Arena Pharmaceuticals (NASDAQ: ARNA) and GenVec (NASDAQ:GNVC) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.
Institutional and Insider Ownership
46.2% of Arena Pharmaceuticals shares are held by institutional investors. Comparatively, 6.2% of GenVec shares are held by institutional investors. 1.9% of Arena Pharmaceuticals shares are held by company insiders. Comparatively, 8.1% of GenVec shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Arena Pharmaceuticals and GenVec’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Arena Pharmaceuticals||$117.73 million||8.62||$16.71 million||($0.57)||-45.42|
Arena Pharmaceuticals has higher revenue and earnings than GenVec. Arena Pharmaceuticals is trading at a lower price-to-earnings ratio than GenVec, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Arena Pharmaceuticals and GenVec, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Arena Pharmaceuticals presently has a consensus target price of $38.83, indicating a potential upside of 49.99%. GenVec has a consensus target price of $7.00, indicating a potential downside of 2.68%. Given Arena Pharmaceuticals’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Arena Pharmaceuticals is more favorable than GenVec.
This table compares Arena Pharmaceuticals and GenVec’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Arena Pharmaceuticals has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, GenVec has a beta of 3.34, meaning that its share price is 234% more volatile than the S&P 500.
Arena Pharmaceuticals beats GenVec on 9 of the 11 factors compared between the two stocks.
Arena Pharmaceuticals Company Profile
Arena Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on developing small molecule drugs across a range of therapeutic areas. The Company has three primary investigational clinical programs: etrasimod (APD334) in Phase II evaluation for ulcerative colitis, APD371 entering Phase II evaluation for the treatment of pain associated with Crohn’s disease, and ralinepag (APD811) in Phase II evaluation for pulmonary arterial hypertension (PAH). The Company’s drug, Lorcaserin, is approved for marketing in the United States and South Korea for the indication of weight management. The Company’s drug candidates in clinical development include APD334 for autoimmune diseases, ralinepag for vascular diseases and APD371 for pain. The Company’s programs under collaboration include nelotanserin for dementia-associated psychosis, temanogrel for thrombotic diseases, and an undisclosed orphan GPCR for central nervous system (CNS) indication(s).
GenVec Company Profile
GenVec, Inc. (GenVec) is a clinical-stage biopharmaceutical company, engaged in the development of therapeutics and vaccines. The Company designs, tests and manufactures adenoviral-based product candidates. The Company’s development programs address therapeutic areas, such as hearing loss and balance disorders, as well as vaccines against infectious diseases, including respiratory syncytial virus (RSV), herpes simplex virus (HSV), Enterovirus D68 (EV-D68) and malaria. In the area of animal health, it is developing vaccines against foot-and-mouth disease (FMD). The Company develops and commercializes its product candidates through collaborations. The Company’s lead product candidate is CGF166. The Company’s vaccine candidates include preventative vaccines against RSV and malaria, and a therapeutic vaccine for HSV. The Company is developing vaccine and anti-viral candidates for the prevention and containment of FMD outbreaks.
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