Head-To-Head Contrast: BioMarin Pharmaceutical (BMRN) & Sierra Oncology (SRRA)

BioMarin Pharmaceutical (NASDAQ: BMRN) and Sierra Oncology (NASDAQ:SRRA) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for BioMarin Pharmaceutical and Sierra Oncology, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BioMarin Pharmaceutical 0 4 15 1 2.85
Sierra Oncology 0 0 1 0 3.00

BioMarin Pharmaceutical currently has a consensus target price of $113.58, suggesting a potential upside of 20.57%. Given BioMarin Pharmaceutical’s higher possible upside, analysts plainly believe BioMarin Pharmaceutical is more favorable than Sierra Oncology.

Profitability

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

Net Margins Return on Equity Return on Assets
BioMarin Pharmaceutical -10.48% -3.01% -1.89%
Sierra Oncology N/A -38.45% -36.40%

Risk & Volatility

BioMarin Pharmaceutical has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500. Comparatively, Sierra Oncology has a beta of 2.55, meaning that its stock price is 155% more volatile than the S&P 500.

Institutional & Insider Ownership

66.7% of Sierra Oncology shares are held by institutional investors. 1.9% of BioMarin Pharmaceutical shares are held by company insiders. Comparatively, 5.6% of Sierra Oncology 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.

Earnings and Valuation

This table compares BioMarin Pharmaceutical and Sierra Oncology’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BioMarin Pharmaceutical $1.31 billion 12.67 -$117.04 million ($0.67) -140.60
Sierra Oncology N/A N/A -$42.01 million ($0.84) -3.52

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

Summary

BioMarin Pharmaceutical beats Sierra Oncology on 7 of the 13 factors compared between the two stocks.

About BioMarin Pharmaceutical

BioMarin Pharmaceutical, Inc., a biotechnology company, develops and commercializes therapies for people with serious and life-threatening rare diseases and medical conditions. Its commercial products include Aldurazyme that is used for the treatment of patients with mucopolysaccharidosis I, a genetic disease; Brineura for the treatment of late infantile neuronal ceroid lipofuscinosis type 2, a form of Batten disease; and Firdapse for Lambert Eaton Myasthenic Syndrome. The company's commercial products also comprise Kuvan, a proprietary synthetic oral form of 6R-BH4 that is used to treat patients with phenylketonuria, an inherited metabolic disease; Naglazyme, a recombinant form of N-acetylgalactosamine 4-sulfatase for patients with mucopolysaccharidosis VI; and Vimizim, an enzyme replacement therapy for the treatment of MPS IV A, a lysosomal storage disorder. Its clinical and pre-clinical product pipeline includes pegvaliase, an enzyme substitution therapy for the treatment of phenylketonuria; vosoritide, a peptide therapeutic for the treatment of achondroplasia, a form of disproportionate short stature in humans; valoctocogene roxaparvovec, an AAV5 vector and factor VIII gene therapy drug development candidate for the treatment of severe hemophilia A; BMN 250, an investigational enzyme replacement therapy for the treatment of Sanfilippo Syndrome Type B or mucopolysaccharidosis type IIIB; and BMN 290, a selective chromatin modulation therapy for the treatment of Friedreich's ataxia. The company serves specialty pharmacies; and end-users, such as hospitals and foreign government agencies, as well as distributors and pharmaceutical wholesalers in the United States, Europe, Latin America, and internationally. BioMarin Pharmaceutical Inc. has collaboration agreements with Sarepta Therapeutics and Genzyme Corporation; and a license agreement with Asubio Pharma Co., Ltd. The company was founded in 1996 and is headquartered in San Rafael, California.

About Sierra Oncology

Sierra Oncology, Inc., a clinical stage drug development company, researches, develops, and commercializes DNA Damage Response (DDR) therapeutics for the treatment of patients with cancer in the United States and internationally. The company's lead drug candidate is SRA737, an orally bioavailable small molecule inhibitor of Checkpoint kinase 1, which is in Phase 1 clinical trial to treat patients with advanced cancer. It also engages in developing SRA141, an orally bioavailable small molecule inhibitor of the cell division cycle 7 kinase that is in preclinical development stage. The company was formerly known as ProNAi Therapeutics, Inc. and changed its name to Sierra Oncology, Inc. in January 2017. Sierra Oncology, Inc. was founded in 2003 and is headquartered in Vancouver, Canada.

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