Nektar Therapeutics (NKTR) versus Athenex (ATNX) Critical Survey

Nektar Therapeutics (NASDAQ:NKTR) and Athenex (NASDAQ:ATNX) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Institutional and Insider Ownership

92.7% of Nektar Therapeutics shares are owned by institutional investors. Comparatively, 20.0% of Athenex shares are owned by institutional investors. 4.3% of Nektar Therapeutics shares are owned by insiders. Comparatively, 29.5% of Athenex shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Nektar Therapeutics and Athenex’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nektar Therapeutics $30.71 million 224.64 -$96.69 million ($0.55) -72.73
Athenex $38.04 million 21.55 -$131.17 million ($2.32) -5.29

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

Profitability

This table compares Nektar Therapeutics and Athenex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nektar Therapeutics 65.69% 174.70% 93.63%
Athenex -122.29% -73.37% -53.72%

Volatility & Risk

Nektar Therapeutics has a beta of 2.91, indicating that its stock price is 191% more volatile than the S&P 500. Comparatively, Athenex has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Nektar Therapeutics and Athenex, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nektar Therapeutics 0 1 10 0 2.91
Athenex 0 1 3 0 2.75

Nektar Therapeutics presently has a consensus target price of $85.10, indicating a potential upside of 112.75%. Athenex has a consensus target price of $25.00, indicating a potential upside of 103.75%. Given Nektar Therapeutics’ stronger consensus rating and higher possible upside, equities analysts clearly believe Nektar Therapeutics is more favorable than Athenex.

Summary

Nektar Therapeutics beats Athenex on 11 of the 14 factors compared between the two stocks.

Nektar Therapeutics Company Profile

Nektar Therapeutics, a research-based biopharmaceutical company, discovers and develops drug candidates for cancer, auto-immune disease, and chronic pain in the United States. The company offers ONZEALD, a topoisomerase I inhibitor that is in Phase III clinical trial for advanced metastatic breast cancer in patients with brain metastases; NKTR-181, an orally-available mu-opioid analgesic molecule, which is in Phase III clinical trial for moderate to severe chronic pain; NKTR-214, a cytokine immunostimulatory therapy that is in Phase I/II to treat cancer; NKTR-358, which is in Phase I to treat autoimmune diseases; and NKTR-262 for solid tumors, as well as NKTR-255 that is under research/preclinical stage for immuno-oncology. It is also developing MOVANTIK for opioid-induced constipation in adult patients with chronic non-cancer pain, and who have an inadequate response to laxatives; ADYNOVATE for hemophilia A; Somavert to treat acromegaly; and Neulasta for treating neutropenia. In addition, the company develops PEG-INTRON for the treatment of hepatitis-C; Macugen for age-related macular degeneration; CIMZIA to treat rheumatoid arthritis, Crohn's disease, and psoriasis/ankylosing spondylitis; and MIRCERA for anemia related to chronic kidney disease in patients on and not on dialysis. Further, it is developing SEMPRANA to treat migraine; dapirolizumab pegol for systemic lupus erythematosus; PEGPH20 for ancreatic, non-small cell lung cancer, and other tumor types; and longer-acting blood clotting proteins for hemophilia. The company has collaboration agreement with AstraZeneca AB, Shire plc, Pfizer Inc., Amgen Inc., Merck & Co., Inc., Valeant Pharmaceuticals International, Inc., UCB Pharma S.A., F. Hoffmann-La Roche Ltd, Allergan, Inc., Halozyme Therapeutics, Inc., Baxalta Incorporated, Bristol-Myers Squibb Company, and Takeda Pharmaceutical Company Limited. The company was founded in 1990 and is headquartered in San Francisco, California.

Athenex Company Profile

Athenex, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of various therapies for the treatment of cancer and related conditions. The company's Orascovery product candidates include Oraxol, an oral dosage form, which is in Phase III trial for metastatic breast cancer, as well as various clinical studies in advanced malignances and gastric cancer; and Oratecan, an oral dosage form of irinotecan that is in a Phase I study for the treatment of metastatic colorectal cancer, glioblastoma, lung, ovarian, cervical, upper gastrointestinal, and pancreatic cancer. Its Orascovery product candidates also comprise Oradoxel, an oral dosage form of docetaxel, which is in Phase I clinical study for breast, lung, prostate, gastric, and head and neck cancers; Oratopo, an oral dosage form of topotecan that is under development to treat lung, ovarian, and cervical cancer; and oral eribulin co-administered with HM30181A that is under pre-clinical development to treat certain patients with breast cancer and advanced liposarcom. In addition, the company offers Src Kinase product candidates comprising KX-01, a compound, which is in Phase 3 study for the treatment of actinic keratosis; and KX-02 that is Phase I clinical trial for solid tumor patients. Further, it is developing intranasal formulations of granisetron, a 5-hydroxytryptamine 3 receptor antagonist to prevent chemotherapy-induced nausea and vomiting; and dual absorption enhancers to inhibit the P-gp transporter and the cytochrome P450 enzymes within the gastrointestinal tract. The company was formerly known as Kinex Pharmaceuticals LLC and changed its name to Athenex, Inc. in August 2015. Athenex, Inc. has a strategic partnership with Hanmi Pharmaceuticals to develop their Orascovery and KX-01 programs. The company was founded in 2003 and is headquartered in Buffalo, New York.

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