Head to Head Analysis: Alkermes (NASDAQ:ALKS) & Opus Genetics (NASDAQ:IRD)

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

Earnings & Valuation

This table compares Alkermes and Opus Genetics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alkermes	$1.48 billion	5.10	$241.66 million	$0.38	118.04
Opus Genetics	$9.86 million	30.61	-$49.59 million	($1.35)	-2.70

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

Institutional & Insider Ownership

95.2% of Alkermes shares are held by institutional investors. Comparatively, 15.0% of Opus Genetics shares are held by institutional investors. 4.6% of Alkermes shares are held by insiders. Comparatively, 11.7% of Opus Genetics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alkermes	3.96%	4.15%	2.19%
Opus Genetics	-1,091.82%	N/A	-150.13%

Volatility and Risk

Alkermes has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, Opus Genetics has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Alkermes and Opus Genetics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alkermes	1	5	11	1	2.67
Opus Genetics	1	1	16	1	2.89

Alkermes presently has a consensus price target of $54.38, indicating a potential upside of 21.22%. Opus Genetics has a consensus price target of $12.71, indicating a potential upside of 248.34%. Given Opus Genetics’ stronger consensus rating and higher possible upside, analysts plainly believe Opus Genetics is more favorable than Alkermes.

Summary

Alkermes beats Opus Genetics on 8 of the 14 factors compared between the two stocks.

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.

About Opus Genetics

Opus Genetics Inc. is a clinical-stage ophthalmic biopharmaceutical company, focuses on developing and commercializing therapies for the treatment of unmet needs of patients with refractive and retinal eye disorders. Opus Genetics Inc., formerly known as Ocuphire Pharma Inc., is based in Farmington Hills, Michigan.