GlaxoSmithKline (NYSE: GSK) and Marinus Pharmaceuticals (NASDAQ:MRNS) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
Institutional & Insider Ownership
9.8% of GlaxoSmithKline shares are held by institutional investors. Comparatively, 49.8% of Marinus Pharmaceuticals shares are held by institutional investors. 10.0% of GlaxoSmithKline shares are held by insiders. Comparatively, 6.4% of Marinus Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares GlaxoSmithKline and Marinus Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
GlaxoSmithKline has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Marinus Pharmaceuticals has a beta of 2.44, indicating that its share price is 144% more volatile than the S&P 500.
Valuation and Earnings
This table compares GlaxoSmithKline and Marinus Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|GlaxoSmithKline||$37.82 billion||2.28||$1.24 billion||$1.22||28.68|
|Marinus Pharmaceuticals||N/A||N/A||-$28.64 million||($0.93)||-8.48|
GlaxoSmithKline has higher revenue and earnings than Marinus Pharmaceuticals. Marinus Pharmaceuticals is trading at a lower price-to-earnings ratio than GlaxoSmithKline, indicating that it is currently the more affordable of the two stocks.
GlaxoSmithKline pays an annual dividend of $1.99 per share and has a dividend yield of 5.7%. Marinus Pharmaceuticals does not pay a dividend. GlaxoSmithKline pays out 163.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of recent recommendations for GlaxoSmithKline and Marinus Pharmaceuticals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
GlaxoSmithKline presently has a consensus price target of $38.33, suggesting a potential upside of 9.56%. Marinus Pharmaceuticals has a consensus price target of $14.50, suggesting a potential upside of 83.78%. Given Marinus Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Marinus Pharmaceuticals is more favorable than GlaxoSmithKline.
GlaxoSmithKline beats Marinus Pharmaceuticals on 9 of the 14 factors compared between the two stocks.
GlaxoSmithKline Company Profile
GlaxoSmithKline plc is a global healthcare company. The Company operates through three segments: Pharmaceuticals, Vaccines and Consumer Healthcare. The Company focuses on its research across six areas: Respiratory diseases, human immunodeficiency virus (HIV)/infectious diseases, Vaccines, Immuno-inflammation, Oncology and Rare diseases. The Company makes a range of prescription medicines, vaccines and consumer healthcare products. The Pharmaceuticals business discovers, develops and commercializes medicines to treat a range of acute and chronic diseases. The Vaccines business provides vaccines for people of all ages from babies and adolescents to adults and older people. The Consumer Healthcare business develops and markets products in Wellness, Oral health, Nutrition and Skin health categories. Its product portfolio includes Adartrel, Bexsero, Daraprim and Quinvaxem. Its brands include Panadol, abreva, polident and physiogel.
Marinus Pharmaceuticals Company Profile
Marinus Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company focuses on developing and commercializing therapeutics to treat epilepsy and neuropsychiatric disorders. Its clinical-stage product candidate, ganaxolone, is a modulator being developed in various dose forms, including intravenous, oral capsule and oral liquid, intended to provide more treatment options to adult and pediatric patient populations in both acute and chronic care settings. Ganaxolone acts on the GABAA receptor, a target in the brain known for both anti seizure and anti anxiety effects through positive allosteric modulation. The Company is developing ganaxolone for multiple epilepsy and other neuropsychiatric indications, including adjunctive, or add-on, therapy for the treatment of drug-resistant focal onset seizures; status epilepticus; Fragile X Syndrome, and PCDH19 pediatric epilepsy.
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