ACADIA Pharmaceuticals (NASDAQ:ACAD) and Radius Health (NASDAQ:RDUS) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Earnings & Valuation
This table compares ACADIA Pharmaceuticals and Radius Health's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| ACADIA Pharmaceuticals | $339.08 million | 10.04 | $-235,260,000.00 | ($1.60) | -13.29 |
| Radius Health | $173.32 million | 5.31 | $-132,990,000.00 | ($2.89) | -6.79 |
Radius Health has lower revenue, but higher earnings than ACADIA Pharmaceuticals. ACADIA Pharmaceuticals is trading at a lower price-to-earnings ratio than Radius Health, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ACADIA Pharmaceuticals and Radius Health's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| ACADIA Pharmaceuticals | -63.92% | -40.35% | -34.72% |
| Radius Health | -48.61% | N/A | -56.85% |
Volatility & Risk
ACADIA Pharmaceuticals has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, Radius Health has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.
Institutional and Insider Ownership
93.5% of ACADIA Pharmaceuticals shares are owned by institutional investors. 27.7% of ACADIA Pharmaceuticals shares are owned by insiders. Comparatively, 2.9% of Radius Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings for ACADIA Pharmaceuticals and Radius Health, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| ACADIA Pharmaceuticals | 0 | 12 | 7 | 0 | 2.37 |
| Radius Health | 0 | 6 | 3 | 0 | 2.33 |
ACADIA Pharmaceuticals currently has a consensus price target of $32.7647, suggesting a potential upside of 54.04%. Radius Health has a consensus price target of $24.60, suggesting a potential upside of 25.45%. Given ACADIA Pharmaceuticals' stronger consensus rating and higher probable upside, equities analysts plainly believe ACADIA Pharmaceuticals is more favorable than Radius Health.
Summary
ACADIA Pharmaceuticals beats Radius Health on 10 of the 14 factors compared between the two stocks.
