Strongbridge Biopharma (SBBP) and BioMarin Pharmaceutical (BMRN) Critical Contrast

Strongbridge Biopharma (NASDAQ: SBBP) and BioMarin Pharmaceutical (NASDAQ:BMRN) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.

Earnings & Valuation

This table compares Strongbridge Biopharma and BioMarin Pharmaceutical’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Strongbridge Biopharma N/A N/A -$48.59 million ($3.40) -2.00
BioMarin Pharmaceutical $1.12 billion 13.36 -$630.21 million ($0.83) -102.39

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

Profitability

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

Net Margins Return on Equity Return on Assets
Strongbridge Biopharma N/A -181.90% -38.62%
BioMarin Pharmaceutical -12.45% -4.60% -3.09%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Strongbridge Biopharma and BioMarin Pharmaceutical, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Strongbridge Biopharma 0 0 3 0 3.00
BioMarin Pharmaceutical 0 5 14 1 2.80

Strongbridge Biopharma presently has a consensus price target of $14.67, suggesting a potential upside of 115.69%. BioMarin Pharmaceutical has a consensus price target of $114.00, suggesting a potential upside of 34.15%. Given Strongbridge Biopharma’s stronger consensus rating and higher possible upside, analysts clearly believe Strongbridge Biopharma is more favorable than BioMarin Pharmaceutical.

Insider and Institutional Ownership

59.7% of Strongbridge Biopharma shares are held by institutional investors. Comparatively, 98.8% of BioMarin Pharmaceutical shares are held by institutional investors. 1.9% of BioMarin Pharmaceutical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Strongbridge Biopharma has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500. Comparatively, BioMarin Pharmaceutical has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.

Summary

BioMarin Pharmaceutical beats Strongbridge Biopharma on 8 of the 14 factors compared between the two stocks.

About Strongbridge Biopharma

Strongbridge Biopharma plc is a global commercial-stage biopharmaceutical company. The Company is focused on the development and commercialization of therapies for a range of diseases. The Company’s commercial product, KEVEYIS (dichlorphenamide), is indicated for the treatment of hyperkalemic, hypokalemic and related variants of primary periodic paralysis. The United States Food and Drug Administration (FDA) has granted orphan drug designation for KEVEYIS. The Company has a clinical-stage pipeline of therapies for endocrine diseases. The Company’s lead compounds include COR-003 (levoketoconazole), a cortisol synthesis inhibitor, and COR-005 (veldoreotide), a somatostatin analog (SSA). The Company is studying COR-003 for the treatment of endogenous Cushing’s syndrome. It is investigating COR-005 for the treatment of acromegaly. Both COR-003 and COR-005 have received orphan designation from the FDA and the European Medicines Agency (EMA).

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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