Contrasting OptiNose (OPTN) & Xenon Pharmaceuticals (XENE)

OptiNose (NASDAQ: XENE) and Xenon Pharmaceuticals (NASDAQ:XENE) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Valuation & Earnings

This table compares OptiNose and Xenon Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OptiNose $47.50 million 11.78 -$48.90 million ($5.63) -2.41
Xenon Pharmaceuticals $310,000.00 813.89 -$30.70 million ($1.72) -7.62

Xenon Pharmaceuticals has lower revenue, but higher earnings than OptiNose. Xenon Pharmaceuticals is trading at a lower price-to-earnings ratio than OptiNose, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for OptiNose and Xenon Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OptiNose 0 0 5 0 3.00
Xenon Pharmaceuticals 0 0 2 0 3.00

OptiNose currently has a consensus price target of $29.60, indicating a potential upside of 118.13%. Xenon Pharmaceuticals has a consensus price target of $15.50, indicating a potential upside of 18.32%. Given OptiNose’s higher possible upside, analysts clearly believe OptiNose is more favorable than Xenon Pharmaceuticals.

Profitability

This table compares OptiNose and Xenon Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OptiNose N/A -138.32% -45.20%
Xenon Pharmaceuticals -9,872.67% -95.43% -55.94%

Institutional and Insider Ownership

46.8% of OptiNose shares are held by institutional investors. Comparatively, 47.3% of Xenon Pharmaceuticals shares are held by institutional investors. 67.8% of OptiNose shares are held by company insiders. Comparatively, 14.1% of Xenon Pharmaceuticals 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.

Summary

OptiNose beats Xenon Pharmaceuticals on 6 of the 11 factors compared between the two stocks.

OptiNose Company Profile

OptiNose, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of products for patients treated by ear, nose, and throat; and allergy specialists in the United States. The company offers XHANCE, a therapeutic product utilizing its proprietary optinose exhalation delivery system that delivers a topically-acting and potent anti-inflammatory corticosteroid for the treatment of chronic rhinosinusitis with and without nasal polyps. It also markets Onzetra Xsail (AVP-825) for the acute treatment of migraines in adults through its license agreement with Avanir Pharmaceuticals, Inc. In addition, the company is developing XHANCE for the treatment of chronic sinusitis; OPN-300 for the treatment of Prader-Willi syndrome, a rare genetic obesity disorder, as well as autism spectrum disorder; and OPN-021 for the treatment of narcolepsy or Parkinson diseases. Further, it is involved in developing antibiotics, anticholinergics, antihistamines, mucolytics, leukotriene inhibitors, and other medication classes. OptiNose, Inc. was founded in 2010 and is headquartered in Yardley, Pennsylvania.

Xenon Pharmaceuticals Company Profile

Xenon Pharmaceuticals Inc., a clinical-stage biopharmaceutical company, engages in developing therapeutics to treat patients with neurological disorders in Canada. The company uses Extreme Genetics, a core enabling discovery platform for the discovery of validated drug targets by studying rare human diseases with extreme traits, including diseases caused by mutations in ion channels, known as channelopathies. It clinical development pipeline includes XEN1101, a Kv7 potassium channel opener for the treatment of epilepsy comprising treatment-resistant adult and pediatric focal seizures, rare and pediatric forms of epilepsy, and other neurological disorders; and XEN901, a selective Nav1.6 sodium channel inhibitor for the treatment of epilepsy. The company also develops GDC-0310 that completed Phase I clinical trials for the treatment of pain; and XEN007, a central nervous system (CNS)-acting calcium channel blocker that directly modulates Cav2.1, which is a critical calcium channel implicated in the pathophysiology of hemiplegic migraine, a rare and debilitating neurological disorder. Xenon Pharmaceuticals Inc. has collaboration agreements with Genentech, Inc. and Merck & Co., Inc. The company was founded in 1996 and is headquartered in Burnaby, Canada.

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