Head to Head Contrast: Chimerix (CMRX) vs. GW Pharmaceuticals PLC (GWPH)

GW Pharmaceuticals PLC (NASDAQ: GWPH) and Chimerix (NASDAQ:CMRX) are both bio therapeutic drugs companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares GW Pharmaceuticals PLC and Chimerix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GW Pharmaceuticals PLC -1,384.41% -28.80% -25.20%
Chimerix -1,440.67% -26.00% -25.10%

Risk and Volatility

GW Pharmaceuticals PLC has a beta of 2.64, indicating that its stock price is 164% more volatile than the S&P 500. Comparatively, Chimerix has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500.

Earnings & Valuation

This table compares GW Pharmaceuticals PLC and Chimerix’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
GW Pharmaceuticals PLC $13.32 million 223.45 -$90.67 million ($5.61) -20.95
Chimerix $5.70 million 36.46 -$76.39 million ($1.43) -3.08

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

Institutional and Insider Ownership

75.7% of GW Pharmaceuticals PLC shares are owned by institutional investors. Comparatively, 67.8% of Chimerix shares are owned by institutional investors. 5.5% of GW Pharmaceuticals PLC shares are owned by company insiders. Comparatively, 10.5% of Chimerix shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for GW Pharmaceuticals PLC and Chimerix, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GW Pharmaceuticals PLC 0 2 6 0 2.75
Chimerix 0 2 0 0 2.00

GW Pharmaceuticals PLC presently has a consensus price target of $146.25, suggesting a potential upside of 24.42%. Chimerix has a consensus price target of $6.50, suggesting a potential upside of 47.39%. Given Chimerix’s higher probable upside, analysts clearly believe Chimerix is more favorable than GW Pharmaceuticals PLC.

Summary

GW Pharmaceuticals PLC beats Chimerix on 7 of the 13 factors compared between the two stocks.

About GW Pharmaceuticals PLC

GW Pharmaceuticals plc is a biopharmaceutical company focused on developing and commercializing therapeutics from its cannabinoid product platform in a range of disease areas. The Company’s lead cannabinoid product candidate is Epidiolex, which is a liquid formulation of pure plant-derived cannabidiol (CBD). The Company offers Sativex (nabiximols), which is indicated for the treatment of spasticity due to multiple sclerosis (MS). The Company operates through three segments: Commercial, Sativex Research and Development, and Pipeline Research and Development. The Commercial segment distributes and sells the Company’s commercial products. The Sativex Research and Development segment seeks to maximize the potential of Sativex through the development of new indications. The Pipeline Research and Development segment seeks to develop cannabinoid medications other than Sativex across a range of therapeutic areas using its cannabinoid technology platform.

About Chimerix

Chimerix, Inc. is a biotechnology company. The Company is focused on discovering, developing and commercializing medicines that address unmet medical needs. Its lead compound, brincidofovir, is in development as an oral and intravenous (IV) formulation for the prevention and treatment of deoxyribonucleic acid (DNA) viruses, including smallpox, adenoviruses (AdV), and the human herpesviruses. It is also advancing the development of CMX521 for the treatment and prevention of norovirus. In addition, the Company has an active discovery program focusing on viral targets for which limited or no therapies are available. Brincidofovir is an investigational oral nucleotide analog that has shown spectrum antiviral activity against all five families of double-stranded deoxyribonucleic acid (dsDNA) viruses that affect humans. Oral and IV formulations of brincidofovir are in development, both of which deliver the active antiviral directly to the site of viral replication.

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