Acorda Therapeutics (NASDAQ:ACOR) vs. Avrobio (NASDAQ:AVRO) Critical Contrast

Acorda Therapeutics (NASDAQ:ACOR) and Avrobio (NASDAQ:AVRO) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for Acorda Therapeutics and Avrobio, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Acorda Therapeutics 2 6 2 0 2.00
Avrobio 0 1 7 0 2.88

Acorda Therapeutics currently has a consensus target price of $20.22, indicating a potential upside of 158.93%. Avrobio has a consensus target price of $33.57, indicating a potential upside of 146.66%. Given Acorda Therapeutics’ higher possible upside, research analysts clearly believe Acorda Therapeutics is more favorable than Avrobio.

Profitability

This table compares Acorda Therapeutics and Avrobio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Acorda Therapeutics -1.40% 9.34% 4.37%
Avrobio N/A -42.94% -39.96%

Institutional & Insider Ownership

71.1% of Avrobio shares are held by institutional investors. 7.1% of Acorda Therapeutics shares are held by insiders. Comparatively, 4.7% of Avrobio shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Acorda Therapeutics and Avrobio’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Acorda Therapeutics $471.43 million 0.80 $33.68 million $1.82 4.29
Avrobio N/A N/A -$46.36 million ($3.62) -3.76

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

Summary

Acorda Therapeutics beats Avrobio on 8 of the 12 factors compared between the two stocks.

About Acorda Therapeutics

Acorda Therapeutics, Inc., a biopharmaceutical company, develops and commercializes therapies for neurological disorders in the United States. The company markets Ampyra (dalfampridine), an oral drug to improve walking in patients with multiple sclerosis (MS); and Selincro, an orally administered drug for the treatment of alcohol dependence in Europe. It also markets Ampyra as Fampyra in Europe, Asia, and the Americas. In addition, the company develops Inbrija for the treatment of OFF periods in Parkinson's disease; an inhaled triptan (zolmitriptan) for acute treatment of migraine by using the ARCUS drug delivery technology; SYN120, which is completed Phase II clinical trial to treat Parkinson's disease-related dementia; and BTT1023 (timolumab) for primary sclerosing cholangitis. Further, it develops rHIgM22, which has completed Phase I clinical trial for the treatment of MS; and Cimaglermin alfa that is in Phase Ib clinical trial for heart failure patients. The company has collaboration and license agreement with Biogen Inc. for the development and commercialization of Ampyra. Acorda Therapeutics, Inc. was founded in 1995 and is headquartered in Ardsley, New York.

About Avrobio

AVROBIO, Inc., a clinical-stage gene therapy company, focuses on developing ex vivo lentiviral-based gene therapies to treat rare diseases following a single dose in the United States. Its gene therapies employ hematopoietic stem cells that are collected from patients and modified with a lentiviral vector to insert functional copies of the gene, which is defective in the target disease. The company's lead product candidate is AVR-RD-01, which is in ongoing Phase II clinical trial and investigator-sponsored Phase I clinical trial for the treatment of Fabry disease. It is also developing AVR-RD-02 that has completed pre-clinical trials for the treatment of type 1 Gaucher disease; AVR-RD-03, which is in preclinical development to treat Pompe disease; and AVR-RD-04 that has completed pre-clinical studies for treating cystinosis. The company was founded in 2015 and is headquartered in Cambridge, Massachusetts.

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