Financial Analysis: Achaogen (NASDAQ:AKAO) and NextCure (NASDAQ:NXTC)

Achaogen (NASDAQ:AKAO) and NextCure (NASDAQ:NXTC) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares Achaogen and NextCure’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Achaogen -2,136.94% -357.49% -127.68%
NextCure N/A N/A N/A

Institutional & Insider Ownership

31.9% of Achaogen shares are held by institutional investors. 7.8% of Achaogen shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Achaogen and NextCure’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Achaogen $8.73 million 0.00 -$186.51 million ($3.70) N/A
NextCure N/A N/A -$22.80 million N/A N/A

NextCure has lower revenue, but higher earnings than Achaogen.

Analyst Ratings

This is a summary of current ratings and target prices for Achaogen and NextCure, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Achaogen 0 8 0 0 2.00
NextCure 0 0 3 0 3.00

Achaogen currently has a consensus price target of $6.60, indicating a potential upside of ∞. NextCure has a consensus price target of $25.33, indicating a potential upside of 30.99%. Given Achaogen’s higher possible upside, equities analysts clearly believe Achaogen is more favorable than NextCure.

Summary

NextCure beats Achaogen on 6 of the 10 factors compared between the two stocks.

About Achaogen

Achaogen, Inc., a late-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of antibacterial treatments against multi-drug resistant (MDR) gram-negative infections in the United States. The company is principally developing plazomicin for the treatment of serious bacterial infections, including urinary tract infections, blood stream infections, and other infections due to MDR enterobacteriaceae comprising carbapenem-resistant enterobacteriaceae. It is also involved in the development of antibacterial candidate C-Scape, an orally-administered combination of clavulanate and ceftibuten, which targets serious bacterial infections due to expanded spectrum beta-lactamases producing enterobacteriaceae; and therapeutic antibody discovery program. The company has license and collaboration agreements with Thermo Fisher Scientific, Inc. to develop and commercialize an assay to support plazomicin; Crystal Biosciences, Inc. to discover monoclonal antibodies against multiple targets; Ionis Pharmaceuticals, Inc. for certain patents relating to aminoglycoside antibacterial compounds and related know-how to develop and commercialize certain novel aminoglycoside antibacterial compounds; and Hovione Limited to manufacture the active pharmaceutical ingredient for plazomicin. The company was incorporated in 2002 and is based in South San Francisco, California.

About NextCure

There is no company description available for NextCure Inc.

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