Head-To-Head Analysis: Viking Therapeutics (VKTX) & Wave Life Sciences (WVE)

Wave Life Sciences (NASDAQ: WVE) and Viking Therapeutics (NASDAQ:VKTX) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.

Earnings & Valuation

This table compares Wave Life Sciences and Viking Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wave Life Sciences $3.70 million 328.13 -$102.03 million ($3.85) -10.77
Viking Therapeutics N/A N/A -$20.57 million ($0.79) -12.97

Viking Therapeutics has lower revenue, but higher earnings than Wave Life Sciences. Viking Therapeutics is trading at a lower price-to-earnings ratio than Wave Life Sciences, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Wave Life Sciences has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, Viking Therapeutics has a beta of 2.74, indicating that its share price is 174% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Wave Life Sciences and Viking Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wave Life Sciences 0 0 5 0 3.00
Viking Therapeutics 0 0 7 0 3.00

Wave Life Sciences presently has a consensus target price of $55.20, indicating a potential upside of 33.17%. Viking Therapeutics has a consensus target price of $14.33, indicating a potential upside of 39.84%. Given Viking Therapeutics’ higher probable upside, analysts plainly believe Viking Therapeutics is more favorable than Wave Life Sciences.

Profitability

This table compares Wave Life Sciences and Viking Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wave Life Sciences -2,613.03% -76.93% -61.14%
Viking Therapeutics N/A -79.70% -59.44%

Insider & Institutional Ownership

80.8% of Wave Life Sciences shares are held by institutional investors. Comparatively, 34.7% of Viking Therapeutics shares are held by institutional investors. 44.2% of Wave Life Sciences shares are held by insiders. Comparatively, 3.9% of Viking Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Viking Therapeutics beats Wave Life Sciences on 7 of the 11 factors compared between the two stocks.

About Wave Life Sciences

Wave Life Sciences Ltd., a biotechnology company, designs, develops, and commercializes nucleic acid therapeutic candidates for genetically defined diseases by utilizing proprietary synthetic chemistry drug development platform. The company is primarily developing oligonucleotides that target genetic defects to either reduce the expression of disease-promoting proteins or transform the production of dysfunctional mutant proteins into the production of functional proteins. It focuses on proprietary programs in neurology in the central nervous system and neuromuscular system. The company has a research, license, and option agreement with Pfizer Inc. and Takeda Pharmaceutical Company Limited for the research, development, and commercialization of stereopure oligonucleotide therapeutics and oligonucleotide therapeutics, as well as a collaboration agreement with Deep Genomics Inc. for identifying novel therapies. Wave Life Sciences Ltd. was founded in 2012 and is based in Singapore.

About Viking Therapeutics

Viking Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development of novel therapies for metabolic and endocrine disorders. Its lead clinical program, VK5211, is an orally available, non-steroidal selective androgen receptor modulator in Phase II development for the treatment of patients recovering from non-elective hip fracture surgery; in Phase I clinical trials for improving lean body mass; and in pre-clinical trial for improving bone mineral density, bone mineral content, bone strength, and other measures. The company is also developing VK2809, an orally available, tissue and receptor-subtype selective agonist of the thyroid hormone receptor beta, which is in a Phase II clinical trial for the treatment of patients with hypercholesterolemia and fatty liver disease; and in a Phase I clinical trial to treat patients who suffer from glycogen storage disease type Ia. In addition, it is developing VK0214 for X-linked adrenoleukodystrophy, which is in pre-clinical stage. Viking Therapeutics, Inc. was founded in 2012 and is headquartered in San Diego, California.

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