Rhythm Pharmaceuticals (NASDAQ:RYTM – Get Free Report) and ADMA Biologics (NASDAQ:ADMA – Get Free Report) are both mid-cap healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.
Valuation and Earnings
This table compares Rhythm Pharmaceuticals and ADMA Biologics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rhythm Pharmaceuticals | $189.76 million | 32.52 | -$196.54 million | ($3.11) | -28.95 |
| ADMA Biologics | $510.17 million | 4.86 | $146.93 million | $0.70 | 15.82 |
ADMA Biologics has higher revenue and earnings than Rhythm Pharmaceuticals. Rhythm Pharmaceuticals is trading at a lower price-to-earnings ratio than ADMA Biologics, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations for Rhythm Pharmaceuticals and ADMA Biologics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rhythm Pharmaceuticals | 1 | 3 | 18 | 0 | 2.77 |
| ADMA Biologics | 0 | 3 | 3 | 0 | 2.50 |
Rhythm Pharmaceuticals currently has a consensus price target of $142.50, suggesting a potential upside of 58.26%. ADMA Biologics has a consensus price target of $18.67, suggesting a potential upside of 68.55%. Given ADMA Biologics’ higher probable upside, analysts plainly believe ADMA Biologics is more favorable than Rhythm Pharmaceuticals.
Risk and Volatility
Rhythm Pharmaceuticals has a beta of 2.01, indicating that its stock price is 101% more volatile than the S&P 500. Comparatively, ADMA Biologics has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.
Institutional & Insider Ownership
75.7% of ADMA Biologics shares are held by institutional investors. 5.9% of Rhythm Pharmaceuticals shares are held by company insiders. Comparatively, 3.9% of ADMA Biologics shares are held 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.
Profitability
This table compares Rhythm Pharmaceuticals and ADMA Biologics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rhythm Pharmaceuticals | -85.59% | -159.87% | -44.00% |
| ADMA Biologics | 32.98% | 40.17% | 26.97% |
Summary
ADMA Biologics beats Rhythm Pharmaceuticals on 9 of the 14 factors compared between the two stocks.
About Rhythm Pharmaceuticals
Rhythm Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the rare neuroendocrine diseases. The company's lead product candidate is IMCIVREE (setmelanotide), a rare melanocortin-4 receptor for the treatment of pro-opiomelanocortin (POMC), proprotein convertase subtilisin/kexin type 1, leptin receptor (LEPR) deficiency obesity, and Bardet-Biedl and Alström syndrome. It is in Phase 3 clinical trials for treating POMC or LEPR heterozygous deficiency obesities, steroid receptor coactivator 1 deficiency obesity, SH2B1 deficiency obesity, MC4 receptor deficiency obesity, and other MC4R disorders. The company has licensing agreements with LG Chem, Ltd; Ipsen Pharma S.A.S; Camurus; RareStone Group Ltd.; and LG Chem, Ltd. The company was formerly known as Rhythm Metabolic, Inc. and changed its name to Rhythm Pharmaceuticals, Inc. in October 2015. Rhythm Pharmaceuticals, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.
About ADMA Biologics
ADMA Biologics, Inc., a biopharmaceutical company, engages in developing, manufacturing, and marketing specialty plasma-derived biologics for the treatment of immune deficiencies and infectious diseases in the United States and internationally. The company offers BIVIGAM, an intravenous immune globulin (IVIG) product indicated for the treatment of primary humoral immunodeficiency (PI); ASCENIV, an IVIG product for the treatment of PI; and Nabi-HB for the treatment of acute exposure to blood containing Hepatitis B surface antigen and other listed exposures to Hepatitis B. It develops a pipeline of plasma-derived therapeutics, including products related to the methods of treatment and prevention of S. pneumonia infection for an immunoglobulin. In addition, it operates source plasma collection facilities. The company sells its products through independent distributors, drug wholesalers, specialty pharmacies, and other alternate site providers. ADMA Biologics, Inc. was incorporated in 2004 and is headquartered in Ramsey, New Jersey.
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