Evoke Pharma (EVOK) versus PTC Therapeutics (PTCT) Critical Review

PTC Therapeutics (NASDAQ:PTCT) and Evoke Pharma (NASDAQ:EVOK) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.

Valuation & Earnings

This table compares PTC Therapeutics and Evoke Pharma’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PTC Therapeutics $264.73 million 8.43 -$128.08 million ($1.84) -20.84
Evoke Pharma N/A N/A -$7.57 million ($0.46) -1.72

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

Risk & Volatility

PTC Therapeutics has a beta of 2.07, meaning that its stock price is 107% more volatile than the S&P 500. Comparatively, Evoke Pharma has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500.

Profitability

This table compares PTC Therapeutics and Evoke Pharma’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PTC Therapeutics -48.38% -31.63% -12.02%
Evoke Pharma N/A -166.95% -128.65%

Insider and Institutional Ownership

84.3% of PTC Therapeutics shares are held by institutional investors. Comparatively, 18.3% of Evoke Pharma shares are held by institutional investors. 7.5% of PTC Therapeutics shares are held by insiders. Comparatively, 13.2% of Evoke Pharma shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for PTC Therapeutics and Evoke Pharma, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PTC Therapeutics 0 3 6 0 2.67
Evoke Pharma 0 1 1 0 2.50

PTC Therapeutics presently has a consensus price target of $47.25, suggesting a potential upside of 23.21%. Evoke Pharma has a consensus price target of $3.17, suggesting a potential upside of 300.63%. Given Evoke Pharma’s higher probable upside, analysts plainly believe Evoke Pharma is more favorable than PTC Therapeutics.

Summary

PTC Therapeutics beats Evoke Pharma on 7 of the 12 factors compared between the two stocks.

PTC Therapeutics Company Profile

PTC Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of medicines for the treatment of rare disorders. The company offers Translarna (ataluren) and Emflaza (deflazacort) for the treatment of nonsense mutation Duchenne muscular dystrophy in ambulatory patients. It is developing Translarna, which is in Phase II clinical study for the treatment of nonsense mutation aniridia and nonsense mutation Dravet syndrome/CDKL5; and RG7916 and RO7034067 for the treatment of patients with spinal muscular atrophy, as well as PTC596 and PTC299, a small molecule dihydrooratate dehydrogenase (DHODH) inhibitor that inhibits de novo pyrimidine nucleotide synthesis, which is in Phase 1 clinical development stage to treat cancer patients. The company is also developing gene therapy product candidate that include PTC-AADC for the treatment of Aromatic L-amino acid decarboxylase deficiency. It has collaborations with F. Hoffman-La Roche Ltd and Hoffman-La Roche Inc., and the Spinal Muscular Atrophy Foundation to develop and commercialize compounds identified under its spinal muscular atrophy sponsored research program; research collaboration with Massachusetts General Hospital for the treatment of rare genetic disorders resulting from pre-mRNA; and Akcea Therapeutics, Inc. to commercialize Tegsedi and Waylivra for the treatment of rare diseases in Latin America and the Caribbean. PTC Therapeutics, Inc. was founded in 1998 and is headquartered in South Plainfield, New Jersey.

Evoke Pharma Company Profile

Evoke Pharma, Inc., a specialty pharmaceutical company, primarily focuses on the development of drugs for the treatment of gastroenterological disorders and diseases. It is developing Gimoti, a metoclopramide nasal spray, which is completed Phase III clinical trials for the relief of symptoms associated with acute and recurrent diabetic gastroparesis in women. The company was founded in 2007 and is headquartered in Solana Beach, California.

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