Analyzing Aldeyra Therapeutics (ALDX) and Insmed (INSM)

Aldeyra Therapeutics (NASDAQ: ALDX) and Insmed (NASDAQ:INSM) are both healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Insider and Institutional Ownership

47.9% of Aldeyra Therapeutics shares are held by institutional investors. Comparatively, 95.3% of Insmed shares are held by institutional investors. 19.0% of Aldeyra Therapeutics shares are held by insiders. Comparatively, 5.1% of Insmed shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Aldeyra Therapeutics and Insmed’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aldeyra Therapeutics N/A N/A -$18.69 million ($1.41) -4.72
Insmed N/A N/A -$176.27 million ($3.12) -9.69

Insmed is trading at a lower price-to-earnings ratio than Aldeyra Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Aldeyra Therapeutics and Insmed’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aldeyra Therapeutics N/A -67.43% -60.54%
Insmed N/A -100.23% -70.48%

Analyst Ratings

This is a summary of recent ratings for Aldeyra Therapeutics and Insmed, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aldeyra Therapeutics 0 0 5 0 3.00
Insmed 0 2 6 0 2.75

Aldeyra Therapeutics currently has a consensus price target of $19.40, indicating a potential upside of 191.73%. Insmed has a consensus price target of $37.25, indicating a potential upside of 23.26%. Given Aldeyra Therapeutics’ stronger consensus rating and higher possible upside, equities analysts clearly believe Aldeyra Therapeutics is more favorable than Insmed.

Risk & Volatility

Aldeyra Therapeutics has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Insmed has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Summary

Aldeyra Therapeutics beats Insmed on 8 of the 11 factors compared between the two stocks.

About Aldeyra Therapeutics

Aldeyra Therapeutics, Inc., formerly Aldexa Therapeutics, Inc., is a biotechnology company. The Company’s principal activities include raising capital and research and development activities. The Company’s segment is the identification and development of a treatment for diseases related to high levels of aldehydes. The Company is focused on the development of products for diseases caused by inflammation and inborn errors of metabolism that are caused by naturally occurring toxic and pro-inflammatory chemical species known as aldehydes. The Company has developed a series of aldehyde traps, molecules that are designed to sequester and allow for the degradation of aldehydes. The Company’s aldehyde trap, NS2, is a product candidate that is under development for the treatment of allergic conjunctivitis and related rare allergic ocular diseases, noninfectious anterior uveitis, sjogren-larsson syndrome (SLS) and succinic semi-aldehyde dehydrogenase deficiency.

About Insmed

Insmed Incorporated is a biopharmaceutical company. The Company operates through development and commercialization of therapies for patients with rare diseases segment. Its lead product candidate is ARIKAYCE, or liposomal amikacin for inhalation (LAI), which is in late-stage development for adult patients with treatment refractory nontuberculous mycobacteria (NTM) lung disease caused by Mycobacterium avium complex (MAC). Its earlier-stage pipeline includes preclinical compounds that the Company is evaluating in multiple rare diseases of unmet medical need, including methicillin-resistant staph aureus and NTM. Its earlier clinical-stage pipeline includes INS1007 and INS1009. INS1007 is an oral, reversible inhibitor of dipeptidyl peptidase 1. INS1009 is an inhaled nanoparticle formulation of a treprostinil prodrug that may offer a differentiated product profile for rare pulmonary disorders, including pulmonary arterial hypertension. It has completed a Phase I study of INS1009.

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