ACADIA Pharmaceuticals (NASDAQ:ACAD) and Stoke Therapeutics (NASDAQ:STOK) are both mid-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Profitability
This table compares ACADIA Pharmaceuticals and Stoke Therapeutics' 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% |
| Stoke Therapeutics | N/A | -22.93% | -22.26% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for ACADIA Pharmaceuticals and Stoke Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| ACADIA Pharmaceuticals | 0 | 1 | 14 | 1 | 3.00 |
| Stoke Therapeutics | 0 | 2 | 7 | 0 | 2.78 |
ACADIA Pharmaceuticals currently has a consensus target price of $61.25, indicating a potential upside of 25.80%. Stoke Therapeutics has a consensus target price of $62.1667, indicating a potential upside of 2.55%. Given ACADIA Pharmaceuticals' stronger consensus rating and higher possible upside, equities research analysts plainly believe ACADIA Pharmaceuticals is more favorable than Stoke Therapeutics.
Institutional & Insider Ownership
93.5% of ACADIA Pharmaceuticals shares are held by institutional investors. 27.7% of ACADIA Pharmaceuticals shares are held by insiders. Comparatively, 54.6% of Stoke Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares ACADIA Pharmaceuticals and Stoke Therapeutics' top-line 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 | 22.83 | $-235,260,000.00 | ($1.60) | -30.43 |
| Stoke Therapeutics | N/A | N/A | $-32,330,000.00 | ($1.80) | -33.68 |
Stoke Therapeutics has lower revenue, but higher earnings than ACADIA Pharmaceuticals. Stoke Therapeutics is trading at a lower price-to-earnings ratio than ACADIA Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
ACADIA Pharmaceuticals has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Stoke Therapeutics has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.
Summary
ACADIA Pharmaceuticals beats Stoke Therapeutics on 9 of the 14 factors compared between the two stocks.
