Comparing Alkermes (ALKS) & NewLink Genetics (NLNK)

Alkermes (NASDAQ: ALKS) and NewLink Genetics (NASDAQ:NLNK) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Insider and Institutional Ownership

99.2% of Alkermes shares are held by institutional investors. Comparatively, 52.6% of NewLink Genetics shares are held by institutional investors. 5.3% of Alkermes shares are held by insiders. Comparatively, 13.7% of NewLink Genetics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Alkermes has a beta of 2.14, suggesting that its stock price is 114% more volatile than the S&P 500. Comparatively, NewLink Genetics has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Alkermes and NewLink Genetics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alkermes 0 5 5 0 2.50
NewLink Genetics 0 0 6 0 3.00

Alkermes presently has a consensus price target of $64.50, suggesting a potential upside of 23.59%. NewLink Genetics has a consensus price target of $25.67, suggesting a potential upside of 223.67%. Given NewLink Genetics’ stronger consensus rating and higher possible upside, analysts plainly believe NewLink Genetics is more favorable than Alkermes.

Profitability

This table compares Alkermes and NewLink Genetics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alkermes -20.12% -7.27% -5.05%
NewLink Genetics -229.19% -63.39% -47.83%

Valuation & Earnings

This table compares Alkermes and NewLink Genetics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alkermes $745.69 million 10.76 -$208.44 million ($1.11) -47.02
NewLink Genetics $35.77 million 8.22 -$85.15 million ($2.44) -3.25

NewLink Genetics has lower revenue, but higher earnings than Alkermes. Alkermes is trading at a lower price-to-earnings ratio than NewLink Genetics, indicating that it is currently the more affordable of the two stocks.

Summary

Alkermes beats NewLink Genetics on 8 of the 13 factors compared between the two stocks.

Alkermes 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.

NewLink Genetics Company Profile

NewLink Genetics Corporation is a clinical-stage immuno-oncology company focused on discovering, developing and commercializing immunotherapeutic products for the treatment of cancer. The Company’s portfolio includes biologic and small-molecule immunotherapy product candidates for a range of oncology indications. Its biologic product candidates are based on its HyperAcute Cellular Immunotherapy technology, which is designed to stimulate the human immune system to attack cancer cells. Its additional HyperAcute Cellular Immunotherapy product candidates in clinical development include tergenpumatucel-L and dorgenmeltucel-L for patients with advanced lung cancer and melanoma, respectively. Additionally, it has two small-molecule product candidates in clinical development: GDC-0919 and indoximod. These product candidates are indoleamine-2, 3-dioxygenase (IDO) pathway inhibitors and focus on breaking the immune system’s tolerance to cancer.

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