Merck & Co., Inc. (NYSE:MRK – Get Free Report) and Karyopharm Therapeutics (NASDAQ:KPTI – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.
Profitability
This table compares Merck & Co., Inc. and Karyopharm Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Merck & Co., Inc. | 4.77% | 16.73% | 6.13% |
| Karyopharm Therapeutics | -153.28% | N/A | -145.18% |
Earnings and Valuation
This table compares Merck & Co., Inc. and Karyopharm Therapeutics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Merck & Co., Inc. | $65.01 billion | 5.39 | $18.25 billion | $1.25 | 113.58 |
| Karyopharm Therapeutics | $146.07 million | 0.07 | -$196.04 million | ($13.09) | -0.03 |
Merck & Co., Inc. has higher revenue and earnings than Karyopharm Therapeutics. Karyopharm Therapeutics is trading at a lower price-to-earnings ratio than Merck & Co., Inc., indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Merck & Co., Inc. and Karyopharm Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Merck & Co., Inc. | 0 | 10 | 17 | 0 | 2.63 |
| Karyopharm Therapeutics | 1 | 2 | 3 | 1 | 2.57 |
Merck & Co., Inc. presently has a consensus target price of $151.92, indicating a potential upside of 7.01%. Karyopharm Therapeutics has a consensus target price of $11.50, indicating a potential upside of 2,590.69%. Given Karyopharm Therapeutics’ higher possible upside, analysts clearly believe Karyopharm Therapeutics is more favorable than Merck & Co., Inc..
Volatility and Risk
Merck & Co., Inc. has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500. Comparatively, Karyopharm Therapeutics has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.
Insider & Institutional Ownership
76.1% of Merck & Co., Inc. shares are held by institutional investors. Comparatively, 66.4% of Karyopharm Therapeutics shares are held by institutional investors. 0.2% of Merck & Co., Inc. shares are held by company insiders. Comparatively, 1.7% of Karyopharm Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Merck & Co., Inc. beats Karyopharm Therapeutics on 11 of the 15 factors compared between the two stocks.
About Merck & Co., Inc.
Merck & Co., Inc. is a health care company, which engages in the provision of health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. It operates through the following segments: Pharmaceutical, Animal Health, and Other. The Pharmaceutical segment includes human health pharmaceutical and vaccine products. The Animal Health segment discovers, develops, manufactures, and markets animal health products, such as pharmaceutical and vaccine products, for the prevention, treatment and control of disease in livestock, and companion animal species. The Other segment consists of sales for the non-reportable segments of healthcare services. The company was founded in 1891 and is headquartered in Rahway, NJ.
About Karyopharm Therapeutics
Karyopharm Therapeutics Inc., a commercial-stage pharmaceutical company, discovers, develops, and commercializes drugs directed against nuclear export for the treatment of cancer and other diseases in the United States. The company discovers, develops, and commercializes novel and small molecule Selective Inhibitor of Nuclear Export (SINE) compounds that inhibit the nuclear export protein exportin 1 (XPO1). Its lead compound, include XPOVIO in combination with bortezomib and dexamethasone for the treatment of adult patients with multiple myeloma; in combination with dexamethasone for the treatment of adult patients with relapsed or refractory multiple myeloma; and for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL). It also developing Selinexor for treating hematological and solid tumor malignancies, including multiple myeloma, endometrial cancer, myelofibrosis, and DLBCL; and ELTANEXOR for treating Myelodysplastic Neoplasms, as well as verdinexor, KPT-9274, and IL-12 compounds. The company has license agreement with Menarini Group to develop and commercialize selinexor for human oncology indications; license agreement with Antengene Therapeutics Limited to develop and commercialize selinexor, eltanexor, and KPT-9274 for the treatment and/or prevention of human oncology indications, as well as verdinexor for the diagnosis, treatment, and/or prevention of human non-oncology indications; and distribution agreement for the commercialization of XPOVIO with FORUS Therapeutics Inc. Further, it has a collaboration with Bristol Myers Squibb company to evaluate novel cereblon E3 ligase modulator agent mezigdomide in combination with Selinexor in patients with relapsed/refractory multiple myeloma. Karyopharm Therapeutics Inc. was incorporated in 2008 and is headquartered in Newton, Massachusetts.
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