Comparing Radius Health (RDUS) & Intercept Pharmaceuticals (ICPT)

Intercept Pharmaceuticals (NASDAQ: ICPT) and Radius Health (NASDAQ:RDUS) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Insider & Institutional Ownership

83.1% of Intercept Pharmaceuticals shares are held by institutional investors. Comparatively, 97.7% of Radius Health shares are held by institutional investors. 9.2% of Intercept Pharmaceuticals shares are held by company insiders. Comparatively, 15.0% of Radius Health shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Intercept Pharmaceuticals and Radius Health’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Intercept Pharmaceuticals $70.92 million 36.84 -$361.26 million ($15.50) -6.71
Radius Health $980,000.00 1,576.80 -$225.19 million ($5.19) -6.84

Radius Health has higher revenue, but lower earnings than Intercept Pharmaceuticals. Radius Health is trading at a lower price-to-earnings ratio than Intercept Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Intercept Pharmaceuticals and Radius Health, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intercept Pharmaceuticals 1 4 10 0 2.60
Radius Health 1 2 4 0 2.43

Intercept Pharmaceuticals presently has a consensus price target of $213.31, suggesting a potential upside of 104.95%. Radius Health has a consensus price target of $53.60, suggesting a potential upside of 50.90%. Given Intercept Pharmaceuticals’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Intercept Pharmaceuticals is more favorable than Radius Health.

Profitability

This table compares Intercept Pharmaceuticals and Radius Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intercept Pharmaceuticals -543.35% -135.24% -54.37%
Radius Health N/A -79.46% -71.59%

Risk and Volatility

Intercept Pharmaceuticals has a beta of -2.01, indicating that its share price is 301% less volatile than the S&P 500. Comparatively, Radius Health has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Summary

Radius Health beats Intercept Pharmaceuticals on 8 of the 13 factors compared between the two stocks.

Intercept Pharmaceuticals Company Profile

Intercept Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of therapeutics to treat non-viral, progressive liver diseases. The Company’s product candidates have the potential to treat orphan and more prevalent diseases for which there are limited therapeutic solutions. The Company’s product candidate, obeticholic acid (OCA), is a bile acid analog, a chemical substance that has a structure based on a naturally occurring human bile acid that selectively binds to and activates the farnesoid X receptor (FXR). In addition to OCA, it is developing other bile acid analog compounds targeting FXR and a second dedicated bile acid receptor called TGR5, which is a target of interest for the treatment of type 2 diabetes and other gastrointestinal indications. The Company is also developing other products INT-767 for the treatment of fibrosis and INT-777 for the treatment of type 2 diabetes.

Radius Health Company Profile

Radius Health, Inc. is a biopharmaceutical company. The Company is focused on the developing therapeutics in the areas of osteoporosis, oncology and endocrine diseases. The Company’s lead investigational product candidate, TYMLOS (abaloparatide-SC) injection is developed for the treatment of postmenopausal women with osteoporosis at high risk for fracture. The Company’s clinical pipeline also includes an investigational abaloparatide transdermal patch for potential use in osteoporosis and the investigational drug elacestrant (RAD1901) for potential use in hormone-driven and/or hormone-resistant breast cancer, and vasomotor symptoms in postmenopausal women. Its RAD140 is a non-steroidal, selective androgen receptor modulator (SARM). RAD140 is under development for potential use in hormone receptor positive breast cancer.

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