Paratek Pharmaceuticals (NASDAQ:PRTK) and Merck & Co., Inc. (NYSE:MRK) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.
Profitability
This table compares Paratek Pharmaceuticals and Merck & Co., Inc.'s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Paratek Pharmaceuticals | -248.03% | N/A | -43.44% |
Merck & Co., Inc. | 24.33% | 53.83% | 16.83% |
Analyst Recommendations
This is a summary of recent recommendations for Paratek Pharmaceuticals and Merck & Co., Inc., as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Paratek Pharmaceuticals | 0 | 0 | 3 | 0 | 3.00 |
Merck & Co., Inc. | 0 | 2 | 12 | 0 | 2.86 |
Paratek Pharmaceuticals currently has a consensus price target of $17.00, indicating a potential upside of 113.57%. Merck & Co., Inc. has a consensus price target of $95.9167, indicating a potential upside of 25.69%. Given Paratek Pharmaceuticals' stronger consensus rating and higher probable upside, equities analysts clearly believe Paratek Pharmaceuticals is more favorable than Merck & Co., Inc..
Institutional & Insider Ownership
49.0% of Paratek Pharmaceuticals shares are owned by institutional investors. Comparatively, 72.9% of Merck & Co., Inc. shares are owned by institutional investors. 7.7% of Paratek Pharmaceuticals shares are owned by company insiders. Comparatively, 0.3% of Merck & Co., Inc. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Paratek Pharmaceuticals has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, Merck & Co., Inc. has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.
Earnings and Valuation
This table compares Paratek Pharmaceuticals and Merck & Co., Inc.'s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Paratek Pharmaceuticals | $16.54 million | 22.57 | $-128,790,000.00 | ($3.93) | -2.03 |
Merck & Co., Inc. | $46.84 billion | 4.12 | $9.84 billion | $5.19 | 14.70 |
Merck & Co., Inc. has higher revenue and earnings than Paratek Pharmaceuticals. Paratek Pharmaceuticals is trading at a lower price-to-earnings ratio than Merck & Co., Inc., indicating that it is currently the more affordable of the two stocks.
Summary
Merck & Co., Inc. beats Paratek Pharmaceuticals on 9 of the 14 factors compared between the two stocks.