Opus Genetics (NASDAQ:IRD – Get Free Report) and Alkermes (NASDAQ:ALKS – Get Free Report) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.
Profitability
This table compares Opus Genetics and Alkermes’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Opus Genetics | -1,091.82% | N/A | -150.13% |
| Alkermes | 3.96% | 4.15% | 2.19% |
Valuation & Earnings
This table compares Opus Genetics and Alkermes”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Opus Genetics | $14.20 million | 19.32 | -$49.59 million | ($1.35) | -2.46 |
| Alkermes | $1.48 billion | 5.05 | $241.66 million | $0.38 | 116.95 |
Alkermes has higher revenue and earnings than Opus Genetics. Opus Genetics is trading at a lower price-to-earnings ratio than Alkermes, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings for Opus Genetics and Alkermes, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Opus Genetics | 1 | 1 | 16 | 1 | 2.89 |
| Alkermes | 1 | 5 | 12 | 1 | 2.68 |
Opus Genetics currently has a consensus target price of $12.71, indicating a potential upside of 282.96%. Alkermes has a consensus target price of $54.47, indicating a potential upside of 22.57%. Given Opus Genetics’ stronger consensus rating and higher probable upside, analysts plainly believe Opus Genetics is more favorable than Alkermes.
Volatility and Risk
Opus Genetics has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Alkermes has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500.
Institutional and Insider Ownership
15.0% of Opus Genetics shares are owned by institutional investors. Comparatively, 95.2% of Alkermes shares are owned by institutional investors. 11.7% of Opus Genetics shares are owned by company insiders. Comparatively, 4.6% of Alkermes shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Alkermes beats Opus Genetics on 8 of the 14 factors compared between the two stocks.
About Opus Genetics
Opus Genetics Inc. is a clinical-stage ophthalmic biopharmaceutical company, focuses on developing and commercializing therapies for the treatment of unmet needs of patients with refractive and retinal eye disorders. Opus Genetics Inc., formerly known as Ocuphire Pharma Inc., is based in Farmington Hills, Michigan.
About Alkermes
Alkermes plc, a biopharmaceutical company, researches, develops, and commercializes pharmaceutical products to address unmet medical needs of patients in therapeutic areas in the United States, Ireland, and internationally. It has a portfolio of proprietary commercial products for the treatment of alcohol dependence, opioid dependence, schizophrenia and bipolar I disorder and a pipeline of clinical and preclinical product candidates in development for neurological disorders. Its marketed products include ARISTADA, an intramuscular injectable suspension for the treatment of schizophrenia; ARISTADA INITIO for the treatment of schizophrenia in adults; VIVITROL for the treatment of alcohol and prevention of opioid dependence; and LYBALVI, an oral atypical antipsychotic drug candidate for the treatment of adults with schizophrenia and bipolar I disorder. It has collaboration agreements primarily with Janssen Pharmaceutica N.V., Janssen Pharmaceutica Inc, and Janssen Pharmaceutica International. The company also offers proprietary technology platforms to third parties to enable them to develop, commercialize, and manufacture products. Alkermes plc was founded in 1987 and is headquartered in Dublin, Ireland.
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