Auxilium Pharmaceuticals (AUXL) & Peregrine Pharmaceuticals (CDMO) Critical Comparison

Auxilium Pharmaceuticals (NASDAQ: AUXL) and Peregrine Pharmaceuticals (NASDAQ:CDMO) are both small-cap biopharmaceuticals companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Profitability

This table compares Auxilium Pharmaceuticals and Peregrine Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Auxilium Pharmaceuticals -29.78% -76.75% -11.59%
Peregrine Pharmaceuticals -39.23% -52.55% -24.77%

Earnings and Valuation

This table compares Auxilium Pharmaceuticals and Peregrine Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Auxilium Pharmaceuticals N/A N/A N/A ($3.27) -11.15
Peregrine Pharmaceuticals $57.63 million 2.51 -$28.15 million ($0.70) -4.57

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Auxilium Pharmaceuticals and Peregrine Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Auxilium Pharmaceuticals 0 0 0 0 N/A
Peregrine Pharmaceuticals 0 0 1 0 3.00

Peregrine Pharmaceuticals has a consensus price target of $10.00, suggesting a potential upside of 212.50%. Given Peregrine Pharmaceuticals’ higher possible upside, analysts clearly believe Peregrine Pharmaceuticals is more favorable than Auxilium Pharmaceuticals.

Institutional and Insider Ownership

18.4% of Peregrine Pharmaceuticals shares are owned by institutional investors. 2.5% of Peregrine Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Auxilium Pharmaceuticals has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Peregrine Pharmaceuticals has a beta of 2.23, indicating that its stock price is 123% more volatile than the S&P 500.

Summary

Peregrine Pharmaceuticals beats Auxilium Pharmaceuticals on 9 of the 11 factors compared between the two stocks.

About Auxilium Pharmaceuticals

Auxilium Pharmaceuticals, Inc. is a specialty biopharmaceutical company that focuses on developing and marketing products to predominantly specialist audiences. Its core therapeutic focus continues to be in the area of urology, with an anchor position in men’s healthcare. The company’s products include Testim (testosterone gel) and testosterone gel are indicated for testosterone replacement therapy in adult males for conditions associated with a deficiency or absence of endogenous testosterone; TESTOPEL offers men an option that provides a long-acting androgenic effect; Striant (testosterone buccal system) CIII is indicated for replacement therapy in adult males for conditions associated with a deficiency or absence of endogenous testosterone; STENDRA is a phosphodiesterase 5 (PDE5) inhibitor indicated for the treatment of erectile dysfunction; among others.

About Peregrine Pharmaceuticals

Avid Bioservices, Inc., formerly Peregrine Pharmaceuticals, Inc., incorporated on September 25, 1996, is a biopharmaceutical company. The Company is engaged in providing contract manufacturing services for third party customers on a fee-for-service basis while also supporting its internal drug development efforts. The Company delivers pharmaceutical products through its contract manufacturing business and through licensing its development-stage immunotherapy products. The company provides a comprehensive range of process development, high quality cGMP clinical and commercial manufacturing services for the biotechnology and biopharmaceutical industries. Its services include cGMP clinical and commercial product manufacturing, purification, bulk packaging, stability testing and regulatory strategy, submission and support. The Company also provides a variety of process development activities, including cell line development and optimization.

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