Ablynx (ABLYF) vs. Gilead Sciences (GILD) Critical Survey

Ablynx (OTCMKTS:ABLYF) and Gilead Sciences (NASDAQ:GILD) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Profitability

This table compares Ablynx and Gilead Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ablynx N/A N/A N/A
Gilead Sciences 9.52% 41.57% 13.79%

Volatility & Risk

Ablynx has a beta of 6.59, meaning that its share price is 559% more volatile than the S&P 500. Comparatively, Gilead Sciences has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Valuation & Earnings

This table compares Ablynx and Gilead Sciences’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ablynx $62.73 million 60.74 -$122.67 million ($1.97) -25.70
Gilead Sciences $26.11 billion 3.76 $4.63 billion $8.56 8.84

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

Insider & Institutional Ownership

78.0% of Gilead Sciences shares are held by institutional investors. 1.2% of Gilead Sciences shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Gilead Sciences pays an annual dividend of $2.28 per share and has a dividend yield of 3.0%. Ablynx does not pay a dividend. Gilead Sciences pays out 26.6% of its earnings in the form of a dividend. Gilead Sciences has increased its dividend for 2 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Ablynx and Gilead Sciences, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ablynx 0 0 1 0 3.00
Gilead Sciences 0 10 11 1 2.59

Ablynx presently has a consensus target price of $26.00, indicating a potential downside of 48.65%. Gilead Sciences has a consensus target price of $88.27, indicating a potential upside of 16.68%. Given Gilead Sciences’ higher probable upside, analysts plainly believe Gilead Sciences is more favorable than Ablynx.

Summary

Gilead Sciences beats Ablynx on 14 of the 18 factors compared between the two stocks.

Ablynx Company Profile

Ablynx NV, a late-stage clinical biopharmaceutical company, develops treatments for a range of therapeutic indications. The company develops Nanobodies that are proprietary therapeutic proteins based on single-domain antibody fragments for the treatment of inflammation, hematology, immuno-oncology, oncology, and respiratory diseases. Its clinical programs include caplacizumab, an anti-von Willebrand Factor Nanobody that has completed Phase III clinical trial to treat acquired thrombotic thrombocytopenic purpura; ALX-0171, which is in Phase IIb clinical trial for the treatment of respiratory syncytial virus infection; and Vobarilizumab, an anti-IL-6R Nanobody that has completed Phase IIb clinical trial for the treatment of rheumatoid arthritis, as well as in Phase II clinical trial to treat systemic lupus erythematosus. The company also develops ALX-0761, which is in Phase Ib clinical trial for the treatment of psoriasis, as well as various auto-immune disorders; Anti-VEGF/Ang2 Nanobody that is in Phase I clinical trial for patients with solid tumors; Anti-CX3CR1 Nanobody, which is in Phase I clinical trial for treating chronic kidney diseases; ozoralizumab, which has completed Phase I/IIa clinical trial for the treatment of auto-immune disorders with focus on rheumatoid arthritis; and ALX-0141, a trivalent Nanobody for the treatment of bone-loss related disorders comprising osteoporosis and bone metastasis, as well as completed a Phase I study in post-menopausal women. Ablynx NV has collaboration and alliance agreements with Merck & Co., Inc., AbbVie, Inc., Boehringer Ingelheim International GmbH, Merck KGaA, Eddingpharm, Novo Nordisk A/S, Novartis Pharma AG, Taisho Pharmaceutical Co., Ltd., and Sanofi S.A. The company was formerly known as MatchX and changed its name to Ablynx NV in June 2002. Ablynx NV was founded in 2001 and is headquartered in Ghent, Belgium.

Gilead Sciences Company Profile

Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes therapeutics in the areas of unmet medical needs in the United States, Europe, and internationally. The company's products include Biktarvy, Descovy, Odefsey, Genvoya, Stribild, Complera/Eviplera, Atripla, Truvada, Viread, Emtriva, and Tybost for the treatment of human immunodeficiency virus (HIV) infection in adults; and Vosevi, Vemlidy, Epclusa, Harvoni, Sovaldi, Viread, and Hepsera products for treating liver diseases. It also provides Yescarta, a chimeric antigen receptor T cell therapy for adult patients with relapsed or refractory large B-cell lymphoma; Zydelig, a PI3K delta inhibitor for certain blood cancers; Letairis, an oral formulation of an endothelin receptor antagonist for pulmonary arterial hypertension; Ranexa, a tablet to treat chronic angina; and Lexiscan, an injection for use as a pharmacologic stress agent in radionuclide myocardial perfusion imaging. In addition, the company offers Cayston, an inhaled antibiotic for the treatment of respiratory systems in cystic fibrosis patients; Tamiflu, an oral antiviral capsule for the treatment and prevention of influenza A and B; AmBisome, an antifungal agent to treat serious invasive fungal infections; and Macugen, an anti-angiogenic oligonucleotide to treat neovascular age-related macular degeneration. Further, it has product candidates in various stages of development for the treatment of HIV/AIDS and liver diseases, hematology/oncology, inflammation/respiratory diseases, and others. The company markets its products through its commercial teams; and in conjunction with third-party distributors and corporate partners. Gilead Sciences, Inc. has collaboration agreements with Bristol-Myers Squibb Company, Janssen Sciences Ireland UC, Japan Tobacco Inc., and Galapagos NV. The company was founded in 1987 and is headquartered in Foster City, California.

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