Financial Analysis: Iterum Therapeutics (NASDAQ:ITRM) vs. AstraZeneca (NYSE:AZN)

Iterum Therapeutics (NASDAQ:ITRM) and AstraZeneca (NYSE:AZN) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Iterum Therapeutics and AstraZeneca”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iterum Therapeutics	$390,000.00	4.10	-$24.77 million	($0.75)	-0.04
AstraZeneca	$58.74 billion	4.88	$10.22 billion	$7.07	26.15

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

Insider and Institutional Ownership

9.2% of Iterum Therapeutics shares are held by institutional investors. Comparatively, 20.4% of AstraZeneca shares are held by institutional investors. 2.0% of Iterum Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Iterum Therapeutics has a beta of 2.96, meaning that its stock price is 196% more volatile than the S&P 500. Comparatively, AstraZeneca has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500.

Profitability

This table compares Iterum Therapeutics and AstraZeneca’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iterum Therapeutics	N/A	N/A	-65.54%
AstraZeneca	17.68%	31.85%	13.62%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Iterum Therapeutics and AstraZeneca, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iterum Therapeutics	1	2	0	0	1.67
AstraZeneca	0	3	16	0	2.84

AstraZeneca has a consensus price target of $206.67, suggesting a potential upside of 11.79%. Given AstraZeneca’s stronger consensus rating and higher possible upside, analysts plainly believe AstraZeneca is more favorable than Iterum Therapeutics.

Summary

AstraZeneca beats Iterum Therapeutics on 12 of the 14 factors compared between the two stocks.

About Iterum Therapeutics

Iterum Therapeutics plc (NASDAQ:ITRM) is an Ireland-based pharmaceutical company focused on developing and commercializing anti-infective therapies for infections caused by drug-resistant bacteria. The company’s lead product is sulopenem, a penem-class antibiotic designed to provide activity against a broad range of pathogens. In 2024, the U.S. Food and Drug Administration approved Orlynvah, an oral combination of sulopenem etzadroxil and probenecid, for the treatment of uncomplicated urinary tract infections in adult women when alternative oral antibacterial treatments are not suitable.

About AstraZeneca

AstraZeneca plc is a global, science-led biopharmaceutical company headquartered in Cambridge, United Kingdom. The company discovers, develops and commercializes prescription medicines, with a focus on oncology, biopharmaceuticals and rare diseases. Its research and commercial operations serve patients and healthcare systems across more than 100 countries. AstraZeneca’s portfolio includes medicines for cancer, respiratory and immune-mediated conditions, cardiovascular, renal and metabolic diseases, and rare disorders.