Auris Medical (NASDAQ:EARS) & Audentes Therapeutics (BOLD) Critical Review

Auris Medical (NASDAQ: EARS) and Audentes Therapeutics (NASDAQ:BOLD) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Institutional & Insider Ownership

18.8% of Auris Medical shares are held by institutional investors. Comparatively, 64.9% of Audentes Therapeutics shares are held by institutional investors. 47.3% of Audentes Therapeutics shares are held by 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 Auris Medical and Audentes Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Auris Medical N/A -343.01% -80.81%
Audentes Therapeutics N/A N/A -52.43%

Earnings & Valuation

This table compares Auris Medical and Audentes Therapeutics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Auris Medical N/A N/A -$31.13 million ($0.65) -0.51
Audentes Therapeutics N/A N/A -$59.66 million ($3.49) -9.17

Audentes Therapeutics is trading at a lower price-to-earnings ratio than Auris Medical, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Auris Medical has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500. Comparatively, Audentes Therapeutics has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Auris Medical and Audentes Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Auris Medical 0 0 2 0 3.00
Audentes Therapeutics 0 2 7 0 2.78

Auris Medical presently has a consensus price target of $4.50, suggesting a potential upside of 1,263.64%. Audentes Therapeutics has a consensus price target of $35.38, suggesting a potential upside of 10.51%. Given Auris Medical’s stronger consensus rating and higher probable upside, research analysts clearly believe Auris Medical is more favorable than Audentes Therapeutics.

Summary

Audentes Therapeutics beats Auris Medical on 6 of the 10 factors compared between the two stocks.

Auris Medical Company Profile

Auris Medical Holding AG is a holding and clinical-stage biopharmaceutical company focused on the development of products for the treatment of inner ear disorders. Its advanced product candidate, AM-101, is in Phase III clinical development for acute inner ear tinnitus under a special protocol assessment (SPA) from the United States Food and Drug Administration. Its second product candidate, AM-111, is being developed for the treatment of acute sensorineural hearing loss (ASNHL). It intends to conduct over two pivotal Phase III trials in the treatment of idiopathic sudden SNHL (ISSNHL), titled Acute Inner Ear Hearing Loss (HEALOS) and Acute Sudden Sensorineural Hearing Loss Treatment (ASSENT). AM-111 received orphan drug designation for the treatment of ASNHL from the United States Food and Drug Administration, and the European Union agency. It intends to conduct a Phase II trial in the treatment of surgery-induced hearing loss (REACH).

Audentes Therapeutics Company Profile

Audentes Therapeutics, Inc. is an early-stage biotechnology company. The Company is focused on developing and commercializing gene therapy products for patients suffering from serious, life-threatening rare diseases caused by single gene defects. The Company has a portfolio of product candidates, including AT132 for the treatment of X-Linked Myotubular Myopathy (XLMTM); AT342 for the treatment of Crigler-Najjar Syndrome (Crigler-Najjar); AT982 for the treatment of Pompe disease, and AT307 for the treatment of the CASQ2 subtype of Catecholaminergic Polymorphic Ventricular Tachycardia (CASQ2-CPVT). The Company’s subsidiary is Audentes Therapeutics UK Ltd. As of September 30, 2016, the Company had not generated any revenues.

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