Critical Contrast: Neurocrine Biosciences (NBIX) and Acorda Therapeutics (ACOR)

Neurocrine Biosciences (NASDAQ:NBIX) and Acorda Therapeutics (NASDAQ:ACOR) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Volatility & Risk

Neurocrine Biosciences has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Acorda Therapeutics has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500.

Earnings & Valuation

This table compares Neurocrine Biosciences and Acorda Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Neurocrine Biosciences $161.63 million 48.71 -$142.54 million ($1.62) -53.60
Acorda Therapeutics $588.29 million 1.38 -$223.35 million $1.04 16.39

Neurocrine Biosciences has higher earnings, but lower revenue than Acorda Therapeutics. Neurocrine Biosciences is trading at a lower price-to-earnings ratio than Acorda Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Neurocrine Biosciences and Acorda Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Neurocrine Biosciences 2.40% 2.54% 1.17%
Acorda Therapeutics -24.88% 13.72% 6.31%

Institutional and Insider Ownership

96.6% of Neurocrine Biosciences shares are held by institutional investors. 4.3% of Neurocrine Biosciences shares are held by insiders. Comparatively, 7.8% of Acorda Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Neurocrine Biosciences and Acorda Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Neurocrine Biosciences 0 1 17 0 2.94
Acorda Therapeutics 2 5 3 0 2.10

Neurocrine Biosciences currently has a consensus price target of $104.62, suggesting a potential upside of 20.48%. Acorda Therapeutics has a consensus price target of $24.33, suggesting a potential upside of 42.72%. Given Acorda Therapeutics’ higher probable upside, analysts clearly believe Acorda Therapeutics is more favorable than Neurocrine Biosciences.

Summary

Acorda Therapeutics beats Neurocrine Biosciences on 8 of the 14 factors compared between the two stocks.

About Neurocrine Biosciences

Neurocrine Biosciences, Inc. discovers and develops pharmaceuticals for the treatment of neurological and endocrine-related diseases and disorders in the United States. The company's lead products include INGREZZA (valbenazine), a vesicular monoamine transporter 2 inhibitor (VMAT2), which is used for the treatment of movement disorders; elagolix, a gonadotropin-releasing hormone (GnRH) antagonist that is in Phase III clinical trial for use in women's health; and opicapone, a catechol-O-methyltransferase inhibitor, which is in Phase III clinical trial that is used for in adjunct therapy and preparations of levodopa/DOPA decarboxylase inhibitors for adult patients with Parkinson's disease. It is also developing NBI-74788, which is in Phase II clinical trial that is used for the treatment of congenital adrenal hyperplasia. In addition, the company's research programs comprise VMAT2 Inhibitors for movement disorders, bipolar disorders, and schizophrenia; and G Protein-Coupled Receptors and Ion Channels for epilepsy, essential tremor, pain, dystonia, and other indications. It has collaborations and agreements with AbbVie Inc. to develop and commercialize elagolix and GnRH antagonists for women's and men's health; Mitsubishi Tanabe Pharma Corporation to develop and commercialize INGREZZA for movement disorders; and BIAL – Portela & Ca, S.A. to develop and commercialize opicapone for the treatment of human diseases and conditions, including Parkinson's disease. The company also has a research collaboration agreement with Jnana Therapeutics Inc. to discover novel small molecule therapeutics for multiple targets for central nervous system disorders. Neurocrine Biosciences, Inc. was founded in 1992 and is headquartered in San Diego, California.

About Acorda Therapeutics

Acorda Therapeutics, Inc., a biopharmaceutical company, identifies, develops, and commercializes therapies for neurological disorders in the United States. The company markets Ampyra (dalfampridine), an oral drug to improve walking in patients with multiple sclerosis (MS); and Qutenza, a dermal patch for the management of neuropathic pain associated with post-herpetic neuralgia. It also markets Ampyra as Fampyra in Europe, Asia, and the Americas. In addition, the company develops Inbrija for the treatment of OFF periods in Parkinson's disease; an inhaled triptan (zolmitriptan) for acute treatment of migraine by using the ARCUS drug delivery technology; SYN120, which is completed Phase II clinical trial to treat Parkinson's disease-related dementia; and BTT1023 (timolumab) that is in Phase II clinical trial for primary sclerosing cholangitis. Further, it develops rHIgM22, which is in Phase I clinical trial for the treatment of MS; and Cimaglermin alfa that is in Phase Ib clinical trial for heart failure patients. The company has collaborations and license agreements with Biogen International GmbH; Alkermes plc; Rush-Presbyterian St. Luke's Medical Center; Alkermes, Inc.; Astellas Pharma Europe Ltd.; Canadian Spinal Research Organization; Mayo Foundation for Education and Research; Paion AG; Medarex, Inc.; and Brigham and Women's Hospital, Inc. Acorda Therapeutics, Inc. was founded in 1995 and is headquartered in Ardsley, New York.

Receive News & Ratings for Neurocrine Biosciences Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Neurocrine Biosciences and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply