PTC Therapeutics (PTCT) and BioDelivery Sciences International (BDSI) Critical Survey

PTC Therapeutics (NASDAQ:PTCT) and BioDelivery Sciences International (NASDAQ:BDSI) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Institutional and Insider Ownership

81.5% of PTC Therapeutics shares are held by institutional investors. Comparatively, 52.8% of BioDelivery Sciences International shares are held by institutional investors. 7.5% of PTC Therapeutics shares are held by company insiders. Comparatively, 13.3% of BioDelivery Sciences International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares PTC Therapeutics and BioDelivery Sciences International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PTC Therapeutics $194.39 million 8.75 -$79.00 million ($2.02) -14.69
BioDelivery Sciences International $61.99 million 5.29 $5.28 million ($0.39) -11.87

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

Profitability

This table compares PTC Therapeutics and BioDelivery Sciences International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PTC Therapeutics -30.61% -27.95% -11.61%
BioDelivery Sciences International -85.93% -141.35% -30.74%

Risk and Volatility

PTC Therapeutics has a beta of 2.11, meaning that its stock price is 111% more volatile than the S&P 500. Comparatively, BioDelivery Sciences International has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for PTC Therapeutics and BioDelivery Sciences International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PTC Therapeutics 0 3 5 0 2.63
BioDelivery Sciences International 0 0 4 0 3.00

PTC Therapeutics presently has a consensus price target of $47.14, indicating a potential upside of 58.84%. BioDelivery Sciences International has a consensus price target of $4.75, indicating a potential upside of 2.59%. Given PTC Therapeutics’ higher possible upside, analysts clearly believe PTC Therapeutics is more favorable than BioDelivery Sciences International.

Summary

PTC Therapeutics beats BioDelivery Sciences International on 9 of the 14 factors compared between the two stocks.

About PTC Therapeutics

PTC Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of medicines for the treatment of rare disorders. The company offers Translarna (ataluren) for the treatment of nonsense mutation Duchenne muscular dystrophy in ambulatory patients; and Emflaza (deflazacort) for treating Duchenne muscular dystrophy. It is developing Translarna, which is in Phase II clinical study for the treatment of nonsense mutation aniridia and nonsense mutation Dravet syndrome/CDKL5; and RG7916 for the treatment of patients with spinal muscular atrophy, as well as PTC596, an orally bioavailable and potent small molecule that has completed Phase I study, which targets solid tumor cell populations by reducing the activity and amount of BMI1. The company has collaborations with F. Hoffman-La Roche Ltd and Hoffman-La Roche Inc., and the Spinal Muscular Atrophy Foundation to develop and commercialize compounds identified under its spinal muscular atrophy sponsored research program; research collaboration with Massachusetts General Hospital for the treatment of rare genetic disorders resulting from pre-mRNA; and research collaboration with CHDI Foundation, Inc. to discover and develop small-molecule therapeutics for Huntington's disease. PTC Therapeutics, Inc. was founded in 1998 and is headquartered in South Plainfield, New Jersey.

About BioDelivery Sciences International

BioDelivery Sciences International, Inc., a specialty pharmaceutical company, engages in the development and commercialization of pharmaceutical products principally in the areas of pain management and addiction. The company provides its products based on its patented BioErodible MucoAdhesive drug delivery technology, a small erodible polymer film for application to the buccal mucosa, as well as other drug delivery technologies. It offers BELBUCA, a buprenorphine buccal film for the treatment of chronic pain; BUNAVAIL, a buprenorphine and naloxone buccal film for the treatment of opioid dependence; and ONSOLIS, a fentanyl buccal soluble film to treat breakthrough pain in opioid patients with cancer. The company also develops buprenorphine extended release injection, an injectable microparticle formulation of buprenorphine for the treatment of opioid dependence and chronic pain. BioDelivery Sciences International, Inc. has a licensing and development agreement with Evonik Corporation and Meda AB. The company was founded in 1997 and is headquartered in Raleigh, North Carolina.

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