Akero Therapeutics (NASDAQ:AKRO – Get Free Report) and Ionis Pharmaceuticals (NASDAQ:IONS – Get Free Report) are both mid-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.
Insider & Institutional Ownership
93.9% of Ionis Pharmaceuticals shares are owned by institutional investors. 7.9% of Akero Therapeutics shares are owned by company insiders. Comparatively, 2.6% of Ionis Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Akero Therapeutics and Ionis Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Akero Therapeutics | N/A | -32.46% | -29.83% |
| Ionis Pharmaceuticals | -64.25% | -100.05% | -15.70% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Akero Therapeutics | 0 | 0 | 8 | 0 | 3.00 |
| Ionis Pharmaceuticals | 1 | 6 | 12 | 1 | 2.65 |
Akero Therapeutics presently has a consensus target price of $82.50, suggesting a potential upside of 61.92%. Ionis Pharmaceuticals has a consensus target price of $56.67, suggesting a potential upside of 62.28%. Given Ionis Pharmaceuticals’ higher probable upside, analysts clearly believe Ionis Pharmaceuticals is more favorable than Akero Therapeutics.
Risk and Volatility
Akero Therapeutics has a beta of -0.12, meaning that its stock price is 112% less volatile than the S&P 500. Comparatively, Ionis Pharmaceuticals has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500.
Valuation & Earnings
This table compares Akero Therapeutics and Ionis Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Akero Therapeutics | N/A | N/A | -$151.76 million | ($1.95) | -26.13 |
| Ionis Pharmaceuticals | $717.25 million | 7.75 | -$366.29 million | ($2.99) | -11.68 |
Akero Therapeutics has higher earnings, but lower revenue than Ionis Pharmaceuticals. Akero Therapeutics is trading at a lower price-to-earnings ratio than Ionis Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Summary
Ionis Pharmaceuticals beats Akero Therapeutics on 8 of the 14 factors compared between the two stocks.
About Akero Therapeutics
Akero Therapeutics, Inc., together with its subsidiary, engages in the development of treatments for patients with serious metabolic diseases in the United States. The company's lead product candidate is efruxifermin (EFX), which is in Phase 3 clinical trials that protects against cellular stress and regulates the metabolism of lipids, carbohydrates, and proteins throughout the body for the treatment of biopsy-confirmed metabolic dysfunction-associated steatohepatitis (MASH) patients. It has a license agreement with Amgen Inc. to develop, manufacture, use, distribute, and sell EFX as a treatment for MASH and other metabolic diseases. The company was formerly known as Pippin Pharmaceuticals, Inc. and changed its name to Akero Therapeutics, Inc. in May 2018. Akero Therapeutics, Inc. was incorporated in 2017 and is headquartered in South San Francisco, California.
About Ionis Pharmaceuticals
Ionis Pharmaceuticals, Inc. discovers and develops RNA-targeted therapeutics in the United States. The company offers SPINRAZA for spinal muscular atrophy (SMA) in pediatric and adult patients; TEGSEDI, an antisense injection for the treatment of polyneuropathy caused by hereditary transthyretin amyloidosis in adults; and WAYLIVRA, an antisense medicine for treatment for familial chylomicronemia syndrome (FCS) and familial partial lipodystrophy. It also develops medicines for various indications that are in phase 3 study, including Eplontersen as a monthly self-administered subcutaneous injection to treat all types of ATTR; Olezarsen for patients with FCS and severe hypertriglyceridemia (SHTG); Donidalorsen for patients with hereditary angioedema; ION363 for patients with amyotrophic lateral sclerosis; Tofersen to inhibit the production of superoxide dismutase 1; Pelacarsen for patients with established cardiovascular disease and elevated lipoprotein(a); and Bepirovirsen to inhibit the production of viral proteins associated with hepatitis B virus. In addition, the company develops IONIS-FB-LRx to inhibit the production of complement factor B and the alternative complement pathway; and ION224 to reduce the production of diacylglycerol acyltransferase 2. It has a strategic collaboration with Biogen for the treatment of neurological disorders; and collaboration and license agreement with Metagenomi, Inc, AstraZeneca, Bayer AG, GlaxoSmithKline plc, Novartis, Roche, Swedish Orphan Biovitrum AB, and PTC Therapeutics. The company was incorporated in 1989 and is based in Carlsbad, California.
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