Dicerna Pharmaceuticals (NASDAQ:DRNA) and IVERIC bio (NASDAQ:ISEE) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.
Volatility and Risk
Dicerna Pharmaceuticals has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, IVERIC bio has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500.
Insider & Institutional Ownership
80.6% of Dicerna Pharmaceuticals shares are owned by institutional investors. Comparatively, 84.8% of IVERIC bio shares are owned by institutional investors. 11.3% of Dicerna Pharmaceuticals shares are owned by company insiders. Comparatively, 4.3% of IVERIC bio shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Dicerna Pharmaceuticals and IVERIC bio's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Dicerna Pharmaceuticals | -88.81% | -71.72% | -16.60% |
| IVERIC bio | N/A | -45.42% | -41.94% |
Analyst Recommendations
This is a breakdown of recent recommendations for Dicerna Pharmaceuticals and IVERIC bio, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Dicerna Pharmaceuticals | 0 | 0 | 6 | 0 | 3.00 |
| IVERIC bio | 0 | 1 | 1 | 0 | 2.50 |
Dicerna Pharmaceuticals currently has a consensus price target of $37.8333, suggesting a potential upside of 45.01%. IVERIC bio has a consensus price target of $13.00, suggesting a potential upside of 121.47%. Given IVERIC bio's higher possible upside, analysts plainly believe IVERIC bio is more favorable than Dicerna Pharmaceuticals.
Earnings and Valuation
This table compares Dicerna Pharmaceuticals and IVERIC bio's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Dicerna Pharmaceuticals | $23.90 million | 83.31 | $-120,460,000.00 | ($1.76) | -14.82 |
| IVERIC bio | N/A | N/A | $-58,860,000.00 | ($1.39) | -4.22 |
IVERIC bio has lower revenue, but higher earnings than Dicerna Pharmaceuticals. Dicerna Pharmaceuticals is trading at a lower price-to-earnings ratio than IVERIC bio, indicating that it is currently the more affordable of the two stocks.
Summary
IVERIC bio beats Dicerna Pharmaceuticals on 8 of the 13 factors compared between the two stocks.
