Peregrine Pharmaceuticals (NASDAQ: PPHM) and VIVUS (NASDAQ:VVUS) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.
Insider and Institutional Ownership
86.8% of Peregrine Pharmaceuticals shares are owned by institutional investors. Comparatively, 35.5% of VIVUS shares are owned by institutional investors. 4.9% of Peregrine Pharmaceuticals shares are owned by company insiders. Comparatively, 3.0% of VIVUS shares are owned 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.
Risk and Volatility
Peregrine Pharmaceuticals has a beta of 2.43, indicating that its stock price is 143% more volatile than the S&P 500. Comparatively, VIVUS has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.
This table compares Peregrine Pharmaceuticals and VIVUS’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Peregrine Pharmaceuticals and VIVUS’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Peregrine Pharmaceuticals||$57.63 million||2.74||-$25.80 million||($0.93)||-3.76|
|VIVUS||$133.40 million||0.80||$67.14 million||$0.31||3.26|
VIVUS has higher revenue and earnings than Peregrine Pharmaceuticals. Peregrine Pharmaceuticals is trading at a lower price-to-earnings ratio than VIVUS, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for Peregrine Pharmaceuticals and VIVUS, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Peregrine Pharmaceuticals currently has a consensus target price of $5.25, suggesting a potential upside of 50.00%. Given Peregrine Pharmaceuticals’ higher possible upside, equities analysts plainly believe Peregrine Pharmaceuticals is more favorable than VIVUS.
About Peregrine Pharmaceuticals
Peregrine Pharmaceuticals, Inc. (Peregrine) is a biopharmaceutical company. The Company operates through two segments: Peregrine, which is engaged in the research and development of monoclonal antibodies for the treatment of cancer, and Avid, which is engaged in providing contract manufacturing services for third party customers on a fee-for-service basis while also supporting its internal drug development efforts. Bavituximab is its lead immunotherapy candidate. Bavituximab is a monoclonal antibody that targets and binds to phosphatidylserine (PS), a immunosuppressive molecule that is usually located inside the membrane of healthy cells, but then flips and becomes exposed on the outside of cells in the tumor microenvironment, causing the tumor to evade immune detection. The Company’s subsidiary is Avid Bioservices, Inc. (Avid). Avid provides integrated current good manufacturing practices (cGMP) services from cell line development to commercial biomanufacturing.
VIVUS, Inc. is a biopharmaceutical company. The Company operates in the development and commercialization of therapeutic products segment. It provides over two therapies approved by the Food and Drug Association (FDA), which include Qsymia (phentermine and topiramate extended-release) for chronic weight management and STENDRA (avanafil) for erectile dysfunction (ED). The Company has completed the Phase II studies of Qsymia for the indication of Obstructive Sleep Apnea (OSA) and diabetes. Its Qsymia is available in over 40,000 certified retail pharmacies across the country. Its STENDRA is also approved by the European Commission (EC), under the name, SPEDRA, for the treatment of ED in the Europe. The United States Food and Drug Association approved a Supplemental New Drug Application (sNDA) for STENDRA. STENDRA is indicated to be taken approximately 15 minutes before sexual activity.
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