Critical Review: Arvinas (NASDAQ:ARVN) vs. Pharming Group (OTCMKTS:PHGUF)

Arvinas (NASDAQ:ARVN) and Pharming Group (OTCMKTS:PHGUF) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Profitability

This table compares Arvinas and Pharming Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arvinas	-19.47%	-12.01%	-6.97%
Pharming Group	-2.19%	-3.31%	-1.78%

Analyst Ratings

This is a summary of recent ratings for Arvinas and Pharming Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arvinas	2	10	10	1	2.43
Pharming Group	0	0	0	0	0.00

Arvinas presently has a consensus price target of $16.18, indicating a potential upside of 67.71%. Given Arvinas’ stronger consensus rating and higher probable upside, analysts plainly believe Arvinas is more favorable than Pharming Group.

Earnings & Valuation

This table compares Arvinas and Pharming Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arvinas	$263.40 million	2.69	-$198.90 million	($1.01)	-9.55
Pharming Group	$297.20 million	3.39	-$11.84 million	N/A	N/A

Pharming Group has higher revenue and earnings than Arvinas.

Insider & Institutional Ownership

95.2% of Arvinas shares are held by institutional investors. 4.7% of Arvinas shares are held 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.

Volatility and Risk

Arvinas has a beta of 2.39, meaning that its share price is 139% more volatile than the S&P 500. Comparatively, Pharming Group has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Summary

Arvinas beats Pharming Group on 7 of the 13 factors compared between the two stocks.

About Arvinas

Arvinas, Inc., a clinical-stage biotechnology company, engages in the discovery, development, and commercialization of therapies to degrade disease-causing proteins. The company engineers proteolysis targeting chimeras (PROTAC) targeted protein degraders that are designed to harness the body’s own natural protein disposal system to degrade and remove disease-causing proteins. Its product pipeline includes Bavdegalutamide and ARV-766, investigational orally bioavailable PROTAC protein degraders for the treatment of men with metastatic castration-resistant prostate cancer, which are in Phase 1/2 clinical trials; and ARV-471, an orally bioavailable estrogen receptor degrading PROTAC targeted protein degrader for the treatment of patients with locally advanced or metastatic estrogen receptor+/human epidermal growth factor receptor 2-breast cancer, which is Phase 3 clinical trial. Arvinas, Inc. has collaborations with Pfizer Inc., Genentech, Inc., F. Hoffman-La Roche Ltd., Carrick Therapeutics Limited, and Bayer AG. The company was founded in 2013 and is based in New Haven, Connecticut.

About Pharming Group

Pharming Group N.V., a biopharmaceutical company, develops and commercializes protein replacement therapies and precision medicines for the treatment of rare diseases in the United States, Europe, and internationally. The company offers RUCONEST, a recombinant C1 esterase inhibitor for the treatment of acute attacks in adult and adolescent patients with acute hereditary angioedema (HAE); and Joenja (leniolisib), an oral small molecule PI3K? inhibitor for the treatment of activated phosphoinositide 3-kinase delta syndrome. It also develops OTL-105, an investigational ex-vivo autologous hematopoietic stem cell gene therapy for the treatment of HAE. The company has a development collaboration and license agreement with Novartis; and a strategic collaboration agreement with Orchard Therapeutics plc for research, development, manufacturing, and commercialization of OTL-105. Pharming Group N.V. was incorporated in 1988 and is headquartered in Leiden, the Netherlands.