function. Patients with SMA Type 1 either have experienced a deletion of their SMN1 genes, which prevents them from producing adequate levels of functional SMN protein, or carry a mutation in their SMN1 gene. AVXS-101 is designed to deliver a functional human SMN gene into the nuclei of motor neurons that then generates an increase in SMN protein levels.

Endocyte Company Profile

Endocyte Inc. (Endocyte) is a biopharmaceutical company. The Company is engaged in developing therapies for the treatment of cancer and inflammatory diseases. The Company uses its technology to create small molecule drug conjugates (SMDCs) and companion imaging diagnostics. The Company’s pipeline includes Folate-Tubulysin (EC1456), the Company’s second generation SMDC, also targets the folate receptor; PSMA Tubulysin (EC1169), the Company’s non-folate SMDC, which is a tubulysin therapeutic targeting PSMA; Vintafolide (Folate DAVLBH), SMDC, vintafolide, targets the folate receptor with the anti-cancer drug payload DAVLBH; Folate-DNA alkylator (EC1788), which is a folate receptor-targeted SMDC with a potent DNA alkylator drug; Folate-Aminopterin (EC1669) is a folate receptor-targeted SMDC for the treatment in inflammatory diseases, and Folate-mTor inhibitor (EC0371), which is a folate receptor-targeted SMDC for the treatment of polycystic kidney disease(PKD).

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