Seattle Genetics (NASDAQ: BOLD) and Audentes Therapeutics (NASDAQ:BOLD) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Seattle Genetics and Audentes Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seattle Genetics 0 7 9 0 2.56
Audentes Therapeutics 2 3 7 0 2.42

Seattle Genetics presently has a consensus price target of $70.62, indicating a potential downside of 10.61%. Audentes Therapeutics has a consensus price target of $35.45, indicating a potential downside of 10.65%. Given Seattle Genetics’ stronger consensus rating and higher possible upside, equities analysts plainly believe Seattle Genetics is more favorable than Audentes Therapeutics.

Profitability

This table compares Seattle Genetics and Audentes Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seattle Genetics -7.75% -21.01% -17.56%
Audentes Therapeutics N/A N/A -38.04%

Earnings and Valuation

This table compares Seattle Genetics and Audentes Therapeutics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Seattle Genetics $482.25 million 26.01 -$125.53 million ($0.88) -89.77
Audentes Therapeutics N/A N/A -$90.23 million ($3.40) -11.67

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

Risk and Volatility

Seattle Genetics has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500. Comparatively, Audentes Therapeutics has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Insider and Institutional Ownership

96.8% of Audentes Therapeutics shares are held by institutional investors. 33.8% of Seattle Genetics shares are held by company insiders. Comparatively, 6.6% of Audentes Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Seattle Genetics beats Audentes Therapeutics on 8 of the 13 factors compared between the two stocks.

About Seattle Genetics

Seattle Genetics, Inc., a biotechnology company, focuses on the development and commercialization of targeted therapies for the treatment of cancer worldwide. It markets ADCETRIS, an antibody-drug conjugate for the treatment of relapsed Hodgkin lymphoma and relapsed systemic anaplastic large cell lymphoma. The company also develops enfortumab vedotin, which is in Phase 1 clinical trial for Nectin-4-positive solid tumors, including bladder cancer; and tisotumab vedotin that is in Phase II clinical trial for patients with cervical cancer and solid tumors. In addition, it conducts phase 3 clinical trials of ADCETRIS which includes ECHELON-1 for patients with newly diagnosed advanced stage classical Hodgkin lymphoma; ECHELON-2 for patients with newly diagnosed CD30-expressing MTCL; and the CHECKMATE 812 for patients with relapsed or refractory or transplant-ineligible, and advanced classical Hodgkin lymphoma. Further, the company's earlier stage clinical pipeline includes six other ADC programs consisting of ladiratuzumab vedotin, denintuzumab mafodotin, SGN-CD19B, SGN-CD123A, SGN-CD33A, and SGN-CD352A, as well as two immuno-oncology agents, including SEA-CD40 and SGN-2FF. It has collaborations for its ADC technology with various biotechnology and pharmaceutical companies, including AbbVie Biotechnology Ltd.; Bayer Pharma AG; Celldex Therapeutics, Inc.; Genentech, Inc.; GlaxoSmithKline LLC; Pfizer, Inc., PSMA Development Company LLC; Takeda Pharmaceutical Company Limited, Unum Therapeutics, Inc., and Genmab A/S, as well as has co-development agreement with Agensys, Inc. Seattle Genetics, Inc. was founded in 1998 and is headquartered in Bothell, Washington.

About Audentes Therapeutics

Audentes Therapeutics, Inc., a clinical stage biotechnology company, focuses on developing and commercializing gene therapy products for patients suffering from diseases caused by single gene defects. The company is developing AT132, which is in Phase I/II clinical studies for the treatment of X-linked myotubular myopathy (XLMTM); AT342 that is in Phase I/II clinical studies to treat crigler-najjar syndrome; AT982, which is in preclinical studies for the treatment of pompe disease; and AT307 that is in preclinical studies to treat CASQ2 subtype of catecholaminergic polymorphic ventricular tachycardia. Audentes Therapeutics, Inc. has a collaborative development agreement with Genethon to research, develop, manufacture, and commercialize products for the treatment of XLMTM; and license and collaboration agreement with the University of Pennsylvania to research, develop, sell, and import licensed products for the treatment of crigler-najjar. The company was founded in 2012 and is headquartered in San Francisco, California.

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