Analyzing Merrimack Pharmaceuticals (MACK) and Alnylam Pharmaceuticals (ALNY)

Merrimack Pharmaceuticals (NASDAQ: MACK) and Alnylam Pharmaceuticals (NASDAQ:ALNY) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Valuation & Earnings

This table compares Merrimack Pharmaceuticals and Alnylam Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Merrimack Pharmaceuticals $144.27 million 1.08 -$87.01 million $31.50 0.37
Alnylam Pharmaceuticals $66.00 million 169.44 -$436.51 million ($5.12) -23.81

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

Analyst Recommendations

This is a summary of current ratings and price targets for Merrimack Pharmaceuticals and Alnylam Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Merrimack Pharmaceuticals 0 4 0 0 2.00
Alnylam Pharmaceuticals 3 4 14 0 2.52

Merrimack Pharmaceuticals currently has a consensus price target of $42.50, suggesting a potential upside of 262.01%. Alnylam Pharmaceuticals has a consensus price target of $110.15, suggesting a potential downside of 9.65%. Given Merrimack Pharmaceuticals’ higher probable upside, equities analysts clearly believe Merrimack Pharmaceuticals is more favorable than Alnylam Pharmaceuticals.

Profitability

This table compares Merrimack Pharmaceuticals and Alnylam Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Merrimack Pharmaceuticals N/A N/A -99.74%
Alnylam Pharmaceuticals -670.81% -45.53% -34.43%

Institutional & Insider Ownership

94.4% of Alnylam Pharmaceuticals shares are owned by institutional investors. 8.5% of Merrimack Pharmaceuticals shares are owned by insiders. Comparatively, 4.3% of Alnylam Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Merrimack Pharmaceuticals has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, Alnylam Pharmaceuticals has a beta of 2.97, indicating that its share price is 197% more volatile than the S&P 500.

Summary

Merrimack Pharmaceuticals beats Alnylam Pharmaceuticals on 7 of the 13 factors compared between the two stocks.

Merrimack Pharmaceuticals Company Profile

Merrimack Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is engaged in discovering, developing and commercializing medicines consisting of therapeutics paired with companion diagnostics for the treatment of cancer. The Company has one marketed therapeutic oncology product and multiple targeted therapeutic oncology candidates in clinical development. Its advanced program is its therapeutic MM-398, which it markets in the United States under the brand name ONIVYDE. Its other clinical stage product candidates include MM-121, MM-141, MM-310, MM-302 and MM-151. The Company is developing in vitro and in vivo diagnostics for use with each of its oncology therapeutic product candidates. Its in vitro diagnostic agents employ biophysical or biochemical markers of cancer, or biomarkers. Its in vivo diagnostics take the form of imaging agents that may help identify patients likely to benefit from its therapeutic products by measuring deposition of its products in the tumor.

Alnylam Pharmaceuticals Company Profile

Alnylam Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is engaged in the discovery, development and commercialization of ribonucleic acid (RNA) interference (RNAi) therapeutics. The Company is focused on the use of its N-acetylgalactosamine (GalNAc)-conjugate platform for delivery of small interfering RNAs (siRNAs). Its pipeline of investigational RNAi therapeutics focuses on three Strategic Therapeutic Areas (STArs): Genetic Medicines, with multiple product candidates for the treatment of rare diseases; Cardio-Metabolic Diseases, with product candidates directed toward genetically validated, liver-expressed disease targets for unmet needs in cardiovascular and metabolic diseases, and Hepatic Infectious Diseases, with product candidates designed to address the global health challenges of hepatic infectious diseases, beginning with hepatitis B and hepatitis D viral infections. The Company’s lead product, Patisiran, is formulated utilizing lipid nanoparticles (LNPs).

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