Arrowhead Pharmaceuticals (NASDAQ:ARWR) and Kura Oncology (NASDAQ:KURA) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.
Risk and Volatility
Arrowhead Pharmaceuticals has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, Kura Oncology has a beta of 2.15, meaning that its stock price is 115% more volatile than the S&P 500.
Insider & Institutional Ownership
65.5% of Arrowhead Pharmaceuticals shares are held by institutional investors. Comparatively, 94.7% of Kura Oncology shares are held by institutional investors. 4.0% of Arrowhead Pharmaceuticals shares are held by insiders. Comparatively, 11.0% of Kura Oncology shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Arrowhead Pharmaceuticals and Kura Oncology's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Arrowhead Pharmaceuticals | $87.99 million | 79.69 | $-84,550,000.00 | ($0.84) | -80.43 |
Kura Oncology | N/A | N/A | $-63,140,000.00 | ($1.51) | -19.10 |
Kura Oncology has lower revenue, but higher earnings than Arrowhead Pharmaceuticals. Arrowhead Pharmaceuticals is trading at a lower price-to-earnings ratio than Kura Oncology, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Arrowhead Pharmaceuticals and Kura Oncology's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Arrowhead Pharmaceuticals | -96.09% | -17.37% | -15.19% |
Kura Oncology | N/A | -30.96% | -28.02% |
Analyst Ratings
This is a breakdown of current recommendations for Arrowhead Pharmaceuticals and Kura Oncology, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Arrowhead Pharmaceuticals | 0 | 2 | 10 | 0 | 2.83 |
Kura Oncology | 0 | 1 | 10 | 0 | 2.91 |
Arrowhead Pharmaceuticals presently has a consensus price target of $85.3077, suggesting a potential upside of 26.27%. Kura Oncology has a consensus price target of $39.5455, suggesting a potential upside of 37.12%. Given Kura Oncology's stronger consensus rating and higher possible upside, analysts plainly believe Kura Oncology is more favorable than Arrowhead Pharmaceuticals.
Summary
Kura Oncology beats Arrowhead Pharmaceuticals on 8 of the 12 factors compared between the two stocks.