Dicerna Pharmaceuticals (NASDAQ:DRNA) and Lannett (NYSE:LCI) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.
Insider and Institutional Ownership
84.8% of Dicerna Pharmaceuticals shares are owned by institutional investors. 21.3% of Dicerna Pharmaceuticals shares are owned by insiders. Comparatively, 12.6% of Lannett shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Dicerna Pharmaceuticals has a beta of 2.38, indicating that its stock price is 138% more volatile than the S&P 500. Comparatively, Lannett has a beta of 2.16, indicating that its stock price is 116% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Dicerna Pharmaceuticals and Lannett, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dicerna Pharmaceuticals currently has a consensus target price of $29.43, suggesting a potential upside of 13.69%. Lannett has a consensus target price of $14.00, suggesting a potential upside of 58.01%. Given Lannett’s higher probable upside, analysts plainly believe Lannett is more favorable than Dicerna Pharmaceuticals.
Valuation and Earnings
This table compares Dicerna Pharmaceuticals and Lannett’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dicerna Pharmaceuticals||$6.18 million||286.62||-$88.85 million||($1.20)||-21.57|
|Lannett||$655.41 million||0.55||-$272.11 million||$2.35||3.77|
Dicerna Pharmaceuticals has higher earnings, but lower revenue than Lannett. Dicerna Pharmaceuticals is trading at a lower price-to-earnings ratio than Lannett, indicating that it is currently the more affordable of the two stocks.
This table compares Dicerna Pharmaceuticals and Lannett’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Dicerna Pharmaceuticals Company Profile
Dicerna Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the discovery and development of ribonucleic acid interference (RNAi)-based pharmaceuticals. The company develops pharmaceuticals using its GalXC RNAi platform for the treatment of diseases involving the liver, including rare diseases, viral infectious diseases, chronic liver diseases, and cardiovascular diseases. Its principal development programs include DCR-PHXC for the treatment of primary hyperoxaluria; DCR-HBVS for the treatment of chronic hepatitis B virus infection; and a program for an undisclosed rare liver disease. The company's development programs also comprise additional rare disease programs; a program for the treatment of hypercholesterolemia; and various programs in various therapeutic areas involving liver function. The company has strategic collaborations with Eli Lilly and Company, Alexion Pharmaceuticals, Inc., and Boehringer Ingelheim International GmbH. Dicerna Pharmaceuticals, Inc. was founded in 2006 and is headquartered in Cambridge, Massachusetts.
Lannett Company Profile
Lannett Company, Inc. develops, manufactures, packages, markets, and distributes generic versions of brand pharmaceutical products in the United States. The company offers solid oral and extended release, topical, liquid, nasal, and oral solution finished dosage forms of drugs that address a range of therapeutic areas, as well as ophthalmic, patch, foam, buccal, sublingual, suspension, soft gel, and injectable dosages. It also provides its products for various medical indications comprising cholesterol, muscle spasm, pain management, irritable bowel, antipsychosis, gastrointestinal, cardiovascular, thyroid deficiency, central nervous system, urinary, migraine, bronchospasms, and gallstone. In addition, the company manufactures active pharmaceutical ingredients. It markets its products under the Lipitor, Lioresal, Bentyl, Prolixin, MiraLAX, Imdur, Levoxyl/Synthroid, Concerta, Toprol-XL, Prilosec, Ditropan, Protonix, Imitrex, Brethine, and Actigall brands to generic pharmaceutical and private label distributors, drug wholesalers, chain drug retailers, mail-order pharmacies, other pharmaceutical manufacturers, managed care and health maintenance organizations, hospital buying groups, and governmental entities. The company has supply and development agreements with Jerome Stevens Pharmaceuticals, Summit Bioscience LLC, HEC Pharm Group, Andor Pharmaceuticals LLC, Dexcel Pharma, and Aralez Pharmaceuticals. Lannett Company, Inc. was founded in 1942 and is based in Philadelphia, Pennsylvania.
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