Arbutus Biopharma (NASDAQ:ABUS) versus PTC Therapeutics (NASDAQ:PTCT) Financial Review

Arbutus Biopharma (NASDAQ:ABUS) and PTC Therapeutics (NASDAQ:PTCT) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Profitability

This table compares Arbutus Biopharma and PTC Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arbutus Biopharma -856.96% N/A -52.07%
PTC Therapeutics -82.87% -105.54% -18.27%

Earnings & Valuation

This table compares Arbutus Biopharma and PTC Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arbutus Biopharma $6.91 million 62.71 -$63.74 million ($1.00) -4.37
PTC Therapeutics $380.77 million 8.08 -$438.16 million ($6.50) -6.70

Arbutus Biopharma has higher earnings, but lower revenue than PTC Therapeutics. PTC Therapeutics is trading at a lower price-to-earnings ratio than Arbutus Biopharma, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Arbutus Biopharma has a beta of 2.9, suggesting that its stock price is 190% more volatile than the S&P 500. Comparatively, PTC Therapeutics has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Arbutus Biopharma and PTC Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arbutus Biopharma 0 1 3 0 2.75
PTC Therapeutics 0 4 7 0 2.64

Arbutus Biopharma presently has a consensus target price of $6.75, indicating a potential upside of 54.46%. PTC Therapeutics has a consensus target price of $61.00, indicating a potential upside of 40.00%. Given Arbutus Biopharma’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Arbutus Biopharma is more favorable than PTC Therapeutics.

Institutional and Insider Ownership

28.8% of Arbutus Biopharma shares are owned by institutional investors. 6.4% of Arbutus Biopharma shares are owned by company insiders. Comparatively, 5.0% of PTC Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Arbutus Biopharma beats PTC Therapeutics on 10 of the 14 factors compared between the two stocks.

Arbutus Biopharma Company Profile

Arbutus Biopharma Corp. is a biopharmaceutical company. It engages in discovering, developing and commercializing a cure for patients suffering from chronic Hepatitis B virus infection. The company was founded in 2007 and is headquartered in Warminster, PA.

PTC Therapeutics Company Profile

PTC Therapeutics, Inc. is a biopharmaceutical company, which engages in the discovery and commercialization of clinically differentiated medicines. It focuses on the development of new treatments for multiple therapeutic areas, including rare diseases and oncology. The firm’s portfolio includes Translarna, Emflaza, Tegsedi, Waylivra, and Evrysdi. The company was founded by Allan Steven Jacobson and Stuart W. Peltz on March 31, 1998 and is headquartered in South Plainfield, NJ.

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