Head-To-Head Survey: Annexon (NASDAQ:ANNX) vs. Alkermes (NASDAQ:ALKS)

Annexon (NASDAQ:ANNX) and Alkermes (NASDAQ:ALKS) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Annexon and Alkermes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Annexon	N/A	-101.19%	-75.99%
Alkermes	9.78%	9.26%	5.66%

Valuation & Earnings

This table compares Annexon and Alkermes”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Annexon	N/A	N/A	-$206.69 million	($1.22)	-4.47
Alkermes	$1.48 billion	4.90	$241.66 million	$0.90	48.20

Alkermes has higher revenue and earnings than Annexon. Annexon is trading at a lower price-to-earnings ratio than Alkermes, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Annexon has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Alkermes has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.

Institutional and Insider Ownership

95.2% of Alkermes shares are owned by institutional investors. 10.3% of Annexon shares are owned by insiders. Comparatively, 4.6% of Alkermes shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Annexon and Alkermes, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Annexon	1	2	4	0	2.43
Alkermes	0	5	11	1	2.76

Annexon currently has a consensus price target of $16.00, suggesting a potential upside of 193.58%. Alkermes has a consensus price target of $45.40, suggesting a potential upside of 4.66%. Given Annexon’s higher possible upside, equities analysts clearly believe Annexon is more favorable than Alkermes.

Summary

Alkermes beats Annexon on 11 of the 14 factors compared between the two stocks.

About Annexon

Annexon, Inc., a clinical-stage biopharmaceutical company, discovers and develops medicines for treating inflammatory-related diseases. Its lead candidate is ANX005, an investigational full-length monoclonal antibody, which is in Phase 3 clinical trial for the treatment of patients with guillain-barré syndrome; completed Phase II clinical trial for treating Huntington's disease; and in Phase II clinical trial for the treatment of amyotrophic lateral sclerosis. The company is also developing ANX007, an antigen-binding fragment (Fab) that is in Phase 3 program for the treatment of patients with geographic atrophy; and ANX1502, a novel oral small molecule inhibitor, which is in Phase 1 clinical trials for autoimmune indications. In addition, it develops ANX009, a C1q-blocking Fab that is in Phase I clinical trial for treating patients with lupus nephritis. The company was incorporated in 2011 and is headquartered in Brisbane, California.

About Alkermes

Alkermes plc, a biopharmaceutical company, researches, develops, and commercializes pharmaceutical products to address unmet medical needs of patients in therapeutic areas in the United States, Ireland, and internationally. It has a portfolio of proprietary commercial products for the treatment of alcohol dependence, opioid dependence, schizophrenia and bipolar I disorder and a pipeline of clinical and preclinical product candidates in development for neurological disorders. Its marketed products include ARISTADA, an intramuscular injectable suspension for the treatment of schizophrenia; ARISTADA INITIO for the treatment of schizophrenia in adults; VIVITROL for the treatment of alcohol and prevention of opioid dependence; and LYBALVI, an oral atypical antipsychotic drug candidate for the treatment of adults with schizophrenia and bipolar I disorder. It has collaboration agreements primarily with Janssen Pharmaceutica N.V., Janssen Pharmaceutica Inc, and Janssen Pharmaceutica International. The company also offers proprietary technology platforms to third parties to enable them to develop, commercialize, and manufacture products. Alkermes plc was founded in 1987 and is headquartered in Dublin, Ireland.