Seres Therapeutics (NASDAQ: MCRB) and Ascendis Pharma A/S (NASDAQ:ASND) 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, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.
This is a summary of current ratings for Seres Therapeutics and Ascendis Pharma A/S, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ascendis Pharma A/S||0||1||5||0||2.83|
Seres Therapeutics presently has a consensus price target of $18.75, indicating a potential upside of 87.88%. Ascendis Pharma A/S has a consensus price target of $36.95, indicating a potential upside of 5.37%. Given Seres Therapeutics’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Seres Therapeutics is more favorable than Ascendis Pharma A/S.
Valuation and Earnings
This table compares Seres Therapeutics and Ascendis Pharma A/S’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Seres Therapeutics||$22.08 million||18.31||-$92.65 million||($2.41)||-4.14|
|Ascendis Pharma A/S||$3.64 million||313.14||-$105.45 million||($3.22)||-10.89|
Seres Therapeutics has higher revenue and earnings than Ascendis Pharma A/S. Ascendis Pharma A/S is trading at a lower price-to-earnings ratio than Seres Therapeutics, indicating that it is currently the more affordable of the two stocks.
This table compares Seres Therapeutics and Ascendis Pharma A/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ascendis Pharma A/S||-2,977.70%||-67.76%||-60.93%|
Risk & Volatility
Seres Therapeutics has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, Ascendis Pharma A/S has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.
Institutional and Insider Ownership
74.8% of Seres Therapeutics shares are held by institutional investors. Comparatively, 64.0% of Ascendis Pharma A/S shares are held by institutional investors. 41.9% of Seres Therapeutics shares are held by company insiders. Comparatively, 40.0% of Ascendis Pharma A/S shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Seres Therapeutics beats Ascendis Pharma A/S on 10 of the 13 factors compared between the two stocks.
Seres Therapeutics Company Profile
Seres Therapeutics, Inc. is a microbiome therapeutics platform company. The Company is engaged in developing a class of biological drugs, which is referred as Ecobiotic microbiome therapeutics. The Company’s drugs are designed to restore health by repairing the function of a dysbiotic microbiome. The Company is focused on implementing its microbiome therapeutics platform to develop Ecobiotic microbiome therapeutics that treats dysbiosis in the colonic microbiome. SER-109 is its lead product candidate, which is designed to prevent further recurrences of Clostridium difficile infection (CDI). The Company is developing additional product candidates, including SER-262 to prevent an initial recurrence of primary CDI; SER-287 and SER-301, to treat inflammatory bowel disease (IBD), including ulcerative colitis, and SER-155 to treat enteric bacterial pathogens.
Ascendis Pharma A/S Company Profile
Ascendis Pharma A/S is a clinical-stage biopharmaceutical company. The Company is engaged in applying its TransCon technology to develop sustained release prodrug therapies with several product candidates in clinical and preclinical development. The Company is developing its product candidate, TransCon human growth hormone (TransCon hGH) for once-weekly administration to treat growth hormone deficiency (GHD) and other indications. In addition to TransCon hGH, the Company has developed a pipeline of long-acting prodrug product candidates, such as TransCon Treprostinil for the treatment of pulmonary arterial hypertension (PAH), TransCon Peptides for the treatment of diabetes and TransCon Ranibizumab for the treatment of ophthalmology. It is also using its TransCon technology platform to develop TransCon Parathyroid Hormone (TransCon PTH) for hypoparathyroidism, a rare endocrine disorder of calcium and phosphate metabolism.
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