Deciphera Pharmaceuticals (NASDAQ:DCPH) and Chimerix (NASDAQ:CMRX) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.
Volatility & Risk
Deciphera Pharmaceuticals has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, Chimerix has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500.
Institutional and Insider Ownership
73.6% of Deciphera Pharmaceuticals shares are owned by institutional investors. Comparatively, 45.4% of Chimerix shares are owned by institutional investors. 7.0% of Deciphera Pharmaceuticals shares are owned by insiders. Comparatively, 9.0% of Chimerix shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Deciphera Pharmaceuticals and Chimerix's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Deciphera Pharmaceuticals | $25 million | 104.72 | $-192,260,000.00 | ($4.48) | -10.14 |
Chimerix | $12.52 million | 55.36 | $-112,580,000.00 | ($0.86) | -9.41 |
Chimerix has lower revenue, but higher earnings than Deciphera Pharmaceuticals. Deciphera Pharmaceuticals is trading at a lower price-to-earnings ratio than Chimerix, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Deciphera Pharmaceuticals and Chimerix, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Deciphera Pharmaceuticals | 0 | 3 | 7 | 0 | 2.70 |
Chimerix | 0 | 0 | 4 | 0 | 3.00 |
Deciphera Pharmaceuticals currently has a consensus target price of $70.30, indicating a potential upside of 54.74%. Chimerix has a consensus target price of $18.00, indicating a potential upside of 123.33%. Given Chimerix's stronger consensus rating and higher possible upside, analysts clearly believe Chimerix is more favorable than Deciphera Pharmaceuticals.
Profitability
This table compares Deciphera Pharmaceuticals and Chimerix's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Deciphera Pharmaceuticals | N/A | -45.02% | -40.12% |
Chimerix | -321.31% | -36.57% | -33.53% |
Summary
Chimerix beats Deciphera Pharmaceuticals on 8 of the 14 factors compared between the two stocks.