Sarepta Therapeutics (NASDAQ:SRPT – Get Free Report) and United Therapeutics (NASDAQ:UTHR – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.
Profitability
This table compares Sarepta Therapeutics and United Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sarepta Therapeutics | -13.48% | -1.60% | -0.66% |
| United Therapeutics | 41.56% | 20.18% | 17.98% |
Volatility & Risk
Sarepta Therapeutics has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, United Therapeutics has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sarepta Therapeutics | 7 | 7 | 7 | 0 | 2.00 |
| United Therapeutics | 1 | 2 | 11 | 0 | 2.71 |
Sarepta Therapeutics presently has a consensus target price of $22.71, suggesting a potential upside of 29.75%. United Therapeutics has a consensus target price of $621.00, suggesting a potential upside of 14.64%. Given Sarepta Therapeutics’ higher possible upside, equities research analysts plainly believe Sarepta Therapeutics is more favorable than United Therapeutics.
Insider & Institutional Ownership
86.7% of Sarepta Therapeutics shares are owned by institutional investors. Comparatively, 94.1% of United Therapeutics shares are owned by institutional investors. 6.9% of Sarepta Therapeutics shares are owned by company insiders. Comparatively, 8.6% of United Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Sarepta Therapeutics and United Therapeutics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sarepta Therapeutics | $2.20 billion | 0.84 | -$713.41 million | ($2.90) | -6.03 |
| United Therapeutics | $3.18 billion | 7.30 | $1.33 billion | $27.95 | 19.38 |
United Therapeutics has higher revenue and earnings than Sarepta Therapeutics. Sarepta Therapeutics is trading at a lower price-to-earnings ratio than United Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
United Therapeutics beats Sarepta Therapeutics on 13 of the 14 factors compared between the two stocks.
About Sarepta Therapeutics
Sarepta Therapeutics, Inc., a commercial-stage biopharmaceutical company, focuses on the discovery and development of RNA-targeted therapeutics, gene therapies, and other genetic therapeutic modalities for the treatment of rare diseases. It offers EXONDYS 51 injection to treat duchenne muscular dystrophy (duchenne) in patients with confirmed mutation of the dystrophin gene that is amenable to exon 51 skipping; VYONDYS 53 for the treatment of duchenne in patients with confirmed mutation of the dystrophin gene that is amenable to exon 53 skipping; AMONDYS 45 for the treatment of duchenne in patients with confirmed mutation of the dystrophin gene; and ELEVIDYS, an adeno-associated virus based gene therapy for the treatment of ambulatory pediatric patients aged 4 through 5 years with duchenne with a confirmed mutation in the duchenne gene. The company is also developing SRP-5051, a peptide conjugated PMO that binds exon 51 of dystrophin pre-mRNA; and SRP-9003, a limb-girdle muscular dystrophies gene therapy program. It has collaboration and license agreements with F. Hoffman-La Roche Ltd; Nationwide Children's Hospital; Genevant Sciences; University of Florida; Dyno Therapeutics; Hansa Biopharma; Duke University; Genethon; and StrideBio. The company was incorporated in 1980 and is headquartered in Cambridge, Massachusetts.
About United Therapeutics
United Therapeutics Corporation, a biotechnology company, engages in the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally. The company offers Tyvaso DPI, an inhaled dry powder via pre-filled and single-use cartridges; Tyvaso, an inhaled solution via ultrasonic nebulizer; Remodulin (treprostinil) injection to treat patients with pulmonary arterial hypertension (PAH) to diminish symptoms associated with exercise; Orenitram, a tablet dosage form of treprostinil, to delay disease progression and improve exercise capacity in PAH patients; and Adcirca, an oral PDE-5 inhibitor to enhance the exercise ability in PAH patients. It also markets and sells Unituxin (dinutuximab) injection, a monoclonal antibody for treating high-risk neuroblastoma; and Remunity Pump, which contains a pump and separate controller for Remodulin. In addition, the company engages in developing RemoPro and Ralinepag for the treatment of PAH; Aurora-GT, a gene therapy product to rebuild the blood vessels in the lungs; and Nebulized Tyvaso, for the treatment of idiopathic pulmonary fibrosis, as well as xenografts, which are development-stage organ products. It has licensing and collaboration agreements with DEKA Research & Development Corp. to develop a semi-disposable system for the subcutaneous delivery of treprostinil; MannKind Corporation to develop and license treprostinil inhalation powder and the Dreamboat device; and Arena Pharmaceuticals, Inc. to develop Ralinepag. The company was incorporated in 1996 and is headquartered in Silver Spring, Maryland.
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