ACADIA Pharmaceuticals (NASDAQ: ACAD) and PAREXEL International Corporation (NASDAQ:PRXL) are both mid-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.
Earnings & Valuation
This table compares ACADIA Pharmaceuticals and PAREXEL International Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ACADIA Pharmaceuticals||$62.99 million||71.86||-$305.32 million||($2.53)||-14.62|
|PAREXEL International Corporation||$2.12 billion||2.12||$340.10 million||$2.09||42.10|
PAREXEL International Corporation has higher revenue and earnings than ACADIA Pharmaceuticals. ACADIA Pharmaceuticals is trading at a lower price-to-earnings ratio than PAREXEL International Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
ACADIA Pharmaceuticals has a beta of 3.9, indicating that its share price is 290% more volatile than the S&P 500. Comparatively, PAREXEL International Corporation has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.
This table compares ACADIA Pharmaceuticals and PAREXEL International Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|PAREXEL International Corporation||4.49%||28.98%||7.94%|
This is a breakdown of current recommendations for ACADIA Pharmaceuticals and PAREXEL International Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|PAREXEL International Corporation||1||9||2||0||2.08|
ACADIA Pharmaceuticals presently has a consensus target price of $44.17, indicating a potential upside of 19.43%. PAREXEL International Corporation has a consensus target price of $73.71, indicating a potential downside of 16.23%. Given ACADIA Pharmaceuticals’ stronger consensus rating and higher probable upside, equities research analysts plainly believe ACADIA Pharmaceuticals is more favorable than PAREXEL International Corporation.
Insider & Institutional Ownership
97.1% of ACADIA Pharmaceuticals shares are held by institutional investors. Comparatively, 87.5% of PAREXEL International Corporation shares are held by institutional investors. 22.3% of ACADIA Pharmaceuticals shares are held by insiders. Comparatively, 2.9% of PAREXEL International Corporation shares are held by 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.
ACADIA Pharmaceuticals beats PAREXEL International Corporation on 7 of the 13 factors compared between the two stocks.
About ACADIA Pharmaceuticals
ACADIA Pharmaceuticals Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of medicines for central nervous system (CNS) disorders. Its lead drug candidate, NUPLAZID (pimavanserin), is used for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis (PD Psychosis). NUPLAZID is a selective serotonin inverse agonist (SSIA), preferentially targeting 5-HT2A receptors. The Company is conducting a Phase II trial, referred to as the SERENE Study, designed to examine the efficacy and safety of pimavanserin as a treatment for Alzheimer’s disease (AD) Agitation. It is also conducting a Phase III, six-week, randomized, double-blind, placebo-controlled, multi-center, outpatient study, referred to as the ENHANCE-1 study, designed to examine the use of pimavanserin in patients with schizophrenia.
About PAREXEL International Corporation
PAREXEL International Corporation (PAREXEL) is a biopharmaceutical outsourcing services company. The Company provides a range of expertise in clinical research, clinical logistics, medical communications, consulting, commercialization, and technology products and services to pharmaceutical, biotechnology and medical device industries. Its segments include Clinical Research Services (CRS), PAREXEL Consulting Services (PC) and PAREXEL Informatics (PI). The CRS segment includes various phases of clinical research from first-in-man trials, where a medicinal entity is tested on human subjects for the first time, through post-marketing studies, following approval by the presiding regulatory body. The PC segment provides technical expertise and advice in areas, such as strategy, drug development, regulatory affairs, strategic compliance and targeted communications services in support of product launch. The Company’s PI segment provides information technology solutions.
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