Aimmune Therapeutics (NASDAQ: AIMT) and Salix Pharmaceuticals (NASDAQ:SLXP) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.

Institutional & Insider Ownership

73.3% of Aimmune Therapeutics shares are owned by institutional investors. 17.6% of Aimmune Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Aimmune Therapeutics and Salix Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aimmune Therapeutics 0 0 4 0 3.00
Salix Pharmaceuticals 0 0 0 0 N/A

Aimmune Therapeutics presently has a consensus target price of $53.25, suggesting a potential upside of 40.06%. Given Aimmune Therapeutics’ higher probable upside, research analysts plainly believe Aimmune Therapeutics is more favorable than Salix Pharmaceuticals.

Risk & Volatility

Aimmune Therapeutics has a beta of -0.66, meaning that its share price is 166% less volatile than the S&P 500. Comparatively, Salix Pharmaceuticals has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Valuation and Earnings

This table compares Aimmune Therapeutics and Salix Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aimmune Therapeutics N/A N/A -$80.82 million ($2.35) -16.18
Salix Pharmaceuticals N/A N/A N/A ($6.51) -26.55

Salix Pharmaceuticals is trading at a lower price-to-earnings ratio than Aimmune Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Aimmune Therapeutics and Salix Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aimmune Therapeutics N/A -46.18% -43.28%
Salix Pharmaceuticals -2,134.34% -305.24% -25.83%

Summary

Aimmune Therapeutics beats Salix Pharmaceuticals on 7 of the 9 factors compared between the two stocks.

Aimmune Therapeutics Company Profile

Aimmune Therapeutics, Inc. is a clinical-stage biopharmaceutical company developing a therapeutic approach, including the development of product candidates, for the treatment of peanut and other food allergies. The Company’s therapeutic approach, which it refers to as Characterized Oral Desensitization Immunotherapy (CODIT), is a system designed to desensitize patients to food allergens using characterized biologic products, defined treatment protocols and support services. The Company’s lead CODIT product candidate, AR101, is an investigational biologic for the treatment of patients with peanut allergy. The Company has initiated Peanut Allergy Oral Immunotherapy Study of AR101 for Desensitization in Children and Adults (PALISADE), its Phase III registration trial of AR101. The Company is in the process of evaluating additional delivery forms for AR101 for the maintenance phase.

Salix Pharmaceuticals Company Profile

Salix Pharmaceuticals, Ltd. is a specialty pharmaceutical company engaged in acquiring, developing and commercializing prescription drugs and medical devices used in the treatment of a variety of gastrointestinal disorders. The Company offers over 20 marketed products, such as XIFAXAN550 (rifaximin) tablets, XIFAXAN (rifaximin) tablets, APRISO (mesalamine) extended-release capsules, UCERIS (budesonide MMX) extended release tablets, MOVIPREP, GLUMETZA extended release tablets, RELISTOR subcutaneous injection, UCERIS rectal foam, OSMOPREP tablets, SOLESTA, DEFLUX, FULYZAQ (crofelemer) delayed-release tablets, GIAZO (balsalazide disodium) tablets, CYCLOSET (bromocriptine mesylate) tablets, and FENOGLIDE (fenofibrate) tablets, among others. Its primary product candidates under development include Rifaximin, Methylnaltrexone bromide oral, Ruconest, Rifaximin delayed release or extended intestinal release and Rifaximin soluble solid dispersion (SSD)/next generation.

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