Ardelyx (NASDAQ:ARDX) versus Aquestive Therapeutics (NASDAQ:AQST) Financial Analysis

Aquestive Therapeutics (NASDAQ:AQSTGet Free Report) and Ardelyx (NASDAQ:ARDXGet Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.

Earnings and Valuation

This table compares Aquestive Therapeutics and Ardelyx”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aquestive Therapeutics $57.56 million 6.89 -$44.14 million ($0.71) -4.58
Ardelyx $333.61 million 5.78 -$39.14 million ($0.23) -34.48

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

Institutional & Insider Ownership

32.5% of Aquestive Therapeutics shares are owned by institutional investors. Comparatively, 58.9% of Ardelyx shares are owned by institutional investors. 8.4% of Aquestive Therapeutics shares are owned by company insiders. Comparatively, 4.8% of Ardelyx shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Aquestive Therapeutics and Ardelyx’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aquestive Therapeutics -158.95% N/A -59.86%
Ardelyx -14.20% -36.91% -12.57%

Volatility and Risk

Aquestive Therapeutics has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500. Comparatively, Ardelyx has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Aquestive Therapeutics and Ardelyx, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aquestive Therapeutics 1 0 7 2 3.00
Ardelyx 1 0 8 2 3.00

Aquestive Therapeutics presently has a consensus target price of $8.83, indicating a potential upside of 171.79%. Ardelyx has a consensus target price of $14.30, indicating a potential upside of 80.33%. Given Aquestive Therapeutics’ higher probable upside, equities research analysts plainly believe Aquestive Therapeutics is more favorable than Ardelyx.

Summary

Ardelyx beats Aquestive Therapeutics on 7 of the 13 factors compared between the two stocks.

About Aquestive Therapeutics

(Get Free Report)

Aquestive Therapeutics, Inc. operates as a pharmaceutical company in the United States and internationally. The company markets Sympazan, an oral soluble film formulation of clobazam for the treatment of lennox-gastaut syndrome; Suboxone, a sublingual film formulation of buprenorphine and naloxone for the treatment of opioid dependence; Zuplenz, an oral soluble film formulation of ondansetron for the treatment of nausea and vomiting associated with chemotherapy and post-operative recovery; and Azstarys, a once-daily product for the treatment of attention deficit hyperactivity disorder. Its proprietary product candidates comprise Libervant, a buccal soluble film formulation of diazepam for the treatment of seizures; KYNMOBI, a sublingual film formulation of apomorphine for the treatment of episodic off-periods in Parkinson's disease; and Exservan, an oral soluble film formulation of riluzole for the treatment of amyotrophic lateral sclerosis. The company's proprietary pipeline of complex molecule product includes AQST-108, a sublingual film formulation delivering systemic epinephrine for the treatment of conditions other than anaphylaxis; and Anaphylm, an epinephrine sublingual film for the emergency treatment of allergic reactions, including anaphylaxis. In addition, it develops Adrenaverse, an epinephrine prodrug platform. The company was incorporated in 2004 and is headquartered in Warren, New Jersey.

About Ardelyx

(Get Free Report)

Ardelyx, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines to treat gastrointestinal and cardiorenal therapeutic areas in the United States and internationally. The company’s lead product candidate is tenapanor for the treatment of patients with irritable bowel syndrome with constipation. It also develops XPHOZAH, which is in Phase III clinical trial to reduce serum phosphorus in adults with chronic kidney disease (CKD)on dialysis, or hyperphosphatemia; RDX013, a potassium secretagogue, for the treatment of elevated serum potassium, or hyperkalemia, a problem among patients with kidney and/or heart failure; and RDX020, for adult patients with metabolic acidosis, a serious electrolyte disorder. The company has agreements with Kyowa Kirin, Fosun Pharmaceutical Industrial Development Co. Ltd., and Knight Therapeutics, Inc. for the development and commercialization of tenapanor in their respective territories. The company was formerly known as Nteryx, Inc. and changed its name to Ardelyx, Inc. in June 2008. Ardelyx, Inc. was incorporated in 2007 and is headquartered in Waltham, Massachusetts.

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