Biohaven Pharmaceutical (NYSE:BHVN) and Mersana Therapeutics (NASDAQ:MRSN) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
Earnings and Valuation
This table compares Biohaven Pharmaceutical and Mersana Therapeutics' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Biohaven Pharmaceutical | N/A | N/A | $-528,800,000.00 | ($10.91) | -6.86 |
Mersana Therapeutics | $42.12 million | 28.10 | $-28,210,000.00 | ($0.65) | -26.37 |
Mersana Therapeutics has higher revenue and earnings than Biohaven Pharmaceutical. Mersana Therapeutics is trading at a lower price-to-earnings ratio than Biohaven Pharmaceutical, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Biohaven Pharmaceutical has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Mersana Therapeutics has a beta of 2.54, meaning that its share price is 154% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Biohaven Pharmaceutical and Mersana Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Biohaven Pharmaceutical | 0 | 2 | 10 | 0 | 2.83 |
Mersana Therapeutics | 0 | 2 | 5 | 0 | 2.71 |
Biohaven Pharmaceutical presently has a consensus price target of $96.4545, indicating a potential upside of 28.95%. Mersana Therapeutics has a consensus price target of $26.1667, indicating a potential upside of 52.66%. Given Mersana Therapeutics' higher probable upside, analysts plainly believe Mersana Therapeutics is more favorable than Biohaven Pharmaceutical.
Institutional and Insider Ownership
99.4% of Biohaven Pharmaceutical shares are owned by institutional investors. 19.1% of Biohaven Pharmaceutical shares are owned by company insiders. Comparatively, 5.3% of Mersana Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Biohaven Pharmaceutical and Mersana Therapeutics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Biohaven Pharmaceutical | N/A | -1,091.41% | -120.85% |
Mersana Therapeutics | -8,772.91% | -45.16% | -37.53% |
Summary
Mersana Therapeutics beats Biohaven Pharmaceutical on 7 of the 13 factors compared between the two stocks.