Regeneron Pharmaceuticals (NASDAQ:REGN) and Acorda Therapeutics (NASDAQ:ACOR) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.
Institutional & Insider Ownership
85.0% of Regeneron Pharmaceuticals shares are held by institutional investors. 11.8% of Regeneron Pharmaceuticals shares are held by insiders. Comparatively, 6.8% of Acorda Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Regeneron Pharmaceuticals and Acorda Therapeutics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Regeneron Pharmaceuticals | 38.28% | 28.97% | 20.11% |
Acorda Therapeutics | 29.71% | -8.60% | -3.51% |
Volatility and Risk
Regeneron Pharmaceuticals has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, Acorda Therapeutics has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Regeneron Pharmaceuticals and Acorda Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Regeneron Pharmaceuticals | 0 | 6 | 15 | 1 | 2.77 |
Acorda Therapeutics | 0 | 2 | 0 | 0 | 2.00 |
Regeneron Pharmaceuticals presently has a consensus target price of $625.8077, suggesting a potential upside of 38.89%. Acorda Therapeutics has a consensus target price of $23.6667, suggesting a potential upside of 306.64%. Given Acorda Therapeutics' higher possible upside, analysts clearly believe Acorda Therapeutics is more favorable than Regeneron Pharmaceuticals.
Valuation and Earnings
This table compares Regeneron Pharmaceuticals and Acorda Therapeutics' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Regeneron Pharmaceuticals | $7.86 billion | 6.14 | $2.12 billion | $21.47 | 20.99 |
Acorda Therapeutics | $192.41 million | 0.24 | $-272,970,000.00 | ($11.94) | -0.49 |
Regeneron Pharmaceuticals has higher revenue and earnings than Acorda Therapeutics. Acorda Therapeutics is trading at a lower price-to-earnings ratio than Regeneron Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Summary
Regeneron Pharmaceuticals beats Acorda Therapeutics on 13 of the 15 factors compared between the two stocks.