Financial Analysis: AveXis (AVXS) & Cytokinetics (CYTK)

AveXis (NASDAQ: AVXS) and Cytokinetics (NASDAQ:CYTK) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for AveXis and Cytokinetics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AveXis 2 2 12 0 2.63
Cytokinetics 0 1 9 0 2.90

AveXis presently has a consensus price target of $109.88, indicating a potential upside of 14.24%. Cytokinetics has a consensus price target of $17.90, indicating a potential upside of 135.53%. Given Cytokinetics’ stronger consensus rating and higher probable upside, analysts plainly believe Cytokinetics is more favorable than AveXis.

Insider & Institutional Ownership

94.9% of AveXis shares are held by institutional investors. Comparatively, 71.9% of Cytokinetics shares are held by institutional investors. 18.6% of AveXis shares are held by insiders. Comparatively, 7.2% of Cytokinetics 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.

Earnings and Valuation

This table compares AveXis and Cytokinetics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
AveXis N/A N/A -$83.01 million ($5.58) -17.24
Cytokinetics $106.41 million 3.85 $16.45 million ($1.66) -4.58

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

Profitability

This table compares AveXis and Cytokinetics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AveXis N/A -49.27% -45.59%
Cytokinetics -172.27% -62.64% -29.08%

Summary

Cytokinetics beats AveXis on 6 of the 11 factors compared between the two stocks.

About AveXis

AveXis, Inc. is a clinical-stage gene therapy company. The Company operates through the developing and commercializing gene therapy treatments for patients suffering from neurological genetic diseases segment. The Company’s product candidate, AVXS-101, is its gene therapy product candidate that is in a Phase I clinical trial for the treatment of spinal muscular atrophy (SMA) Type 1, which is a genetic disorder characterized by motor neuron loss and associated muscle deterioration. The survival motor neuron (SMN) is a protein for normal motor neuron signaling and function. Patients with SMA Type 1 either have experienced a deletion of their SMN1 genes, which prevents them from producing adequate levels of functional SMN protein, or carry a mutation in their SMN1 gene. AVXS-101 is designed to deliver a functional human SMN gene into the nuclei of motor neurons that then generates an increase in SMN protein levels.

About Cytokinetics

Cytokinetics, Incorporated is a late-stage biopharmaceutical company. The Company is focused on discovering, developing and commercializing first-in-class muscle activators as potential treatments for debilitating diseases in which muscle performance is compromised and/or declining. It is focused on the discovery and development of small molecule therapeutics that modulate muscle function for the treatment of serious diseases and medical conditions. Its drug candidates, which are in clinical development include tirasemtiv, CK-2127107 and omecamtiv mecarbil. Its tirasemtiv and CK-2127107 are skeletal muscle troponin activators. It is developing tirasemtiv drug candidate for the treatment of Amyotrophic lateral sclerosis (ALS). The Company is developing CK-2127107 for the potential treatment of spinal muscular atrophy, chronic obstructive pulmonary disease and ALS. The Omecamtiv mecarbil is a cardiac muscle myosin activator, which is being evaluated for the treatment of heart failure.

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