Sucampo Pharmaceuticals (NASDAQ: SCMP) and Ariad Pharmaceuticals (NASDAQ:ARIA) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.
Insider & Institutional Ownership
65.3% of Sucampo Pharmaceuticals shares are held by institutional investors. Comparatively, 87.0% of Ariad Pharmaceuticals shares are held by institutional investors. 4.1% of Sucampo Pharmaceuticals shares are held by company insiders. Comparatively, 8.2% of Ariad Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Sucampo Pharmaceuticals and Ariad Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings for Sucampo Pharmaceuticals and Ariad Pharmaceuticals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sucampo Pharmaceuticals presently has a consensus price target of $23.56, indicating a potential upside of 41.05%. Ariad Pharmaceuticals has a consensus price target of $22.00, indicating a potential downside of 8.30%. Given Sucampo Pharmaceuticals’ stronger consensus rating and higher probable upside, research analysts clearly believe Sucampo Pharmaceuticals is more favorable than Ariad Pharmaceuticals.
Valuation & Earnings
This table compares Sucampo Pharmaceuticals and Ariad Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sucampo Pharmaceuticals||$230.06 million||3.39||$18.48 million||($3.29)||-5.08|
Sucampo Pharmaceuticals has higher revenue and earnings than Ariad Pharmaceuticals. Ariad Pharmaceuticals is trading at a lower price-to-earnings ratio than Sucampo Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Sucampo Pharmaceuticals beats Ariad Pharmaceuticals on 7 of the 10 factors compared between the two stocks.
Sucampo Pharmaceuticals Company Profile
Sucampo Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of pharmaceutical products. Its primary focus areas are gastroenterology, ophthalmology and oncology-related disorders. Its product candidates include VTS-270, Lubiprostone (AMITIZA), Unoprostone is opropyl (RESCULA) and CPP-1X/sulindac combination product. VTS-270 is an investigational drug under clinical study for the treatment of Niemann-Pick Disease Type C-1, an ultra-orphan, progressive and fatal disease. AMITIZA is a ClC-2 chloride channel activator, which has been approved for three indications that cover distinct patient types: chronic idiopathic constipation, irritable bowel syndrome with constipation, and opioid-induced constipation. RESCULA is a Big Potassium channel activator used to lower intraocular pressure. CPP-1X/sulindac combination product is meant for the treatment of familial adenomatous polyposis (FAP).
Ariad Pharmaceuticals Company Profile
ARIAD Pharmaceuticals, Inc. (ARIAD) is an oncology company. The Company is focused on transforming the lives of cancer patients with medicines. The Company’s product pipeline includes Iclusig (ponatinib), brigatinib, AP32788 and ridaforolimus. The Company’s Iclusig is a tyrosine kinase inhibitor (TKI) that is approved in the United States, the European Union, Australia, Switzerland, Israel and Canada for the treatment of adult patients with chronic myeloid leukemia (CML), and Philadelphia chromosome-positive acute lymphoblastic leukemia (Ph+ ALL). Its Brigatinib is an investigational inhibitor of anaplastic lymphoma kinase (ALK). Its AP32788 is a TKI, which is designed as a targeted therapy for patients with non-small cell lung cancer (NSCLC) with specific mutations in two kinases, epidermal growth factor receptor (EGFR), or human epidermal growth factor receptor 2 (HER2). Its Ridaforolimus is an investigational inhibitor of the mammalian target of rapamycin (mTOR).
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