Puma Biotechnology (NASDAQ:PBYI) and Aurinia Pharmaceuticals (NASDAQ:AUPH) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.
Profitability
This table compares Puma Biotechnology and Aurinia Pharmaceuticals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Puma Biotechnology | -23.86% | -451.50% | -22.80% |
| Aurinia Pharmaceuticals | -173,992.23% | -36.98% | -31.06% |
Valuation and Earnings
This table compares Puma Biotechnology and Aurinia Pharmaceuticals' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Puma Biotechnology | $272.30 million | 1.49 | $-75,600,000.00 | ($1.95) | -5.16 |
| Aurinia Pharmaceuticals | $320,000.00 | 4,918.81 | $-123,850,000.00 | ($0.89) | -13.88 |
Puma Biotechnology has higher revenue and earnings than Aurinia Pharmaceuticals. Aurinia Pharmaceuticals is trading at a lower price-to-earnings ratio than Puma Biotechnology, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Puma Biotechnology and Aurinia Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Puma Biotechnology | 1 | 4 | 1 | 0 | 2.00 |
| Aurinia Pharmaceuticals | 0 | 1 | 7 | 0 | 2.88 |
Puma Biotechnology currently has a consensus price target of $12.50, indicating a potential upside of 24.13%. Aurinia Pharmaceuticals has a consensus price target of $28.50, indicating a potential upside of 130.77%. Given Aurinia Pharmaceuticals' stronger consensus rating and higher probable upside, analysts plainly believe Aurinia Pharmaceuticals is more favorable than Puma Biotechnology.
Insider and Institutional Ownership
87.9% of Puma Biotechnology shares are owned by institutional investors. Comparatively, 51.2% of Aurinia Pharmaceuticals shares are owned by institutional investors. 21.2% of Puma Biotechnology shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility & Risk
Puma Biotechnology has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Aurinia Pharmaceuticals has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.
Summary
Puma Biotechnology beats Aurinia Pharmaceuticals on 8 of the 14 factors compared between the two stocks.
