Contrasting Alkermes PLC (ALKS) and Foundation Medicine (FMI)
Foundation Medicine (NASDAQ: FMI) and Alkermes PLC (NASDAQ:ALKS) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.
Valuation & Earnings
This table compares Foundation Medicine and Alkermes PLC’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Foundation Medicine||$119.58 million||12.38||-$140.79 million||($4.47)||-9.19|
|Alkermes PLC||$804.37 million||9.66||-$103.30 million||($1.28)||-39.52|
Alkermes PLC has higher revenue and earnings than Foundation Medicine. Alkermes PLC is trading at a lower price-to-earnings ratio than Foundation Medicine, indicating that it is currently the more affordable of the two stocks.
This table compares Foundation Medicine and Alkermes PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Foundation Medicine has a beta of -0.13, meaning that its stock price is 113% less volatile than the S&P 500. Comparatively, Alkermes PLC has a beta of 2.2, meaning that its stock price is 120% more volatile than the S&P 500.
This is a summary of current ratings for Foundation Medicine and Alkermes PLC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Foundation Medicine currently has a consensus price target of $35.00, suggesting a potential downside of 14.84%. Alkermes PLC has a consensus price target of $63.25, suggesting a potential upside of 25.05%. Given Alkermes PLC’s higher possible upside, analysts plainly believe Alkermes PLC is more favorable than Foundation Medicine.
Insider & Institutional Ownership
31.8% of Foundation Medicine shares are owned by institutional investors. Comparatively, 98.5% of Alkermes PLC shares are owned by institutional investors. 2.7% of Foundation Medicine shares are owned by insiders. Comparatively, 5.3% of Alkermes PLC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Alkermes PLC beats Foundation Medicine on 11 of the 12 factors compared between the two stocks.
Foundation Medicine Company Profile
Foundation Medicine, Inc. is a molecular information company. The Company sells products that are enabled by its molecular information platform to physicians and biopharmaceutical companies. It is engaged in the business of delivering molecular information about cancer to its customers. Its platform includes various methods and algorithms for analyzing specimens across various types of cancer. Its suite of clinical molecular information products includes FoundationOne, which is used for solid tumors; FoundationOne Heme, which is used for blood-based cancers or hematologic malignancies, including leukemia, lymphoma, myeloma, pediatric cancers and advanced sarcoma; FoundationACT (Assay for Circulating Tumor DNA), which is a blood-based (liquid biopsy) assay that evaluates circulating tumor deoxyribonucleic acid (ctDNA), and FoundationFocus CDxBRCA, which is a companion diagnostic assay to aid in identifying women with ovarian cancer for whom treatment with Rubraca (rucaparib).
Alkermes PLC Company Profile
Alkermes plc is a biopharmaceutical company. The Company is engaged in the researching, developing and commercializing pharmaceutical products that are designed to address medical needs of patients in therapeutic areas. The Company has a portfolio of marketed drug products and a clinical pipeline of products that address central nervous system (CNS) disorders, such as schizophrenia, depression, addiction and multiple sclerosis (MS). The Company’s products include ARISTADA, VIVITROL, INVEGA SUSTENNA, XEPLION, INVEGA TRINZA, TREVICTA, RISPERDAL CONSTA, AMPYRA, FAMPYRA, BYDUREON, Aripiprazole lauroxil, ALKS 5461, ALKS 3831, ALKS 8700, ALKS 6428, ALKS 4230 and ALKS 7119. The Company’s product platforms include injectable extended-release microsphere technology, LinkeRx technology, NanoCrystal technology and oral controlled release (OCR) technology. ARISTADA is an extended-release intramuscular injectable suspension for the treatment of schizophrenia.
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