Achillion Pharmaceuticals (ACHN) vs. KemPharm (KMPH) Head-To-Head Survey

Achillion Pharmaceuticals (NASDAQ: ACHN) and KemPharm (NASDAQ:KMPH) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Valuation and Earnings

This table compares Achillion Pharmaceuticals and KemPharm’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Achillion Pharmaceuticals $15.00 million 26.10 -$85.23 million ($0.62) -4.56
KemPharm N/A N/A -$43.38 million ($2.96) -2.20

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Achillion Pharmaceuticals and KemPharm, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Achillion Pharmaceuticals 0 4 3 0 2.43
KemPharm 0 0 5 0 3.00

Achillion Pharmaceuticals presently has a consensus price target of $5.00, suggesting a potential upside of 76.68%. KemPharm has a consensus price target of $12.00, suggesting a potential upside of 84.62%. Given KemPharm’s stronger consensus rating and higher probable upside, analysts clearly believe KemPharm is more favorable than Achillion Pharmaceuticals.

Volatility & Risk

Achillion Pharmaceuticals has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, KemPharm has a beta of -0.19, suggesting that its stock price is 119% less volatile than the S&P 500.

Profitability

This table compares Achillion Pharmaceuticals and KemPharm’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Achillion Pharmaceuticals N/A -25.57% -24.65%
KemPharm N/A N/A -77.95%

Institutional & Insider Ownership

80.7% of Achillion Pharmaceuticals shares are owned by institutional investors. Comparatively, 36.5% of KemPharm shares are owned by institutional investors. 6.3% of Achillion Pharmaceuticals shares are owned by company insiders. Comparatively, 25.9% of KemPharm shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

KemPharm beats Achillion Pharmaceuticals on 7 of the 12 factors compared between the two stocks.

Achillion Pharmaceuticals Company Profile

Achillion Pharmaceuticals, Inc., a biopharmaceutical company, discovers, develops, and commercializes small molecule drug therapies for immune system disorders in the United States. Its lead drug candidate includes ACH-4471, an inhibitor of factor D that is Phase II clinical trials for patients with paroxysmal nocturnal hemoglobinuria and C3 glomerulopathy. The company is also developing ACH-5228, a factor D inhibitor that is in Phase I clinical trial; ACH-5548, a factor D inhibitor; and other factor D inhibitors. It has license agreements with GCA Therapeutics, Ltd and Ora, Inc., as well as a collaboration arrangement with Janssen Pharmaceuticals Inc. to develop and commercialize drug candidates for the treatment of chronic hepatitis C virus. The company was founded in 1998 and is headquartered in New Haven, Connecticut.

KemPharm Company Profile

KemPharm, Inc., a specialty pharmaceutical company, discovers and develops various proprietary prodrugs in the United States. The company's lead product candidates include KP415 and KP484, which are extended release prodrugs of methylphenidate for the treatment of attention deficit hyperactivity disorder. It also provides APADAZ, an immediate-release (IR) combination product candidate of benzhydrocodone and acetaminophen to treat the short-term management of acute pain. In addition, the company develops KP201/IR, an acetaminophen-free immediate-release formulation of APADAZ for treating short-term management of acute pain; and KP511/ER and KP511/IR hydromorphone product candidates for the treatment of pain. Further, it is developing KP606, a prodrug of oxycodone for the management of moderate to severe pain; KP746, a prodrug of oxymorphone for the management of moderate to severe pain; and KP303, a prodrug of quetiapine for the treatment of central nervous system disorders. The company was founded in 2006 and is headquartered in Coralville, Iowa.

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