Aerie Pharmaceuticals (NASDAQ: AERI) and Juno Therapeutics (NASDAQ:JUNO) are both mid-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Profitability

This table compares Aerie Pharmaceuticals and Juno Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aerie Pharmaceuticals N/A -86.87% -41.89%
Juno Therapeutics -332.05% -32.54% -24.87%

Valuation and Earnings

This table compares Aerie Pharmaceuticals and Juno Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aerie Pharmaceuticals N/A N/A -$99.05 million ($3.34) -17.77
Juno Therapeutics $79.36 million 69.05 -$245.58 million ($3.38) -14.20

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

Institutional & Insider Ownership

69.9% of Juno Therapeutics shares are owned by institutional investors. 9.4% of Aerie Pharmaceuticals shares are owned by insiders. Comparatively, 15.1% of Juno Therapeutics 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 breakdown of recent ratings and recommmendations for Aerie Pharmaceuticals and Juno Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aerie Pharmaceuticals 0 1 12 0 2.92
Juno Therapeutics 1 7 8 0 2.44

Aerie Pharmaceuticals presently has a consensus target price of $72.46, suggesting a potential upside of 22.09%. Juno Therapeutics has a consensus target price of $49.27, suggesting a potential upside of 2.64%. Given Aerie Pharmaceuticals’ stronger consensus rating and higher probable upside, research analysts clearly believe Aerie Pharmaceuticals is more favorable than Juno Therapeutics.

Volatility & Risk

Aerie Pharmaceuticals has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Juno Therapeutics has a beta of 2.32, meaning that its share price is 132% more volatile than the S&P 500.

Summary

Juno Therapeutics beats Aerie Pharmaceuticals on 7 of the 13 factors compared between the two stocks.

Aerie Pharmaceuticals Company Profile

Aerie Pharmaceuticals, Inc. is a clinical-stage pharmaceutical company. The Company is engaged in the discovery, development and commercialization of therapies for the treatment of patients with glaucoma and other diseases of the eye. The Company’s product candidates include Rhopressa (netarsudil ophthalmic solution) 0.02% (Rhopressa), and Roclatan (netarsudil/latanoprost ophthalmic solution) 0.02%/0.005% (Roclatan). The Company’s product candidates are designed to lower intraocular pressure (IOP) in patients with open-angle glaucoma and ocular hypertension. Its Rhopressa is a once-daily eye drop. Rhopressa inhibits Rho kinase (ROCK), and the norepinephrine transporter (NET), which are both biochemical targets for lowering IOP. Its Roclatan is a once-daily, fixed-dose combination of Rhopressa and latanoprost, which is a prescribed drug for the treatment of patients with open-angle glaucoma. The Company is engaged in conducting Phase III clinical trial for Roclatan.

Juno Therapeutics Company Profile

Juno Therapeutics, Inc. (Juno) is a biopharmaceutical company, which is focused on developing cellular immunotherapies for the treatment of cancer. The Company is developing cell-based cancer immunotherapies based on its chimeric antigen receptor (CAR) and T cell receptor (TCR) technologies to genetically engineer T cells to recognize and kill cancer cells. Its product candidates JCAR017, JCAR014, and JCAR015, as well as an additional early stage product candidate incorporating a fully human binding domain, leverage CAR technology to target CD19, a protein expressed on the surface of almost all B cell leukemias and lymphomas. Its CAR product candidate JCAR018 targets CD22, a different protein commonly expressed on the surface of B cell leukemias and lymphomas. Its MUC-16 directed product candidate is an armored CAR that secretes the cytokine interleukin 12 (IL-12), which may help to overcome the inhibitory effects that the tumor microenvironment can have on T cell activity.

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