Reviewing Ardelyx (ARDX) & bluebird bio (BLUE)

Ardelyx (NASDAQ: ARDX) and bluebird bio (NASDAQ:BLUE) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.

Risk and Volatility

Ardelyx has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500. Comparatively, bluebird bio has a beta of 2.02, meaning that its stock price is 102% more volatile than the S&P 500.

Institutional & Insider Ownership

78.5% of Ardelyx shares are owned by institutional investors. 15.5% of Ardelyx shares are owned by company insiders. Comparatively, 3.9% of bluebird bio shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Ardelyx and bluebird bio, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ardelyx 0 0 5 0 3.00
bluebird bio 2 5 14 0 2.57

Ardelyx currently has a consensus price target of $16.40, indicating a potential upside of 185.22%. bluebird bio has a consensus price target of $131.70, indicating a potential downside of 13.21%. Given Ardelyx’s stronger consensus rating and higher probable upside, research analysts plainly believe Ardelyx is more favorable than bluebird bio.

Earnings and Valuation

This table compares Ardelyx and bluebird bio’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Ardelyx $24.03 million 11.37 -$112.38 million ($2.23) -2.58
bluebird bio $6.16 million 1,129.01 -$263.50 million ($7.01) -21.65

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

Profitability

This table compares Ardelyx and bluebird bio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ardelyx N/A -66.87% -59.72%
bluebird bio -883.18% -28.79% -22.94%

Summary

Ardelyx beats bluebird bio on 8 of the 13 factors compared between the two stocks.

About Ardelyx

Ardelyx, Inc. is a clinical-stage biopharmaceutical company. The Company’s therapeutics focuses on addressing cardiorenal and gastrointestinal (GI) diseases. It operates through the research, development and commercialization of biopharmaceutical products segment. The Company’s products line includes cardiorenal portfolio and gastrointestinal portfolio. The Company’s cardiorenal portfolio includes two Phase III clinical product candidates, tenapanor in Phase III clinical development for treating hyperphosphatemia in end-stage renal disease (ESRD) patients on dialysis and RDX7675 in Phase III clinical development for treating hyperkalemia in chronic kidney disease (CKD) and heart failure patients. The cardiorenal portfolio includes tenapanor, RDX7675, RDX013 and RDX011. Its gastrointestinal portfolio is led by tenapanor for the treatment of irritable bowel syndrome with constipation (IBS-C). The gastrointestinal portfolio includes tenapanor, RDX8940, RDX011 and RDX023.

About bluebird bio

bluebird bio, Inc. is a clinical-stage biotechnology company. The Company is focused on developing gene therapies for severe diseases and cancer. With its lentiviral-based gene therapy and gene editing capabilities, it has built an integrated product platform with various applications in these areas. The Company’s clinical programs in severe genetic diseases include its LentiGlobin product candidate to treat transfusion-dependent b-thalassemia and to treat severe sickle cell disease (SCD) and its Lenti-D product candidate to treat cerebral adrenoleukodystrophy (CALD). Its programs in oncology focuses on developing T cell-based immunotherapies, including chimeric antigen receptor (CAR) and T cell receptor (TCR) T cell therapies. bb2121, its lead product candidate in oncology, is a CAR T cell product candidate for the treatment of multiple myeloma. It also has discovery research programs utilizing megaTALs/homing endonuclease gene editing technologies for use across its pipeline.

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