Alexion Pharmaceuticals (NASDAQ:ALXN) and Infinity Pharmaceuticals (NASDAQ:INFI) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
Profitability
This table compares Alexion Pharmaceuticals and Infinity Pharmaceuticals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Alexion Pharmaceuticals | 16.32% | 23.16% | 14.76% |
Infinity Pharmaceuticals | -2,592.65% | -1,358.77% | -81.85% |
Institutional and Insider Ownership
87.3% of Alexion Pharmaceuticals shares are held by institutional investors. Comparatively, 46.7% of Infinity Pharmaceuticals shares are held by institutional investors. 4.0% of Alexion Pharmaceuticals shares are held by insiders. Comparatively, 13.8% of Infinity Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Alexion Pharmaceuticals and Infinity Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Alexion Pharmaceuticals | 0 | 17 | 4 | 1 | 2.27 |
Infinity Pharmaceuticals | 0 | 2 | 6 | 0 | 2.75 |
Alexion Pharmaceuticals presently has a consensus target price of $153.4286, indicating a potential downside of 7.87%. Infinity Pharmaceuticals has a consensus target price of $9.00, indicating a potential upside of 223.74%. Given Infinity Pharmaceuticals' stronger consensus rating and higher probable upside, analysts clearly believe Infinity Pharmaceuticals is more favorable than Alexion Pharmaceuticals.
Risk and Volatility
Alexion Pharmaceuticals has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, Infinity Pharmaceuticals has a beta of 2.4, meaning that its stock price is 140% more volatile than the S&P 500.
Earnings & Valuation
This table compares Alexion Pharmaceuticals and Infinity Pharmaceuticals' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Alexion Pharmaceuticals | $4.99 billion | 7.37 | $2.40 billion | $9.74 | 17.10 |
Infinity Pharmaceuticals | $3.05 million | 80.79 | $-47,060,000.00 | ($0.83) | -3.35 |
Alexion Pharmaceuticals has higher revenue and earnings than Infinity Pharmaceuticals. Infinity Pharmaceuticals is trading at a lower price-to-earnings ratio than Alexion Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Summary
Alexion Pharmaceuticals beats Infinity Pharmaceuticals on 9 of the 15 factors compared between the two stocks.