Ultragenyx Pharmaceutical (NASDAQ: RARE) and Verastem (NASDAQ:VSTM) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.
Insider and Institutional Ownership
96.0% of Ultragenyx Pharmaceutical shares are held by institutional investors. Comparatively, 25.6% of Verastem shares are held by institutional investors. 8.4% of Ultragenyx Pharmaceutical shares are held by insiders. Comparatively, 7.1% of Verastem shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
Ultragenyx Pharmaceutical has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500. Comparatively, Verastem has a beta of 2.28, meaning that its stock price is 128% more volatile than the S&P 500.
This is a summary of current ratings and price targets for Ultragenyx Pharmaceutical and Verastem, as reported by MarketBeat.
||Strong Buy Ratings
Ultragenyx Pharmaceutical presently has a consensus target price of $71.26, suggesting a potential downside of 12.89%. Verastem has a consensus target price of $12.19, suggesting a potential upside of 62.50%. Given Verastem’s stronger consensus rating and higher probable upside, analysts plainly believe Verastem is more favorable than Ultragenyx Pharmaceutical.
Earnings & Valuation
This table compares Ultragenyx Pharmaceutical and Verastem’s revenue, earnings per share and valuation.
||Earnings Per Share
Verastem has lower revenue, but higher earnings than Ultragenyx Pharmaceutical. Ultragenyx Pharmaceutical is trading at a lower price-to-earnings ratio than Verastem, indicating that it is currently the more affordable of the two stocks.
This table compares Ultragenyx Pharmaceutical and Verastem’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
About Ultragenyx Pharmaceutical
Ultragenyx Pharmaceutical Inc., a biopharmaceutical company, focuses on the identification, acquisition, development, and commercialization of various products for the treatment of rare and ultra-rare genetic diseases in the United States. Its biologics product candidate includes Mepsevii, an enzyme replacement therapy for the treatment of children and adults with Mucopolysaccharidosis VII. The company is developing various biologics product candidates, including Burosumab, a human monoclonal antibody that is in Phase III study to bind and reduce the biological activity of fibroblast growth factor 23 to enhance abnormally low phosphate levels in patients with X-linked hypophosphatemia, as well as for the treatment of tumor-induced osteomalacia. It is also developing a range of small-molecule product candidates, such as UX007, a substrate replacement therapy that completed Phase II study for patients with fatty acid oxidation disorders, as well as for patients with glucose transporter type-1 deficiency syndrome. In addition, the company is developing adeno-associated virus 8 (AAV8) gene therapy products comprising DTX301, an AAV8 for the treatment of OTC deficiency; DTX401, an AAV8 gene therapy program for the treatment of patients with GSDIa; and DTX201, a FVIII gene therapy program for the treatment of hemophilia A. It has a collaboration agreement with Rentschler Fill Solutions GmbH. Ultragenyx Pharmaceutical Inc. was founded in 2010 and is headquartered in Novato, California.
Verastem, Inc., a biopharmaceutical company, focuses on developing and commercializing drugs for the treatment of cancer. Its programs target the focal adhesion kinase (FAK) and the phosphoinositide 3-kinase (PI3K) signaling pathways. The company's lead FAK inhibitor is defactinib, an orally available candidate for combination therapy with immuno-oncology agents and other anti-cancer compounds. Its defactinib is in Phase 1b study for the treatment of pancreatic cancer, as well as in Phase 1/2 clinical trial for the treatment of ovarian cancer, non-small cell lung cancer, mesothelioma, and pancreatic cancer. The company also engages in developing duvelisib, an investigational oral therapy that targets the PI3K signaling pathway, as well as attacks malignant B-cells and T-cells and disrupt the tumor microenvironment to help thwart their growth and proliferation for patients with hematologic cancers through the dual inhibition of PI3K delta and gamma. Its duvelisib is in Phase 3 randomized and late-and mid-stage clinical trials for the treatment of patients with relapsed or refractory chronic lymphocytic leukemia or small lymphocytic lymphoma, as well as completed the Phase 2 study for the treatment of patients with double-refractory indolent non-Hodgkin lymphoma. The company has license agreements with Infinity Pharmaceuticals, Inc.; and Pfizer, Inc. Verastem, Inc. was founded in 2010 and is headquartered in Needham, Massachusetts.
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