United Therapeutics (UTHR) and Avid Bioservices (NASDAQ:CDMO) Financial Contrast

Avid Bioservices (NASDAQ:CDMO) and United Therapeutics (NASDAQ:UTHR) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Profitability

This table compares Avid Bioservices and United Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avid Bioservices -3.52% -20.74% -13.57%
United Therapeutics 36.20% 22.63% 18.02%

Risk and Volatility

Avid Bioservices has a beta of 2.62, suggesting that its stock price is 162% more volatile than the S&P 500. Comparatively, United Therapeutics has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Avid Bioservices and United Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avid Bioservices 0 0 2 0 3.00
United Therapeutics 2 4 3 0 2.11

Avid Bioservices presently has a consensus target price of $10.50, suggesting a potential upside of 142.49%. United Therapeutics has a consensus target price of $133.88, suggesting a potential upside of 33.42%. Given Avid Bioservices’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Avid Bioservices is more favorable than United Therapeutics.

Earnings & Valuation

This table compares Avid Bioservices and United Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avid Bioservices $53.62 million 4.53 -$21.81 million ($0.50) -8.66
United Therapeutics $1.63 billion 2.69 $589.20 million $13.39 7.49

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

Insider and Institutional Ownership

40.8% of Avid Bioservices shares are held by institutional investors. Comparatively, 97.7% of United Therapeutics shares are held by institutional investors. 0.9% of Avid Bioservices shares are held by insiders. Comparatively, 8.2% of United Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

United Therapeutics beats Avid Bioservices on 10 of the 14 factors compared between the two stocks.

Avid Bioservices Company Profile

Avid Bioservices, Inc., a biologics contract development and manufacturing company, focuses on the development and current Good Manufacturing Practices (cGMP) manufacture of biopharmaceutical products derived from mammalian cell culture. It provides a range of process development, cGMP clinical, and commercial manufacturing services for the biotechnology and biopharmaceutical industries. The company produces monoclonal antibodies and recombinant proteins in batch, fed-batch, and perfusion modes; and offers services, including cGMP clinical and commercial product manufacturing, purification, bulk packaging, stability testing and regulatory strategy, submission, and support. It also provides various process development services, such as cell line development and optimization, cell culture and feed optimization, analytical methods development, and product characterization. The company was formerly known as Peregrine Pharmaceuticals, Inc. and changed its name to Avid Bioservices, Inc. in January 2018. Avid Bioservices, Inc. was founded in 1981 and is headquartered in Tustin, California.

United Therapeutics Company Profile

United Therapeutics Corporation, a biotechnology company, develops and commercializes products to address the unmet medical needs of patients with chronic and life-threatening diseases primarily in the United States and Europe. The company's commercial therapies include Remodulin, an infused formulation of the prostacyclin analogue treprostinil for subcutaneous and intravenous administration to diminish symptoms associated with exercise in pulmonary arterial hypertension (PAH) patients; Tyvaso, an inhaled formulation of treprostinil to enhace the exercise ability in PAH patients; Orenitram, a tablet dosage form of treprostinil to enhance the exercise capacity in PAH patients; Adcirca, an oral PDE-5 inhibitor to enhance the exercise ability in PAH patients; and Unituxin, a monoclonal antibody for treating neuroblastoma. It also engages in developing esuberaprost, RemoPro, Treprostinil Technosphere, Trevyent, ralinepag, and Aurora-GT to treat PAH; and the research and development of various organ transplantation-related technologies, including regenerative medicine, xenotransplantation, biomechanical lungs, and ex-vivo lung perfusion, as well as the development of medicine for other diseases. United Therapeutics Corporation has licensing and collaboration agreements with Medtronic, Inc. to develop and commercialize the implantable system for Remodulin in the United States, the United Kingdom, Canada, France, Germany, Italy, and Japan; DEKA Research & Development Corp. to develop a semi-disposable system for the subcutaneous delivery of Remodulin; MannKind Corporation to develop and license treprostinil inhalation powder, and Dreamboat and Cricket devices; Arena Pharmaceuticals, Inc. to develop ralinepag for the treatment of PAH; and Samumed LLC to develop SM04646, a phase I development-stage Wnt pathway inhibitor for treating idiopathic pulmonary fibrosis. United Therapeutics Corporation was founded in 1996 and is headquartered in Silver Spring, Maryland.

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