Ardelyx (ARDX) versus Imprimis Pharmaceuticals (NASDAQ:IMMY) Critical Survey

Ardelyx (NASDAQ: ARDX) and Imprimis Pharmaceuticals (NASDAQ:IMMY) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Earnings & Valuation

This table compares Ardelyx and Imprimis Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ardelyx $24.03 million 11.37 -$112.38 million ($2.23) -2.58
Imprimis Pharmaceuticals $19.94 million 1.67 -$19.08 million ($0.92) -1.76

Imprimis Pharmaceuticals has lower revenue, but higher earnings than Ardelyx. Ardelyx is trading at a lower price-to-earnings ratio than Imprimis Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Ardelyx has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, Imprimis Pharmaceuticals has a beta of -0.27, suggesting that its stock price is 127% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Ardelyx and Imprimis Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ardelyx 0 0 6 0 3.00
Imprimis Pharmaceuticals 0 0 1 0 3.00

Ardelyx presently has a consensus target price of $13.67, suggesting a potential upside of 137.68%. Imprimis Pharmaceuticals has a consensus target price of $5.00, suggesting a potential upside of 208.64%. Given Imprimis Pharmaceuticals’ higher probable upside, analysts plainly believe Imprimis Pharmaceuticals is more favorable than Ardelyx.

Profitability

This table compares Ardelyx and Imprimis Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ardelyx N/A -66.87% -59.72%
Imprimis Pharmaceuticals -60.71% -264.98% -57.30%

Institutional and Insider Ownership

74.8% of Ardelyx shares are held by institutional investors. Comparatively, 12.9% of Imprimis Pharmaceuticals shares are held by institutional investors. 15.5% of Ardelyx shares are held by insiders. Comparatively, 12.6% of Imprimis Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Ardelyx beats Imprimis Pharmaceuticals on 8 of the 13 factors compared between the two stocks.

About Ardelyx

Ardelyx, Inc. is a clinical-stage biopharmaceutical company. The Company’s therapeutics focuses on addressing cardiorenal and gastrointestinal (GI) diseases. It operates through the research, development and commercialization of biopharmaceutical products segment. The Company’s products line includes cardiorenal portfolio and gastrointestinal portfolio. The Company’s cardiorenal portfolio includes two Phase III clinical product candidates, tenapanor in Phase III clinical development for treating hyperphosphatemia in end-stage renal disease (ESRD) patients on dialysis and RDX7675 in Phase III clinical development for treating hyperkalemia in chronic kidney disease (CKD) and heart failure patients. The cardiorenal portfolio includes tenapanor, RDX7675, RDX013 and RDX011. Its gastrointestinal portfolio is led by tenapanor for the treatment of irritable bowel syndrome with constipation (IBS-C). The gastrointestinal portfolio includes tenapanor, RDX8940, RDX011 and RDX023.

About Imprimis Pharmaceuticals

Imprimis Pharmaceuticals, Inc. (Imprimis) is engaged in the development, production and dispensing of compounded pharmaceuticals. The Company operates through the business of developing drug therapies and providing such therapies through sterile and non-sterile pharmaceutical compounding services segment. The Company, through its Imprimis Cares program, owns, markets and dispenses a portfolio of compounded therapeutic in several therapeutic areas, including ophthalmology, urology, otolaryngology and infectious diseases. The Company is also developing Custom Compounding Choice business, which is focused on developing and dispensing a portfolio of non-proprietary compounded drugs for humans and animals in therapeutic areas that may be overlooked by commercial pharmaceutical companies. The Company also offers customizable compounding products that consist of sterile injectable and non-sterile integrative medicine therapies that are used in various therapeutic areas.

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