Audentes Therapeutics (NASDAQ: XLRN) and Acceleron Pharma (NASDAQ:XLRN) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.

Risk and Volatility

Audentes Therapeutics has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Acceleron Pharma has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Audentes Therapeutics and Acceleron Pharma, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Audentes Therapeutics 0 3 8 0 2.73
Acceleron Pharma 0 6 7 0 2.54

Audentes Therapeutics presently has a consensus target price of $38.89, indicating a potential upside of 14.24%. Acceleron Pharma has a consensus target price of $51.50, indicating a potential upside of 3.37%. Given Audentes Therapeutics’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Audentes Therapeutics is more favorable than Acceleron Pharma.

Valuation and Earnings

This table compares Audentes Therapeutics and Acceleron Pharma’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Audentes Therapeutics N/A N/A -$90.23 million ($3.40) -10.01
Acceleron Pharma $13.48 million 170.01 -$108.45 million ($2.68) -18.59

Audentes Therapeutics has higher earnings, but lower revenue than Acceleron Pharma. Acceleron Pharma is trading at a lower price-to-earnings ratio than Audentes Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Audentes Therapeutics and Acceleron Pharma’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Audentes Therapeutics N/A N/A -38.04%
Acceleron Pharma -795.94% -30.78% -29.10%

Institutional and Insider Ownership

95.9% of Audentes Therapeutics shares are owned by institutional investors. Comparatively, 87.4% of Acceleron Pharma shares are owned by institutional investors. 6.6% of Audentes Therapeutics shares are owned by company insiders. Comparatively, 3.9% of Acceleron Pharma shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Audentes Therapeutics beats Acceleron Pharma on 8 of the 12 factors compared between the two stocks.

Audentes Therapeutics Company Profile

Audentes Therapeutics, Inc., a clinical stage biotechnology company, focuses on developing and commercializing gene therapy products for patients suffering from diseases caused by single gene defects. The company is developing AT132, which is in Phase I/II clinical studies for the treatment of X-linked myotubular myopathy (XLMTM); AT342 that is in Phase I/II clinical studies to treat crigler-najjar syndrome; AT982, which is in preclinical studies for the treatment of pompe disease; and AT307 that is in preclinical studies to treat CASQ2 subtype of catecholaminergic polymorphic ventricular tachycardia. Audentes Therapeutics, Inc. has a collaborative development agreement with Genethon to research, develop, manufacture, and commercialize products for the treatment of XLMTM; and license and collaboration agreement with the University of Pennsylvania to research, develop, sell, and import licensed products for the treatment of crigler-najjar. The company was founded in 2012 and is headquartered in San Francisco, California.

Acceleron Pharma Company Profile

Acceleron Pharma Inc., a clinical stage biopharmaceutical company, focuses on the discovery, development, and commercialization of therapeutics to treat serious and rare diseases. Its therapeutic candidates include luspatercept, which is in Phase III clinical trials for the treatment of myelodysplastic syndromes and beta-thalassemia; Phase II clinical trials for the treatment of patients with transfusion-dependent beta-thalassemia and myelofibrosis. The company is also developing and sotatercept for the treatment of patients with pulmonary arterial hypertension. In addition, the company is developing ACE-083, a neuromuscular candidate that is in Phase II clinical trials for the treatment of patients with facioscapulohumeral dystrophy and Charcot-Marie-Tooth disease; and ACE-2494, which is in Phase I clinical trials for the treatment of systemic muscle disorders. It has a collaboration, license, and option agreement with Celgene Corporation. The company was formerly known as Phoenix Pharma, Inc. Acceleron Pharma Inc. was founded in 2003 and is headquartered in Cambridge, Massachusetts.

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