Arrowhead Pharmaceuticals (NASDAQ:ARWR) and NGM Biopharmaceuticals (NASDAQ:NGM) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.
Valuation & Earnings
This table compares Arrowhead Pharmaceuticals and NGM Biopharmaceuticals' 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 |
NGM Biopharmaceuticals | $103.54 million | 18.90 | $-42,790,000.00 | ($0.85) | -30.02 |
NGM Biopharmaceuticals has higher revenue and earnings than Arrowhead Pharmaceuticals. Arrowhead Pharmaceuticals is trading at a lower price-to-earnings ratio than NGM Biopharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
65.5% of Arrowhead Pharmaceuticals shares are held by institutional investors. Comparatively, 49.6% of NGM Biopharmaceuticals shares are held by institutional investors. 4.0% of Arrowhead Pharmaceuticals shares are held by company insiders. Comparatively, 50.4% of NGM Biopharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Arrowhead Pharmaceuticals and NGM Biopharmaceuticals' 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% |
NGM Biopharmaceuticals | -91.64% | -29.47% | -25.58% |
Risk & Volatility
Arrowhead Pharmaceuticals has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500. Comparatively, NGM Biopharmaceuticals has a beta of 1.97, indicating that its stock price is 97% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Arrowhead Pharmaceuticals and NGM Biopharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Arrowhead Pharmaceuticals | 0 | 2 | 10 | 0 | 2.83 |
NGM Biopharmaceuticals | 0 | 0 | 5 | 2 | 3.29 |
Arrowhead Pharmaceuticals currently has a consensus price target of $85.3077, indicating a potential upside of 26.27%. NGM Biopharmaceuticals has a consensus price target of $39.1111, indicating a potential upside of 53.26%. Given NGM Biopharmaceuticals' stronger consensus rating and higher possible upside, analysts clearly believe NGM Biopharmaceuticals is more favorable than Arrowhead Pharmaceuticals.
Summary
NGM Biopharmaceuticals beats Arrowhead Pharmaceuticals on 9 of the 15 factors compared between the two stocks.