Array BioPharma (NASDAQ: ARRY) and Aptevo Therapeutics (NASDAQ:APVO) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Array BioPharma and Aptevo Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Array BioPharma 0 1 7 0 2.88
Aptevo Therapeutics 0 0 1 0 3.00

Array BioPharma currently has a consensus price target of $14.13, indicating a potential upside of 25.56%. Aptevo Therapeutics has a consensus price target of $6.00, indicating a potential upside of 99.34%. Given Aptevo Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Aptevo Therapeutics is more favorable than Array BioPharma.

Valuation and Earnings

This table compares Array BioPharma and Aptevo Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Array BioPharma $150.85 million 14.69 -$116.81 million ($0.74) -15.20
Aptevo Therapeutics $36.43 million 1.77 -$112.41 million ($1.82) -1.65

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

Profitability

This table compares Array BioPharma and Aptevo Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Array BioPharma -89.30% -158.70% -38.54%
Aptevo Therapeutics 5.40% -28.03% -17.46%

Insider and Institutional Ownership

98.2% of Array BioPharma shares are held by institutional investors. Comparatively, 32.2% of Aptevo Therapeutics shares are held by institutional investors. 3.2% of Array BioPharma shares are held by insiders. Comparatively, 15.6% of Aptevo Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Aptevo Therapeutics beats Array BioPharma on 7 of the 12 factors compared between the two stocks.

Array BioPharma Company Profile

Array BioPharma Inc. is a biopharmaceutical company focused on the discovery, development and commercialization of targeted small molecule drugs to treat patients afflicted with cancer. The Company’s programs include approximately three cancer drugs, binimetinib, encorafenib and selumetinib (partnered with AstraZeneca, PLC). Its binimetinib and encorafenib are in Phase III trials in advanced cancer patients, including the COLUMBUS trial studying encorafenib in combination with binimetinib in patients with BRAF-mutant melanoma and has initiated BEACON CRC trial to study encorafenib in combination with binimetinib and cetuximab in patients with BRAF V600E-mutant colorectal cancer (BRAFm CRC). Its selumetinib is a mitogen-activated protein kinase (MEK) inhibitor for cancer, which is in Phase III trial. Its advanced clinical-stage drugs include Filanesib, ARRY-797, ASC08/Danoprevir, Ipatasertib/GDC-0068, Motolimod/VTX-2337, LOXO-101, ONT-380/ARRY-380, GDC-0575, GDC-0994 and ARRY-382.

Aptevo Therapeutics Company Profile

Aptevo Therapeutics Inc. is a biotechnology company. The Company is focused on oncology and hematology therapeutics. The Company is engaged in the discovery, development, commercialization and sale of oncology and hematology therapeutics. The Company’s technology is the ADAPTIR (modular protein technology) platform. The Company has approximately four products in the areas of hematology and infectious diseases, as well as various investigational-stage product candidates in immuno-oncology. The Company’s investigational-stage product candidates include MOR209/ES414, ES210, ES425, Otlertuzumab and 5E3. Its technology can produce monospecific and multispecific immunotherapeutic proteins that bind to various targets. The Company’s marketed products are WinRho SDF (Rho(D) Immune Globulin Intravenous (Human)), HepaGam B (Hepatitis B Immune Globulin Intravenous (Human)), VARIZIG (Varicella Zoster Immune Globulin (Human)), and IXINITY (coagulation factor IX (recombinant)).

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