Athersys (NASDAQ:ATHX) and Astellas Pharma (OTCMKTS:ALPMY) Financial Analysis

Astellas Pharma (OTCMKTS:ALPMY) and Athersys (NASDAQ:ATHX) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Astellas Pharma and Athersys, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Astellas Pharma 0 0 1 0 3.00
Athersys 0 0 3 0 3.00

Athersys has a consensus target price of $7.33, indicating a potential upside of 358.33%. Given Athersys’ higher possible upside, analysts clearly believe Athersys is more favorable than Astellas Pharma.

Insider and Institutional Ownership

0.2% of Astellas Pharma shares are held by institutional investors. Comparatively, 27.9% of Athersys shares are held by institutional investors. 12.6% of Athersys shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Astellas Pharma and Athersys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Astellas Pharma 11.03% 13.24% 7.89%
Athersys N/A -176.56% -112.67%

Volatility and Risk

Astellas Pharma has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Athersys has a beta of -1.54, suggesting that its share price is 254% less volatile than the S&P 500.

Earnings & Valuation

This table compares Astellas Pharma and Athersys’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Astellas Pharma $11.97 billion 2.36 $1.80 billion $0.96 15.78
Athersys $5.63 million 62.76 -$44.58 million ($0.29) -5.52

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

Summary

Astellas Pharma beats Athersys on 8 of the 13 factors compared between the two stocks.

About Astellas Pharma

Astellas Pharma Inc. engages in the manufacture, marketing, import, and export of pharmaceuticals worldwide. It provides XTANDI, an androgen receptor signaling inhibitor for prostate cancer; XOSPATA, a FLT3 inhibitor for adult patients with relapsed or refractory acute myeloid leukemia with a FLT3 mutation-positive; PADCEV, a treatment solution for adult patients with locally advanced or metastatic urothelial cancer; Betanis/Myrbetriq/BETMIGA, a beta-3 adrenergic receptor agonist for the treatment of urgency, urinary frequency, and urge urinary incontinence; Evrenzo, an oral treatment for anemia associated with chronic kidney disease; and Prograf and Advagraf/Graceptor/ASTAGRAF, which are immunosuppressants used to suppress organ rejection following a transplant. The company also offers mirabegron for the treatment of neurogenic detrusor overactivity in pediatric patients; Vesicare for OAB treatment; Eligard to treat prostate cancer; Harnal/Omnic for benign prostatic hyperplasia treatment; and Funguard/MYCAMINE, an antifungal agent. The company has a clinical trial collaboration with Merck & Co., Inc.; CytomX Therapeutics, Inc.; and an agreement with BANDAI NAMCO Entertainment Inc. for the development of smartphone exercise support application. It also has strategic research alliance with Harvard University for the research and development of therapeutics and technologies of mutual interest; and research collaboration with Actinium Pharmaceuticals, Inc. to develop targeted radiotherapies using its Antibody Warhead Enabling technology platforms. Astellas Pharma Inc. was founded in 1923 and is headquartered in Tokyo, Japan.

About Athersys

Athersys, Inc., a biotechnology company, focuses on the research and development activities in the field of regenerative medicine. Its clinical development programs are focused on treating neurological conditions, cardiovascular diseases, inflammatory and immune disorders, and pulmonary and other conditions. The company's lead platform product includes MultiStem cell therapy, an allogeneic stem cell product, which is in Phase III clinical study for the treatment of patients suffering from neurological damage from an ischemic stroke, as well as in Phase II clinical study for the treatment of patients with acute myocardial infarction, and has completed Phase I clinical study for the treatment of patients suffering from leukemia or various other blood-borne cancers. It also develops MultiStem cell therapy to promote tissue repair and healing for animal patients, including those suffering from serious conditions with unmet medical needs. The company has license and collaboration agreements with Healios K.K. to develop and commercialize MultiStem cell therapy for ischemic stroke, acute respiratory distress syndrome, and ophthalmological indications, as well as for the treatment of liver, kidney, pancreas, and intestinal tissue diseases; and the University of Minnesota to develop MultiStem cell therapy platform. Athersys, Inc. was founded in 1995 and is headquartered in Cleveland, Ohio.

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