Portola Pharmaceuticals (NASDAQ: PTLA) and Spectrum Pharmaceuticals (NASDAQ:SPPI) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Portola Pharmaceuticals and Spectrum Pharmaceuticals’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Portola Pharmaceuticals $31.93 million 99.23 -$251.01 million ($4.55) -12.08
Spectrum Pharmaceuticals $132.03 million 6.05 -$44.85 million ($0.99) -10.27

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

Analyst Recommendations

This is a summary of current ratings and target prices for Portola Pharmaceuticals and Spectrum Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Portola Pharmaceuticals 0 1 7 0 2.88
Spectrum Pharmaceuticals 0 0 3 0 3.00

Portola Pharmaceuticals presently has a consensus target price of $65.83, indicating a potential upside of 19.81%. Spectrum Pharmaceuticals has a consensus target price of $11.33, indicating a potential upside of 11.44%. Given Portola Pharmaceuticals’ higher probable upside, research analysts clearly believe Portola Pharmaceuticals is more favorable than Spectrum Pharmaceuticals.

Insider and Institutional Ownership

85.3% of Portola Pharmaceuticals shares are held by institutional investors. Comparatively, 66.1% of Spectrum Pharmaceuticals shares are held by institutional investors. 4.9% of Portola Pharmaceuticals shares are held by company insiders. Comparatively, 13.3% of Spectrum Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Portola Pharmaceuticals and Spectrum Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Portola Pharmaceuticals -807.93% -145.12% -78.93%
Spectrum Pharmaceuticals -59.33% -30.95% -16.67%

Volatility and Risk

Portola Pharmaceuticals has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Spectrum Pharmaceuticals has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.

Summary

Spectrum Pharmaceuticals beats Portola Pharmaceuticals on 9 of the 13 factors compared between the two stocks.

About Portola Pharmaceuticals

Portola Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of therapeutics in the areas of thrombosis, other hematologic disorders and inflammation for patients having limited or no approved treatment options. The Company’s two lead programs, Betrixaban and Andexanet alfa, address unmet medical needs in the area of thrombosis, or blood clots. Its third product candidate is Cerdulatinib. The Company’s Syk is a mediator of immune response in various types of immune cells. The Company has a program of selective Syk inhibitors, one of which is partnered with Ora Inc. Betrixaban is an oral once-daily inhibitor of Factor Xa in development for extended duration venous thromboembolism (VTE) prophylaxis in acute medically ill patients. Andexanet alfa is an orphan drug, which is a recombinant protein designed to reverse anticoagulant activity in patients treated with an fXa inhibitor.

About Spectrum Pharmaceuticals

Spectrum Pharmaceuticals, Inc. is a biotechnology company. The Company operates through developing and commercializing oncology and hematology drug products segment. It has a product portfolio consisting of both commercial stage and development stage products that address various cancer types. The Company has six approved oncology/hematology products that target different types of cancer, including non-Hodgkin’s lymphoma (NHL), advanced metastatic colorectal cancer (mCRC), acute lymphoblastic leukemia (ALL) and multiple myeloma (MM). It also has three drugs in mid-to-late stage development, which include ROLONTIS for chemotherapy-induced neutropenia; QAPZOLA for immediate intravesical instillation in post-transurethral resection of bladder tumors in patients with non-muscle invasive bladder cancer (NMIBC), and POZIOTINIB, a pan-human epidermal growth factor receptor (HER) inhibitor used in the treatment of patients with a range of solid tumors, including breast and lung cancer.

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