Analyzing Kiniksa Pharmaceuticals (NASDAQ:KNSA) and Ionis Pharmaceuticals (NASDAQ:IONS)

Kiniksa Pharmaceuticals (NASDAQ:KNSA) and Ionis Pharmaceuticals (NASDAQ:IONS) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Risk and Volatility

Kiniksa Pharmaceuticals has a beta of -1.33, meaning that its share price is 233% less volatile than the S&P 500. Comparatively, Ionis Pharmaceuticals has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500.

Profitability

This table compares Kiniksa Pharmaceuticals and Ionis Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kiniksa Pharmaceuticals N/A -61.14% -54.38%
Ionis Pharmaceuticals 26.09% 22.23% 11.32%

Earnings and Valuation

This table compares Kiniksa Pharmaceuticals and Ionis Pharmaceuticals’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kiniksa Pharmaceuticals N/A N/A -$161.87 million ($2.99) -4.47
Ionis Pharmaceuticals $1.12 billion 6.17 $303.26 million $2.08 23.92

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

Analyst Ratings

This is a summary of current recommendations and price targets for Kiniksa Pharmaceuticals and Ionis Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kiniksa Pharmaceuticals 0 0 4 0 3.00
Ionis Pharmaceuticals 0 7 7 0 2.50

Kiniksa Pharmaceuticals presently has a consensus target price of $25.67, suggesting a potential upside of 92.12%. Ionis Pharmaceuticals has a consensus target price of $74.46, suggesting a potential upside of 49.67%. Given Kiniksa Pharmaceuticals’ stronger consensus rating and higher probable upside, research analysts clearly believe Kiniksa Pharmaceuticals is more favorable than Ionis Pharmaceuticals.

Insider and Institutional Ownership

28.7% of Kiniksa Pharmaceuticals shares are owned by institutional investors. Comparatively, 86.6% of Ionis Pharmaceuticals shares are owned by institutional investors. 70.6% of Kiniksa Pharmaceuticals shares are owned by insiders. Comparatively, 2.4% of Ionis Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Ionis Pharmaceuticals beats Kiniksa Pharmaceuticals on 10 of the 13 factors compared between the two stocks.

About Kiniksa Pharmaceuticals

Kiniksa Pharmaceuticals, Ltd., a clinical-stage biopharmaceutical company, focuses on the discovering, acquiring, developing, and commercializing therapeutic medicines for patients suffering from debilitating diseases with significant unmet medical need worldwide. Its clinical-stage product candidates include Rilonacept, which is in Phase II clinical trials for the treatment of recurrent pericarditis, an inflammatory cardiovascular disease; Mavrilimumab, a monoclonal antibody for the treatment of giant cell arteritis; and KPL-716, a monoclonal antibody, which is in Phase 1a/1b clinical trial for the treatment of prurigo nodularis and atopic dermatitis. The company's preclinical product candidates comprise KPL-404, a monoclonal antibody inhibitor of the CD40 co-stimulatory receptor; and KPL-045, a monoclonal antibody inhibitor of the CD30 ligand co-stimulatory molecule. Kiniksa Pharmaceuticals, Ltd. was founded in 2015 and is based in Hamilton, Bermuda.

About Ionis Pharmaceuticals

Ionis Pharmaceuticals, Inc. discovers and develops RNA-targeted therapeutics in the United States. The company offers SPINRAZA for spinal muscular atrophy (SMA) in pediatric and adult patients; and TEGSEDI, an injection for the treatment of polyneuropathy of hereditary transthyretin-mediated amyloidosis in adults. It is involved in developing neurology products that include IONIS-HTTRx for Huntington's diseases; and IONIS-SOD1Rx and IONIS-C9Rx for amyotrophic lateral sclerosis and IONIS-MAPTRx for Alzheimer's diseases. The company is also developing severe and rare disease products, such as WAYLIVRA, a treatment for familial chylomicronemia syndrome; WAYLIVRA, a treatment for familial partial lipodystrophy; AKCEA-TTR-LRx for transthyretin amyloidosis and IONIS-GHR-LRx for acromegaly; and IONIS-TMPRSS6-LRx for beta-thalassemia and iron toxicity, IONIS-PKKRx/IONIS-PKK-LRx for hereditary angioedema, and IONIS-ENAC-2.5Rx for cystic fibrosis. In addition, its cardio metabolic and renal drugs include AKCEA-ANGPTL3-LRx for cardio metabolic disorders, IONIS-FXIRx for clotting disorders, AKCEA-APO(a)-LRx and AKCEA-APOCIII-LRx for cardiovascular diseases, and IONIS-DGAT2Rx for nonalcoholic steatohepatitis; IONIS-AGT-LRX for the treatment of resistant hyper tension; and IONIS-FXI-LRx for clotting disorders and IONIS-AZ4-2.5-LRx for cardiovascular diseases. Further, the company develops products for oncology that include IONIS-AR-2.5Rx and danvatirsen for cancers; and IONIS-HBVRx and IONIS-HBV-LRx for hepatitis b virus infection, and IONIS-FB-LRx for compliment meditated disease, and IONIS-JBI1-2.5Rx for gastrointestinal autoimmune diseases. Ionis Pharmaceuticals, Inc. was founded in 1989 and is based in Carlsbad, California.

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