Depomed (DEPO) & Aduro BioTech (ADRO) Head-To-Head Review

Depomed (NASDAQ:DEPO) and Aduro BioTech (NASDAQ:ADRO) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Profitability

This table compares Depomed and Aduro BioTech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Depomed N/A N/A N/A
Aduro BioTech -632.05% -54.84% -23.61%

Valuation & Earnings

This table compares Depomed and Aduro BioTech’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Depomed N/A N/A N/A N/A N/A
Aduro BioTech $15.09 million 19.53 -$95.36 million ($1.16) -3.18

Depomed has higher earnings, but lower revenue than Aduro BioTech.

Institutional and Insider Ownership

98.9% of Depomed shares are owned by institutional investors. Comparatively, 44.8% of Aduro BioTech shares are owned by institutional investors. 2.3% of Depomed shares are owned by company insiders. Comparatively, 5.2% of Aduro BioTech shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Depomed and Aduro BioTech, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Depomed 0 1 1 0 2.50
Aduro BioTech 1 0 7 0 2.75

Depomed presently has a consensus price target of $9.00, suggesting a potential upside of ∞. Aduro BioTech has a consensus price target of $8.66, suggesting a potential upside of 134.69%. Given Depomed’s higher probable upside, research analysts clearly believe Depomed is more favorable than Aduro BioTech.

Summary

Depomed beats Aduro BioTech on 5 of the 9 factors compared between the two stocks.

Depomed Company Profile

Depomed, Inc., a specialty pharmaceutical company, engages in the development, sale, and licensing of products for pain and other central nervous system conditions in the United States. It offers Gralise (gabapentin), an once-daily product for the management of postherpetic neuralgia; CAMBIA (diclofenac potassium for oral solution), a non-steroidal anti-inflammatory drug indicated for acute treatment of migraine attacks in adults; and Zipsor (diclofenac potassium) liquid filled capsule, a non-steroidal anti-inflammatory drug for the treatment of mild to moderate acute pain in adults. The company also provides NUCYNTA ER (tapentadol extended release tablet), a product for the management of pain severe enough to long term opioid treatment, including neuropathic pain associated with diabetic peripheral neuropathy (DPN) in adults; and NUCYNTA IR (tapentadol), a product for the management of moderate to severe acute pain in adults. In addition, it is involved in the clinical development of Cebranopadol for the treatment of chronic nociceptive and neuropathic pain. Depomed, Inc. has a collaboration and license agreement with Ironwood Pharmaceuticals, Inc.; and a license agreement with Janssen Pharmaceuticals, Inc. based on its proprietary Acuform gastroretentive drug delivery technology. The company sells its products to wholesalers and retail pharmacies. Depomed, Inc. was founded in 1995 and is headquartered in Newark, California.

Aduro BioTech Company Profile

Aduro BioTech, Inc., an immunotherapy company, focuses on the discovery, development, and commercialization of therapies that transform the treatment of challenging diseases. The company is developing ADU-S100, which is in Phase I monotherapy study, as well as in Phase 1b combination study with an anti-PD1 immune checkpoint inhibitor; ADU-214 that is in Phase I clinical trials for the treatment of lung cancer; and ADU-741 for the treatment of prostate cancer. Its products pipeline also comprises BION-1301, a B-select monoclonal antibody novel therapy for multiple myeloma; A PRoliferation-Inducing Ligand for the treatment of multiple myeloma, chronic lymphocytic leukemia, and colorectal carcinoma; CD27, a co-stimulatory receptor for the treatment of cancer; and CTLA-4 for the treatment of advanced melanoma and other cancers. The company's pLADD program is based on proprietary attenuated strains of Listeria that have been engineered to express tumor neo antigens that are specific to an individual patient's tumor. It has collaboration agreements with Novartis Pharmaceuticals Corporation, Janssen Biotech, Inc, and Merck. The company was formerly known as Oncologic, Inc. and changed its name to Aduro BioTech, Inc. in June 2008. Aduro BioTech, Inc. was founded in 2000 and is based in Berkeley, California.

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