Arena Pharmaceuticals (NASDAQ:ARNA) and uniQure (NASDAQ:QURE) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Arena Pharmaceuticals and uniQure, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arena Pharmaceuticals 0 0 15 0 3.00
uniQure 0 1 11 1 3.00

Arena Pharmaceuticals presently has a consensus price target of $91.80, indicating a potential upside of 36.59%. uniQure has a consensus price target of $68.46, indicating a potential upside of 92.52%. Given uniQure’s higher probable upside, analysts plainly believe uniQure is more favorable than Arena Pharmaceuticals.

Profitability

This table compares Arena Pharmaceuticals and uniQure’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arena Pharmaceuticals N/A -33.17% -30.41%
uniQure -2,738.33% -59.64% -41.47%

Insider and Institutional Ownership

89.7% of Arena Pharmaceuticals shares are held by institutional investors. Comparatively, 78.3% of uniQure shares are held by institutional investors. 3.1% of Arena Pharmaceuticals shares are held by company insiders. Comparatively, 2.8% of uniQure shares are held by company 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.

Earnings and Valuation

This table compares Arena Pharmaceuticals and uniQure’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arena Pharmaceuticals $806.43 million 5.03 $397.55 million $7.69 8.74
uniQure $7.28 million 219.78 -$124.20 million ($3.11) -11.43

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

Risk & Volatility

Arena Pharmaceuticals has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, uniQure has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Summary

Arena Pharmaceuticals beats uniQure on 9 of the 14 factors compared between the two stocks.

About Arena Pharmaceuticals

Arena Pharmaceuticals, Inc., a biopharmaceutical company, focuses on providing novel medicines with pharmacology and pharmacokinetics to patients worldwide. Its investigational clinical programs include Etrasimod (APD334) that is in Phase III clinical trial for ulcerative colitis, Phase IIb/III clinical trial for Crohn's disease, Phase II clinical trial for alopecia areata, Phase III clinical trial for atopic dermatitis, and Phase IIb clinical trial for eosinophilic esophagitis; Olorinab (APD371), which is in Phase IIb clinical trial for the treatment of abdominal pain associated with irritable bowel syndrome; APD418 that is in Phase I clinical trial for acute heart failure; and Temanogrel for coronary microvascular obstruction is in Phase II clinical trial. It also develops ralinepag (APD811), which is in Phase III clinical trial for pulmonary arterial hypertension. The company has collaboration agreements with United Therapeutics Corporation; Everest Medicines Limited; Beacon Discovery; Boehringer Ingelheim International GmbH; and Eisai Co., Ltd. and Eisai Inc. Arena Pharmaceuticals, Inc. was incorporated in 1997 and is based in Park City, Utah.

About uniQure

uniQure N.V., a gene therapy company, engages in the development of treatments for patients suffering from genetic and other devastating diseases. Its lead program is Etranacogene dezaparvovec (AMT-061), which is in Phase III HOPE-B pivotal trial for the treatment of hemophilia B. The company also engages in developing AMT-130, a gene therapy that is in Phase I/II clinical study for the treatment of Huntington's disease; AMT-060, which is in Phase I/II clinical trial for the treatment of hemophilia B; AMT-180 for the treatment of hemophilia A; AMT-190, an IV-administered adeno-associated virus (AAV) 5-based gene therapy for the treatment of Fabry disease; and AMT-150, a one-time, intrathecally-administered, AAV gene therapy for treating spinocerebellar ataxia type 3. The company has collaboration and license agreements with Bristol Myers-Squibb Company; Gen-X; and Synpromics Limited. uniQure N.V. was founded in 1998 and is headquartered in Amsterdam, the Netherlands.

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