Critical Survey: Auxilium Pharmaceuticals (AUXL) vs. VIVUS (VVUS)

Auxilium Pharmaceuticals (NASDAQ: AUXL) and VIVUS (NASDAQ:VVUS) are both small-cap biopharmaceuticals companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Profitability

This table compares Auxilium Pharmaceuticals and VIVUS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Auxilium Pharmaceuticals -29.78% -76.75% -11.59%
VIVUS 26.71% 344.23% 12.56%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Auxilium Pharmaceuticals and VIVUS, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Auxilium Pharmaceuticals 0 0 0 0 N/A
VIVUS 0 0 0 0 N/A

Volatility and Risk

Auxilium Pharmaceuticals has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, VIVUS has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.

Earnings & Valuation

This table compares Auxilium Pharmaceuticals and VIVUS’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Auxilium Pharmaceuticals N/A N/A N/A ($3.27) -11.15
VIVUS $124.26 million 0.39 $23.30 million $0.33 1.38

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

Insider & Institutional Ownership

31.4% of VIVUS shares are held by institutional investors. 4.4% of VIVUS shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

VIVUS beats Auxilium Pharmaceuticals on 9 of the 9 factors compared between the two stocks.

Auxilium Pharmaceuticals Company Profile

Auxilium Pharmaceuticals, Inc. is a specialty biopharmaceutical company that focuses on developing and marketing products to predominantly specialist audiences. Its core therapeutic focus continues to be in the area of urology, with an anchor position in men’s healthcare. The company’s products include Testim (testosterone gel) and testosterone gel are indicated for testosterone replacement therapy in adult males for conditions associated with a deficiency or absence of endogenous testosterone; TESTOPEL offers men an option that provides a long-acting androgenic effect; Striant (testosterone buccal system) CIII is indicated for replacement therapy in adult males for conditions associated with a deficiency or absence of endogenous testosterone; STENDRA is a phosphodiesterase 5 (PDE5) inhibitor indicated for the treatment of erectile dysfunction; among others.

VIVUS Company Profile

VIVUS, Inc. is a biopharmaceutical company. The Company operates in the development and commercialization of therapeutic products segment. It provides over two therapies approved by the Food and Drug Association (FDA), which include Qsymia (phentermine and topiramate extended-release) for chronic weight management and STENDRA (avanafil) for erectile dysfunction (ED). The Company has completed the Phase II studies of Qsymia for the indication of Obstructive Sleep Apnea (OSA) and diabetes. Its Qsymia is available in over 40,000 certified retail pharmacies across the country. Its STENDRA is also approved by the European Commission (EC), under the name, SPEDRA, for the treatment of ED in the Europe. The United States Food and Drug Association approved a Supplemental New Drug Application (sNDA) for STENDRA. STENDRA is indicated to be taken approximately 15 minutes before sexual activity.

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