Financial Survey: Achillion Pharmaceuticals (ACHN) and Five Prime Therapeutics (FPRX)

Achillion Pharmaceuticals (NASDAQ: FPRX) and Five Prime Therapeutics (NASDAQ:FPRX) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Achillion Pharmaceuticals and Five Prime Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Achillion Pharmaceuticals 0 4 2 0 2.33
Five Prime Therapeutics 0 4 6 0 2.60

Achillion Pharmaceuticals currently has a consensus target price of $4.80, suggesting a potential upside of 71.43%. Five Prime Therapeutics has a consensus target price of $36.00, suggesting a potential upside of 151.75%. Given Five Prime Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Five Prime Therapeutics is more favorable than Achillion Pharmaceuticals.

Institutional and Insider Ownership

78.4% of Achillion Pharmaceuticals shares are held by institutional investors. Comparatively, 86.3% of Five Prime Therapeutics shares are held by institutional investors. 6.3% of Achillion Pharmaceuticals shares are held by insiders. Comparatively, 6.4% of Five Prime Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Achillion Pharmaceuticals has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Five Prime Therapeutics has a beta of 3.32, suggesting that its stock price is 232% more volatile than the S&P 500.

Profitability

This table compares Achillion Pharmaceuticals and Five Prime Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Achillion Pharmaceuticals N/A -25.26% -24.41%
Five Prime Therapeutics -206.02% -40.61% -33.08%

Valuation and Earnings

This table compares Achillion Pharmaceuticals and Five Prime Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Achillion Pharmaceuticals $15.00 million 25.87 -$85.23 million ($0.62) -4.52
Five Prime Therapeutics $39.51 million 12.88 -$150.22 million ($5.38) -2.66

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

Summary

Five Prime Therapeutics beats Achillion Pharmaceuticals on 8 of the 14 factors compared between the two stocks.

Achillion Pharmaceuticals Company Profile

Achillion Pharmaceuticals, Inc., a biopharmaceutical company, discovers, develops, and commercializes small molecule drug therapies for immune system disorders in the United States. Its lead drug candidate includes ACH-4471, an inhibitor of factor D that is Phase II clinical trials for patients with paroxysmal nocturnal hemoglobinuria and C3 glomerulopathy. The company is also developing ACH-5228, a factor D inhibitor that is in Phase I clinical trial; ACH-5548, a factor D inhibitor; and other factor D inhibitors. It has license agreements with GCA Therapeutics, Ltd and Ora, Inc., as well as a collaboration arrangement with Janssen Pharmaceuticals Inc. to develop and commercialize drug candidates for the treatment of chronic hepatitis C virus. The company was founded in 1998 and is headquartered in New Haven, Connecticut.

Five Prime Therapeutics Company Profile

Five Prime Therapeutics, Inc., a clinical-stage biotechnology company, focuses on the discovery and development of immuno-oncology protein therapeutics. The company's product candidates include Cabiralizumab, an antibody that inhibits colony stimulating factor-1 receptor that is in Phase Ia/Ib clinical trials for the treatment of various cancers in combination with nivolumab; and is in Phase I/II clinical trials for the treatment of pigmented villonodular synovitis tumor. Its product candidates also comprise Bemarituzumab, an antibody that inhibits fibroblast growth factor receptor IIb, which is in Phase I clinical trials to treat patients with gastric or gastroesophageal junction and bladder cancer; and FPA150, a CD8 T cell checkpoint inhibitor antibody that targets B7-H4 as a monotherapy in various cancers. The company's FP-1039 is in Phase Ib clinical trials to treat patients with malignant pleural mesothelioma. Its preclinical product candidates include FPA150, a CD8 T cell checkpoint inhibitor antibody; FPA154, a tetravalent agonistic antibody that activates glucocorticoid-induced tumor necrosis factor receptor; and FPT155, a CD80-Fc fusion protein, which modulates signaling pathways. The company has license and collaboration agreements with Bristol-Myers Squibb Company, GlaxoSmithKline LLC, INBRX 110 LP, UCB Pharma S.A., and Zai Lab (Shanghai) Co., Ltd.; collaboration agreement with Roche; and license agreements with bluebird bio, Inc., Galaxy Biotech, LLC, BioWa, Inc. and Lonza Sales AG. Five Prime Therapeutics, Inc. was founded in 2001 and is headquartered in South San Francisco, California.

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