Analyzing Heron Therapeutics (HRTX) and Icon (ICLR)

Heron Therapeutics (NASDAQ: HRTX) and Icon (NASDAQ:ICLR) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Insider & Institutional Ownership

98.8% of Heron Therapeutics shares are held by institutional investors. Comparatively, 89.7% of Icon shares are held by institutional investors. 19.9% of Heron Therapeutics shares are held by company insiders. Comparatively, 44.0% of Icon shares are held 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.

Earnings & Valuation

This table compares Heron Therapeutics and Icon’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Heron Therapeutics $1.28 million 1,092.65 -$173.14 million ($3.79) -5.71
Icon $1.67 billion 3.73 $262.17 million $5.15 22.27

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

Risk and Volatility

Heron Therapeutics has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500. Comparatively, Icon has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Profitability

This table compares Heron Therapeutics and Icon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heron Therapeutics -831.89% -385.11% -141.39%
Icon 16.37% 28.42% 15.06%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Heron Therapeutics and Icon, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heron Therapeutics 0 0 10 0 3.00
Icon 0 2 7 1 2.90

Heron Therapeutics presently has a consensus price target of $29.90, suggesting a potential upside of 38.11%. Icon has a consensus price target of $120.80, suggesting a potential upside of 5.31%. Given Heron Therapeutics’ stronger consensus rating and higher probable upside, research analysts plainly believe Heron Therapeutics is more favorable than Icon.

Summary

Icon beats Heron Therapeutics on 9 of the 15 factors compared between the two stocks.

About Heron Therapeutics

Heron Therapeutics, Inc. is a biotechnology company engaged in developing pharmaceutical products for patients suffering from cancer or pain. The Company’s product candidates include SUSTOL, HTX-019 and HTX-011. All of its product candidates utilize science and technology platforms, including its Biochronomer drug delivery technology. The Company’s SUSTOL (granisetron) injection, extended release is being developed for the prevention of both acute and delayed chemotherapy-induced nausea and vomiting (CINV) associated with moderately emetogenic chemotherapy (MEC) or highly emetogenic chemotherapy (HEC). HTX-019, which is an intravenous formulation of aprepitant, a neurokinin-1 (NK1) receptor antagonist, is being developed for the prevention of CINV. HTX-011, a long-acting formulation of the local anesthetic bupivacaine in a fixed-dose combination with the anti-inflammatory meloxicam, is being developed for the prevention of post-operative pain. HTX-011 is in Phase II clinical trials.

About Icon

ICON public limited company is a contract research organization (CRO), which is engaged in providing outsourced development services to the pharmaceutical, biotechnology and medical device industries. The Company is engaged in the strategic development, management and analysis of programs that support the various stages of the clinical development process, from compound selection to Phase I-IV clinical studies. Its services include clinical trials management, biometric activities, consulting, imaging, contract staffing, informatics and laboratory services. The Company’s information systems offerings include ICONIK, Firecrest, ADDPLAN, AptivAdvantage and Aptiv Insite. It conducts various laboratory tests on the patient’s blood, urine and other bodily fluids at appropriate intervals during the trial. The Company offers clinical development services, including investigator recruitment, patient registries, outcomes research, clinical data management, immunoassay development and others.

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