argenx (NASDAQ: ARGX) and Aerie Pharmaceuticals (NASDAQ:AERI) are both mid-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

This table compares argenx and Aerie Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
argenx N/A N/A N/A
Aerie Pharmaceuticals N/A -84.90% -46.26%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for argenx and Aerie Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
argenx 0 0 6 0 3.00
Aerie Pharmaceuticals 0 0 10 0 3.00

argenx currently has a consensus target price of $132.00, indicating a potential upside of 48.45%. Aerie Pharmaceuticals has a consensus target price of $78.78, indicating a potential upside of 7.77%. Given argenx’s higher probable upside, research analysts plainly believe argenx is more favorable than Aerie Pharmaceuticals.

Institutional & Insider Ownership

52.8% of argenx shares are held by institutional investors. 10.5% of Aerie Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

argenx has a beta of 2.79, suggesting that its stock price is 179% more volatile than the S&P 500. Comparatively, Aerie Pharmaceuticals has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Valuation & Earnings

This table compares argenx and Aerie Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
argenx $44.74 million 63.94 -$31.73 million ($1.40) -63.51
Aerie Pharmaceuticals N/A N/A -$145.10 million ($3.37) -21.69

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

Summary

argenx beats Aerie Pharmaceuticals on 8 of the 10 factors compared between the two stocks.

argenx Company Profile

argenx SE, a clinical-stage biopharmaceutical company, focuses on developing antibody-based therapies for the treatment of autoimmune diseases and cancer. The company's lead product candidates include ARGX-113 that completed Phase 2 clinical trials for the treatment of autoimmune diseases, including myasthenia gravis, immune thrombocytopenia, and pemphigus vulgaris; and ARGX-110, which is in Phase 1/2 clinical trials for the treatment of T-cell lymphoma, acute myeloid leukemia, and myelodysplastic syndrome. It is also developing ARGX-111 to treat solid tumors; ARGX-109 for the treatment of rheumatoid arthritis; ARGX-112 to treat skin inflammation; ARGX-115, a cancer immunotherapy-focused product candidate; and ARGX-116 for the treatment of dyslipidemia. The company has license and collaboration agreements with AbbVie S.Á.R.L.; Bird Rock Bio, Inc.; LEO Pharma A/S; Staten Biotechnology B.V.; and Shire International GmbH. argenx SE was founded in 2008 and is based in Breda, the Netherlands.

Aerie Pharmaceuticals Company Profile

Aerie Pharmaceuticals, Inc., an ophthalmic pharmaceutical company, focuses on the discovery, development, and commercialization of first-in-class therapies for the treatment of glaucoma and other eye diseases. Its lead product is Rhopressa, a once-daily eye drop to reduce elevated intraocular pressure (IOP) in patients with glaucoma or ocular hypertension. The company's advanced-stage product candidate is Roclatan, a once-daily eye drop to reduce IOP to treat patients with open-angle glaucoma and ocular hypertension. Aerie Pharmaceuticals, Inc. has a collaborative research, development, and licensing agreement with DSM. Aerie Pharmaceuticals, Inc. was founded in 2005 and is headquartered in Durham, North Carolina.

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