Amylyx Pharmaceuticals (NASDAQ:AMLX – Get Free Report) and Lexicon Pharmaceuticals (NASDAQ:LXRX – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Institutional & Insider Ownership
95.8% of Amylyx Pharmaceuticals shares are owned by institutional investors. Comparatively, 74.7% of Lexicon Pharmaceuticals shares are owned by institutional investors. 10.9% of Amylyx Pharmaceuticals shares are owned by insiders. Comparatively, 14.0% of Lexicon Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Amylyx Pharmaceuticals and Lexicon Pharmaceuticals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Amylyx Pharmaceuticals | 1 | 0 | 6 | 2 | 3.00 |
| Lexicon Pharmaceuticals | 1 | 1 | 3 | 0 | 2.40 |
Amylyx Pharmaceuticals presently has a consensus price target of $43.71, suggesting a potential upside of 44.32%. Lexicon Pharmaceuticals has a consensus price target of $5.80, suggesting a potential upside of 224.02%. Given Lexicon Pharmaceuticals’ higher possible upside, analysts clearly believe Lexicon Pharmaceuticals is more favorable than Amylyx Pharmaceuticals.
Risk & Volatility
Amylyx Pharmaceuticals has a beta of -0.09, suggesting that its share price is 109% less volatile than the S&P 500. Comparatively, Lexicon Pharmaceuticals has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.
Earnings and Valuation
This table compares Amylyx Pharmaceuticals and Lexicon Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Amylyx Pharmaceuticals | $87.37 million | 44.57 | -$144.74 million | ($1.44) | -21.03 |
| Lexicon Pharmaceuticals | $49.80 million | 16.00 | -$50.34 million | ($0.14) | -12.79 |
Lexicon Pharmaceuticals has lower revenue, but higher earnings than Amylyx Pharmaceuticals. Amylyx Pharmaceuticals is trading at a lower price-to-earnings ratio than Lexicon Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Amylyx Pharmaceuticals and Lexicon Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Amylyx Pharmaceuticals | N/A | -41.54% | -38.91% |
| Lexicon Pharmaceuticals | -161.80% | -35.76% | -24.53% |
Summary
Lexicon Pharmaceuticals beats Amylyx Pharmaceuticals on 8 of the 15 factors compared between the two stocks.
About Amylyx Pharmaceuticals
Amylyx Pharmaceuticals, Inc is a biopharmaceutical company dedicated to developing treatments for rare and debilitating neurological diseases. Founded in 2013 and headquartered in Cambridge, Massachusetts, the company focuses on leveraging novel approaches to target cellular pathways implicated in neurodegeneration. Amylyx’s research platform centers on small-molecule therapies designed to protect neurons and support cellular health in patients with conditions that currently have limited or no disease-modifying treatment options.
About Lexicon Pharmaceuticals
Lexicon Pharmaceuticals is a biopharmaceutical company based in The Woodlands, Texas. Founded in 1995 as Lexicon Genetics, the company uses drug discovery and development research to create medicines for serious diseases, with a focus on areas of unmet medical need. Its commercial product, Inpefa (sotagliflozin), is approved in the United States to reduce the risk of cardiovascular death and worsening heart failure in adults with heart failure. Lexicon also develops investigational medicines, including candidates studied for neuropathic pain and other conditions.
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