Financial Survey: Ironwood Pharmaceuticals (NASDAQ:IRWD) vs. Scienture (NASDAQ:SCNX)

Scienture (NASDAQ:SCNXGet Free Report) and Ironwood Pharmaceuticals (NASDAQ:IRWDGet Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Profitability

This table compares Scienture and Ironwood Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Scienture -10,364.22% -24.47% -19.30%
Ironwood Pharmaceuticals -2.25% -2.46% 2.19%

Analyst Ratings

This is a summary of current recommendations for Scienture and Ironwood Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Scienture 1 0 0 0 1.00
Ironwood Pharmaceuticals 1 6 1 0 2.00

Ironwood Pharmaceuticals has a consensus target price of $4.94, indicating a potential upside of 233.78%. Given Ironwood Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Ironwood Pharmaceuticals is more favorable than Scienture.

Valuation and Earnings

This table compares Scienture and Ironwood Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Scienture $128,202.00 136.38 $9.07 million N/A N/A
Ironwood Pharmaceuticals $308.52 million 0.78 $880,000.00 ($0.05) -29.60

Scienture has higher earnings, but lower revenue than Ironwood Pharmaceuticals.

Insider and Institutional Ownership

5.7% of Scienture shares are owned by institutional investors. 49.7% of Scienture shares are owned by company insiders. Comparatively, 12.7% of Ironwood Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Scienture has a beta of 3.11, indicating that its stock price is 211% more volatile than the S&P 500. Comparatively, Ironwood Pharmaceuticals has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.

Summary

Ironwood Pharmaceuticals beats Scienture on 7 of the 12 factors compared between the two stocks.

About Scienture

(Get Free Report)

Scienture Holdings, Inc. engages in the provision of health services and pharmaceutical products. It focuses on addressing underserved patients and indications through novel product concepts and innovation. The company was founded on July 15, 2005 and is headquartered in Lutz, FL.

About Ironwood Pharmaceuticals

(Get Free Report)

Ironwood Pharmaceuticals, Inc., a healthcare company, focuses on the development and commercialization of gastrointestinal (GI) products. It markets linaclotide, a guanylate cyclase type-C (GC-C) agonist for the treatment of adults suffering from irritable bowel syndrome with constipation or chronic idiopathic constipation under the LINZESS name in the United States, Mexico, Japan, Saudi Arabia, and China, as well as under the CONSTELLA name in the Canada and European countries. The company is also developing IW-3300, a GC-C agonist for the treatment of visceral pain conditions, including interstitial cystitis/bladder pain syndrome and endometriosis; Apraglutide, a next-generation, long-acting synthetic peptide analog of glucagon-like peptide-2, as a differentiated therapeutic for rare diseases, including short bowel syndrome dependent on parenteral support and acute graft versus host disease; and CNP-104, an immune nanoparticle for the treatment of primary biliary cholangitis. The company has strategic partnerships with AbbVie Inc., AstraZeneca AB, and Astellas Pharma Inc. for the development and commercialization of linaclotide. The company was formerly known as Microbia, Inc. and changed its name to Ironwood Pharmaceuticals, Inc. in April 2008. Ironwood Pharmaceuticals, Inc. was incorporated in 1998 and is headquartered in Boston, Massachusetts.

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