Critical Survey: Nightstar Therapeutics (NITE) and Amgen (AMGN)

Nightstar Therapeutics (NASDAQ: NITE) and Amgen (NASDAQ:AMGN) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Insider and Institutional Ownership

29.7% of Nightstar Therapeutics shares are held by institutional investors. Comparatively, 78.3% of Amgen shares are held by institutional investors. 0.2% of Amgen shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Nightstar Therapeutics and Amgen’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nightstar Therapeutics N/A N/A -$29.68 million ($1.63) -9.84
Amgen $22.85 billion 5.30 $1.98 billion $12.58 14.55

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

Profitability

This table compares Nightstar Therapeutics and Amgen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nightstar Therapeutics N/A N/A N/A
Amgen 9.67% 35.80% 12.06%

Dividends

Amgen pays an annual dividend of $5.28 per share and has a dividend yield of 2.9%. Nightstar Therapeutics does not pay a dividend. Amgen pays out 42.0% of its earnings in the form of a dividend. Amgen has raised its dividend for 7 consecutive years.

Analyst Recommendations

This is a summary of current recommendations for Nightstar Therapeutics and Amgen, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nightstar Therapeutics 0 1 6 0 2.86
Amgen 0 10 10 0 2.50

Nightstar Therapeutics presently has a consensus price target of $28.50, indicating a potential upside of 77.68%. Amgen has a consensus price target of $195.59, indicating a potential upside of 6.87%. Given Nightstar Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Nightstar Therapeutics is more favorable than Amgen.

Summary

Amgen beats Nightstar Therapeutics on 12 of the 15 factors compared between the two stocks.

About Nightstar Therapeutics

Nightstar Therapeutics plc, a clinical-stage gene therapy company, focuses on developing and commercializing novel one-time treatments for patients suffering from rare inherited retinal diseases in the United Kingdom. The company's lead product candidate includes NSR-REP1, a candidate that has completed Phase 1/2 clinical trial for the treatment of patients with choroideremia. It is also developing NSR-RPGR, a candidate that is in Phase 1/2 clinical trial for the treatment of patients with X-linked retinitis pigmentosa, an inherited X-linked recessive retinal disease; and NSR-BEST1, a candidate that is in preclinical development stage for the treatment of best vitelliform macular dystrophy. The company was founded in 2013 and is headquartered in London, the United Kingdom.

About Amgen

Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. It offers products for the treatment of oncology/hematology, cardiovascular, inflammation, bone health, nephrology, and neuroscience. The company's products include Evenity to treat osteoporosis in postmenopausal women; Prolia to treat postmenopausal women with osteoporosis; Xgeva for skeletal-related events prevention; Repatha to treat coronary diseases; Enbrel to treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis; Parsabiv to treat secondary hyperparathyroidism (sHPT); and Aimovig for the prevention of migraine. Its products also comprise Blincyto to treat patients with Philadelphia chromosome-negative relapsed or refractory B-cell precursor acute lymphoblastic leukemia; Kyprolis, a proteasome inhibitor for the treatment of multiple myeloma and small-cell lung cancer; Nplate, a thrombopoietic compound. The company's marketed products include Neulasta, a pegylated protein to treat cancer patients; Aranesp to treat anemia; Sensipar/Mimpara products to treat sHPT in chronic kidney disease; EPOGEN to treat a lower-than-normal number of red blood cells; NEUPOGEN, a recombinant human granulocyte colony-stimulating factor; and IMLYGIC to treat various cancer cells. It serves pharmaceutical wholesale distributors; and physicians or their clinics, dialysis centers, hospitals, and pharmacies, as well as consumers. The company has collaborative agreements with Pfizer Inc.; UCB; Bayer HealthCare Pharmaceuticals Inc. Amgen Inc. was founded in 1980 and is headquartered in Thousand Oaks, California.

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