SUMMIT THERAPEU/S (NASDAQ:SMMT) and Insmed (NASDAQ:INSM) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
This table compares SUMMIT THERAPEU/S and Insmed’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
8.3% of SUMMIT THERAPEU/S shares are held by institutional investors. 5.0% of Insmed shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a summary of recent ratings and price targets for SUMMIT THERAPEU/S and Insmed, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SUMMIT THERAPEU/S presently has a consensus target price of $2.00, suggesting a potential upside of 30.73%. Insmed has a consensus target price of $40.50, suggesting a potential upside of 74.49%. Given Insmed’s stronger consensus rating and higher probable upside, analysts clearly believe Insmed is more favorable than SUMMIT THERAPEU/S.
Earnings and Valuation
This table compares SUMMIT THERAPEU/S and Insmed’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SUMMIT THERAPEU/S||$56.50 million||0.87||$9.99 million||$0.84||1.82|
|Insmed||$9.84 million||210.73||-$324.28 million||($4.17)||-5.57|
SUMMIT THERAPEU/S has higher revenue and earnings than Insmed. Insmed is trading at a lower price-to-earnings ratio than SUMMIT THERAPEU/S, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
SUMMIT THERAPEU/S has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Insmed has a beta of 3.04, indicating that its stock price is 204% more volatile than the S&P 500.
Insmed beats SUMMIT THERAPEU/S on 8 of the 14 factors compared between the two stocks.
About SUMMIT THERAPEU/S
Summit Therapeutics plc, a biopharmaceutical company, focuses on the discovery, development, and commercialization of novel medicines to treat rare and infectious diseases in the United Kingdom and North America. It is conducting clinical programmes focused on the genetic disease Duchenne muscular dystrophy (DMD) and the infectious disease Clostridium difficile infection (CDI). The company's lead DMD product candidate is ezutromid, an orally administered small molecule, which is in Phase II clinical trial; and lead CDI product candidate is ridinilazole, an orally administered small molecule antibiotic that has completed Phase II clinical trials. It has strategic alliance with the University of Oxford to develop utrophin modulators. The company was formerly known as Summit Corporation plc and changed its name to Summit Therapeutics plc in February 2015. Summit Therapeutics plc was founded in 2003 and is based in Abingdon, the United Kingdom.
Insmed Incorporated is a global biopharmaceutical company on a mission to transform the lives of patients with serious and rare diseases. Insmed’s first commercial product is ARIKAYCE® (amikacin liposome inhalation suspension), which is approved in the United States for the treatment of Mycobacterium avium complex (MAC) lung disease as part of a combination antibacterial drug regimen for adult patients with limited or no alternative treatment options. MAC lung disease is a rare and often chronic infection that can cause irreversible lung damage and can be fatal. Insmed’s earlier-stage clinical pipeline includes INS1007, a novel oral reversible inhibitor of dipeptidyl peptidase 1 with therapeutic potential in non-cystic fibrosis bronchiectasis and other inflammatory diseases, and INS1009, an inhaled formulation of a treprostinil prodrug that may offer a differentiated product profile for rare pulmonary disorders, including pulmonary arterial hypertension.
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