ACADIA Pharmaceuticals (NASDAQ:ACAD) and Akero Therapeutics (NASDAQ:AKRO) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.
Risk & Volatility
ACADIA Pharmaceuticals has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, Akero Therapeutics has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.
Profitability
This table compares ACADIA Pharmaceuticals and Akero Therapeutics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| ACADIA Pharmaceuticals | -63.92% | -40.35% | -34.72% |
| Akero Therapeutics | N/A | -40.84% | -38.33% |
Valuation & Earnings
This table compares ACADIA Pharmaceuticals and Akero Therapeutics' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| ACADIA Pharmaceuticals | $339.08 million | 9.93 | $-235,260,000.00 | ($1.60) | -13.14 |
| Akero Therapeutics | N/A | N/A | $-43,760,000.00 | ($2.90) | -9.21 |
Akero Therapeutics has lower revenue, but higher earnings than ACADIA Pharmaceuticals. ACADIA Pharmaceuticals is trading at a lower price-to-earnings ratio than Akero Therapeutics, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and target prices for ACADIA Pharmaceuticals and Akero Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| ACADIA Pharmaceuticals | 0 | 12 | 6 | 0 | 2.33 |
| Akero Therapeutics | 0 | 0 | 7 | 0 | 3.00 |
ACADIA Pharmaceuticals currently has a consensus price target of $31.4375, suggesting a potential upside of 49.56%. Akero Therapeutics has a consensus price target of $57.2857, suggesting a potential upside of 114.39%. Given Akero Therapeutics' stronger consensus rating and higher possible upside, analysts plainly believe Akero Therapeutics is more favorable than ACADIA Pharmaceuticals.
Insider & Institutional Ownership
93.5% of ACADIA Pharmaceuticals shares are owned by institutional investors. Comparatively, 83.5% of Akero Therapeutics shares are owned by institutional investors. 27.7% of ACADIA Pharmaceuticals shares are owned by insiders. Comparatively, 7.1% of Akero 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.
Summary
ACADIA Pharmaceuticals beats Akero Therapeutics on 8 of the 13 factors compared between the two stocks.
