Comparing Alterity Therapeutics (NASDAQ:ATHE) & Supernus Pharmaceuticals (NASDAQ:SUPN)

Alterity Therapeutics (NASDAQ:ATHE) and Supernus Pharmaceuticals (NASDAQ:SUPN) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a summary of recent recommendations for Alterity Therapeutics and Supernus Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alterity Therapeutics	0	1	1	0	2.50
Supernus Pharmaceuticals	0	2	1	0	2.33

Alterity Therapeutics presently has a consensus target price of $12.00, indicating a potential upside of 196.30%. Supernus Pharmaceuticals has a consensus target price of $36.00, indicating a potential upside of 8.93%. Given Alterity Therapeutics’ stronger consensus rating and higher possible upside, research analysts clearly believe Alterity Therapeutics is more favorable than Supernus Pharmaceuticals.

Risk and Volatility

Alterity Therapeutics has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Supernus Pharmaceuticals has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Institutional and Insider Ownership

2.1% of Alterity Therapeutics shares are held by institutional investors. 38.8% of Alterity Therapeutics shares are held by insiders. Comparatively, 8.8% of Supernus Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Alterity Therapeutics and Supernus Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alterity Therapeutics	N/A	N/A	N/A
Supernus Pharmaceuticals	9.16%	7.79%	5.67%

Earnings & Valuation

This table compares Alterity Therapeutics and Supernus Pharmaceuticals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alterity Therapeutics	N/A	N/A	-$12.54 million	N/A	N/A
Supernus Pharmaceuticals	$668.00 million	2.77	$1.32 million	$1.11	29.77

Supernus Pharmaceuticals has higher revenue and earnings than Alterity Therapeutics.

Summary

Supernus Pharmaceuticals beats Alterity Therapeutics on 6 of the 10 factors compared between the two stocks.

About Alterity Therapeutics

Alterity Therapeutics Limited engages in the research and development of therapeutic drugs to treat Alzheimer’s disease, Huntington disease, Parkinson’s disease, and other neurological disorders in Australia. The company’s lead drug candidate is ATH434 that is in Phase I clinical trial for the treatment of Parkinson’s disease. It is also developing ATH434-201, which is in Phase II clinical trial to treat multiple system atrophy early stage; ATH434-202 that is in Phase II clinical trial to treat multiple system atrophy advance; and PBT2 that has completed Phase 2a clinical trial to treat Alzheimer’s disease. The company was formerly known as Prana Biotechnology Limited and changed its name to Alterity Therapeutics Limited in April 2019. Alterity Therapeutics Limited was incorporated in 1997 and is headquartered in Melbourne, Australia.

About Supernus Pharmaceuticals

Supernus Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of products for the treatment of central nervous system (CNS) diseases in the United States. The company's commercial products are Trokendi XR, an extended release topiramate product indicated for the treatment of epilepsy, as well as for the prophylaxis of migraine headache; and Oxtellar XR, an extended release oxcarbazepine for the monotherapy treatment of partial onset seizures in adults and children between 6 to 17 years of age. It also offers comprise Qelbree, a novel non-stimulant indicated for the treatment of attention-deficit hyperactivity disorder (ADHD) in adults and pediatric patients 6 years and older; APOKYN for the acute intermittent treatment of hypomobility or off episodes in patients with advanced Parkinson's Disease (PD); XADAGO for treating levodopa/carbidopa in patients with PD experiencing off episodes; MYOBLOC, a Type B toxin product indicated for the treatment of cervical dystonia and sialorrhea in adults; GOCOVRI for the treatment of dyskinesia in patients with PD; and Osmolex ER for the treatment of Parkinson's disease and drug-induced extrapyramidal reaction in adult patients. In addition, the company's product candidates include SPN-830, a late-stage drug/device combination product candidate for the treatment of off episodes in PD patients; SPN-817, a novel first-in-class selective acetylcholinesterase inhibitor, which is in Phase II clinical trials for the treatment of epilepsy; SPN-820, a product candidate in Phase II clinical trials for treating resistant depression; SPN-443, a preclinical product for the treatment of ADHD/CNS; and SPN-446 for narcolepsy and SPN-448 for the treatment of CNS which is in discovery stage. It markets and sells its products through pharmaceutical wholesalers, specialty pharmacies, and distributors. Supernus Pharmaceuticals, Inc. was incorporated in 2005 and is headquartered in Rockville, Maryland.