Reviewing Alexion Pharmaceuticals (ALXN) and BioMarin Pharmaceutical (NASDAQ:BMRN)

Alexion Pharmaceuticals (NASDAQ: ALXN) and BioMarin Pharmaceutical (NASDAQ:BMRN) are both large-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Profitability

This table compares Alexion Pharmaceuticals and BioMarin Pharmaceutical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alexion Pharmaceuticals 14.57% 12.55% 8.25%
BioMarin Pharmaceutical -12.45% -4.60% -3.09%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Alexion Pharmaceuticals and BioMarin Pharmaceutical, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alexion Pharmaceuticals 0 5 16 1 2.82
BioMarin Pharmaceutical 0 6 16 0 2.73

Alexion Pharmaceuticals presently has a consensus target price of $155.48, indicating a potential upside of 35.00%. BioMarin Pharmaceutical has a consensus target price of $113.52, indicating a potential upside of 38.39%. Given BioMarin Pharmaceutical’s higher possible upside, analysts plainly believe BioMarin Pharmaceutical is more favorable than Alexion Pharmaceuticals.

Institutional & Insider Ownership

94.6% of Alexion Pharmaceuticals shares are owned by institutional investors. Comparatively, 97.4% of BioMarin Pharmaceutical shares are owned by institutional investors. 4.4% of Alexion Pharmaceuticals shares are owned by insiders. Comparatively, 1.9% of BioMarin Pharmaceutical shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Alexion Pharmaceuticals has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, BioMarin Pharmaceutical has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500.

Earnings & Valuation

This table compares Alexion Pharmaceuticals and BioMarin Pharmaceutical’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Alexion Pharmaceuticals $3.08 billion 8.34 $399.00 million $2.24 51.42
BioMarin Pharmaceutical $1.12 billion 12.90 -$630.21 million ($0.90) -91.14

Alexion Pharmaceuticals has higher revenue and earnings than BioMarin Pharmaceutical. BioMarin Pharmaceutical is trading at a lower price-to-earnings ratio than Alexion Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Summary

Alexion Pharmaceuticals beats BioMarin Pharmaceutical on 9 of the 13 factors compared between the two stocks.

About Alexion Pharmaceuticals

Alexion Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of therapeutic products. The Company’s products include Soliris (eculizumab), Strensiq (asfotase alfa) and Kanuma (sebelipase alfa). The Company’s clinical development programs include Soliris (eculizumab), cPMP (ALXN1101), SBC-103, ALXN1210 (IV) and ALXN1210 (Subcutaneous). Its Soliris is the therapeutic approved for patients with either paroxysmal nocturnal hemoglobinuria (PNH) or hemolytic uremic syndrome (aHUS). PNH and aHUS result from chronic uncontrolled activation of the complement component of the immune system. Its Strensiq is for the treatment of patients with Hypophosphatasia (HPP). Its product, Kanuma is for the treatment of patients with Lysosomal Acid Lipase Deficiency (LAL-D). It is a recombinant form of the human LAL enzyme, which is a replacement therapy that is approved for the treatment for patients with LAL-D.

About BioMarin Pharmaceutical

BioMarin Pharmaceutical Inc. is a biotechnology company. The Company develops and commercializes pharmaceuticals for various diseases and medical conditions. As of December 31, 2016, the Company’s therapy portfolio consisted of five products, and multiple clinical and pre-clinical product candidates. Its commercial products include Aldurazyme (laronidase) for Mucopolysaccharidosis I (MPS I), Firdapse (amifampridine phosphate) for Lambert Eaton Myasthenic Syndrome (LEMS), Kuvan (sapropterin dihydrochloride) for phenylketonuria (PKU), Naglazyme (galsulfase) for Mucopolysaccharidosis VI (MPS VI) and Vimizim (elosulfase alpha) for Mucopolysaccharidosis IV Type A (MPS IV A). The Company is conducting clinical trials on various product candidates for the treatment of various diseases. Its clinical product candidates include Brineura, pegvaliase, vosoritide, BMN 270 and BMN 250.

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