Avadel Pharmaceuticals (NASDAQ: MCRB) and Seres Therapeutics (NASDAQ:MCRB) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.
Risk & Volatility
Avadel Pharmaceuticals has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500. Comparatively, Seres Therapeutics has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Avadel Pharmaceuticals and Seres Therapeutics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Avadel Pharmaceuticals presently has a consensus target price of $19.00, indicating a potential upside of 329.86%. Seres Therapeutics has a consensus target price of $19.25, indicating a potential upside of 146.48%. Given Avadel Pharmaceuticals’ higher possible upside, equities research analysts clearly believe Avadel Pharmaceuticals is more favorable than Seres Therapeutics.
Earnings & Valuation
This table compares Avadel Pharmaceuticals and Seres Therapeutics’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Avadel Pharmaceuticals||$172.74 million||0.94||$68.27 million||$0.31||14.26|
|Seres Therapeutics||$32.10 million||9.93||-$89.38 million||($2.21)||-3.53|
Avadel Pharmaceuticals has higher revenue and earnings than Seres Therapeutics. Seres Therapeutics is trading at a lower price-to-earnings ratio than Avadel Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
54.6% of Avadel Pharmaceuticals shares are owned by institutional investors. Comparatively, 78.0% of Seres Therapeutics shares are owned by institutional investors. 7.3% of Avadel Pharmaceuticals shares are owned by insiders. Comparatively, 37.1% of Seres Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Avadel Pharmaceuticals and Seres Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Avadel Pharmaceuticals beats Seres Therapeutics on 8 of the 13 factors compared between the two stocks.
About Avadel Pharmaceuticals
Avadel Pharmaceuticals plc develops and commercializes pharmaceutical products primarily for treating urology and sleep medicines in the United States, France, and Ireland. Its commercial products that are used in the hospital setting include Bloxiverz, a drug used in the operating room for the reversal of the effects of non-depolarizing neuromuscular blocking agents after surgery; Vazculep, a phenylephrine hydrochloride injection that is used for the treatment of hypotension occurring in the setting of anesthesia; and Akovaz, an ephedrine sulfate injection for treating hypotension, as well as Noctiva for treating nocturia due to nocturnal polyuria. The company owns and develops drug delivery platforms, such as Micropump, a microparticulate system that allows the development of modified and/or controlled release of solid and oral dosage formulations of drugs; LiquiTime, which allows development of modified/controlled release liquid suspension formulations; Trigger Lock that allows development of abuse-resistant modified/controlled release formulations of narcotic/opioid analgesics and other drugs susceptible to abuse; and Medusa, a hydrogel depot technology that allows the development of extended/modified release of injectable dosage formulations of drugs. Its product candidates also comprise REST-ON, which is in Phase III clinical trial for the treatment of daytime sleepiness and cataplexy in patients suffering from narcolepsy. The company was formerly known as Flamel Technologies SA and changed its name to Avadel Pharmaceuticals PLC in January 2017. The company was founded in 1990 and is headquartered in Dublin, Ireland.
About Seres Therapeutics
Seres Therapeutics, Inc., a microbiome therapeutics platform company, engages in developing biological drugs designed to restore health by repairing the function of a dysbiotic microbiome. Its lead product candidate is SER-109, a bacterial spore ecology, which is in Phase III clinical study to treat multiply recurrent Clostridium difficile infection (CDI). The company is also developing SER-287 that is in Phase Ib clinical study in patients with mild-to-moderate ulcerative colitis; and SER-262, a multi-strain Ecobiotic microbiome therapeutic candidate, which is in Phase Ib study in patients with primary CDI. In addition, its product candidates in pre-clinical development comprise SER-301, an Ecobiotic microbiome therapeutic candidate for the treatment of inflammatory bowel disease; SER-401 for use with checkpoint inhibitors in patients with solid tumors; and SER-155, an Ecobiotic microbiome therapeutic candidate for the prevention of transplant-related mortality. Seres Therapeutics, Inc. has a strategic collaboration with Nestle Health Science and Memorial Sloan Kettering Cancer Center. The company was formerly known as Seres Health, Inc. and changed its name to Seres Therapeutics, Inc. in May 2015. Seres Therapeutics, Inc. was founded in 2010 and is headquartered in Cambridge, Massachusetts.
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