Avid Bioservices (CDMO) & United Therapeutics (UTHR) Critical Comparison

Avid Bioservices (NASDAQ:CDMO) and United Therapeutics (NASDAQ:UTHR) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.

Valuation and Earnings

This table compares Avid Bioservices and United Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avid Bioservices $53.62 million 4.49 -$21.81 million ($0.50) -8.58
United Therapeutics $1.63 billion 3.24 $589.20 million $13.39 9.02

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

Insider & Institutional Ownership

39.9% of Avid Bioservices shares are held by institutional investors. Comparatively, 96.5% of United Therapeutics shares are held by institutional investors. 0.9% of Avid Bioservices shares are held by company insiders. Comparatively, 8.2% of United Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Avid Bioservices and United Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avid Bioservices -3.52% -20.74% -13.57%
United Therapeutics 36.20% 22.63% 18.02%

Risk & Volatility

Avid Bioservices has a beta of 2.61, meaning that its share price is 161% more volatile than the S&P 500. Comparatively, United Therapeutics has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Avid Bioservices and United Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avid Bioservices 0 0 2 0 3.00
United Therapeutics 2 4 3 0 2.11

Avid Bioservices currently has a consensus price target of $10.50, indicating a potential upside of 144.76%. United Therapeutics has a consensus price target of $133.38, indicating a potential upside of 10.41%. Given Avid Bioservices’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Avid Bioservices is more favorable than United Therapeutics.

Summary

United Therapeutics beats Avid Bioservices on 10 of the 14 factors compared between the two stocks.

About Avid Bioservices

Avid Bioservices, Inc., a biologics contract development and manufacturing company, focuses on the development and current Good Manufacturing Practices (cGMP) manufacture of biopharmaceutical products derived from mammalian cell culture. It provides a range of process development, cGMP clinical, and commercial manufacturing services for the biotechnology and biopharmaceutical industries. The company produces monoclonal antibodies and recombinant proteins in batch, fed-batch, and perfusion modes; and offers services, including cGMP clinical and commercial product manufacturing, purification, bulk packaging, stability testing and regulatory strategy, submission, and support. It also provides various process development services, such as cell line development and optimization, cell culture and feed optimization, analytical methods development, and product characterization. The company was formerly known as Peregrine Pharmaceuticals, Inc. and changed its name to Avid Bioservices, Inc. in January 2018. Avid Bioservices, Inc. was founded in 1981 and is headquartered in Tustin, California.

About United Therapeutics

United Therapeutics Corporation, a biotechnology company, develops and commercializes products to address the unmet medical needs of patients with chronic and life-threatening diseases worldwide. The company's commercial products include Remodulin, a continuously-infused formulation of the prostacyclin analogue treprostinil for subcutaneous and intravenous administration to diminish symptoms associated with exercise in pulmonary arterial hypertension (PAH) patients; Tyvaso, an inhaled formulation of treprostinil to enhace the exercise ability in PAH patients; Orenitram, a tablet dosage form of treprostinil to enhance the exercise capacity in PAH patients; and Adcirca, an oral PDE-5 inhibitor to enhance the exercise ability in PAH patients. It also provides Unituxin for the treatment of pediatric patients with high-risk neuroblastoma who achieve a partial response to prior first-line multiagent multimodality therapy. In addition, the company develops implantable system for Remodulin; and the RemUnity system for delivery of intravenous and subcutaneous Remodulin; esuberaprost, RemoPro, and eNOS gene therapies for PAH; and organ transplantation-related technologies, including regenerative medicines, xenotransplantation, and ex-vivo lung perfusion. United Therapeutics Corporation has a licensing and collaboration agreement with MannKind Corporation for the development and commercialization of a dry powder formulation of treprostinil used for the treatment of pulmonary arterial hypertension; and a licensing and commercialization agreement with Collplant for 3D bioprinting of solid-organ scaffolds for human transplants. United Therapeutics Corporation was founded in 1996 and is headquartered in Silver Spring, Maryland.

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