Cytokinetics (NASDAQ:CYTK – Get Free Report) and PTC Therapeutics (NASDAQ:PTCT – Get Free Report) are both mid-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.
Risk and Volatility
Cytokinetics has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, PTC Therapeutics has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.
Earnings and Valuation
This table compares Cytokinetics and PTC Therapeutics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cytokinetics | $87.21 million | 95.54 | -$589.53 million | ($6.29) | -10.83 |
| PTC Therapeutics | $1.78 billion | 3.89 | -$363.30 million | $8.56 | 10.08 |
PTC Therapeutics has higher revenue and earnings than Cytokinetics. Cytokinetics is trading at a lower price-to-earnings ratio than PTC Therapeutics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Cytokinetics and PTC Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cytokinetics | -707.17% | N/A | -45.52% |
| PTC Therapeutics | 35.65% | -106.31% | 30.61% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for Cytokinetics and PTC Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cytokinetics | 1 | 3 | 13 | 0 | 2.71 |
| PTC Therapeutics | 1 | 6 | 10 | 0 | 2.53 |
Cytokinetics presently has a consensus price target of $77.86, indicating a potential upside of 14.24%. PTC Therapeutics has a consensus price target of $75.40, indicating a potential downside of 12.58%. Given Cytokinetics’ stronger consensus rating and higher probable upside, analysts clearly believe Cytokinetics is more favorable than PTC Therapeutics.
Summary
PTC Therapeutics beats Cytokinetics on 7 of the 12 factors compared between the two stocks.
About Cytokinetics
Cytokinetics, Incorporated, a late-stage biopharmaceutical company, focuses on discovering, developing, and commercializing muscle activators and inhibitors as potential treatments for debilitating diseases. The company develops small molecule drug candidates primarily engineered to impact muscle function and contractility. Its drug candidates include omecamtiv mecarbil, a novel cardiac myosin activator that is in Phase III clinical trial in patients with heart failure. The company also develops CK-136, a novel cardiac troponin activator that is in Phase I clinical trial; CK-586, a small molecule cardiac myosin inhibitor, that is in Phase I clinical trial; and aficamten, a novel cardiac myosin inhibitor, which is in Phase III clinical trial for the treatment of patients with symptomatic obstructive hypertrophic cardiomyopathy. Cytokinetics, Incorporated has a strategic alliance with Ji Xing Pharmaceuticals Limited. The company was incorporated in 1997 and is headquartered in South San Francisco, California.
About PTC Therapeutics
PTC Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of medicines to patients with rare disorders in the United States and internationally. The company offers Translarna and Emflaza for the treatment of Duchenne muscular dystrophy; Upstaza to treat aromatic l-amino acid decarboxylas (AADC) deficiency, a central nervous system disorder; Tegsedi and Waylivra for the treatment of rare diseases; and Evrysdi to treat spinal muscular atrophy (SMA) in adults and children. Its development pipeline products include Sepiapterin for the treatment of phenylketonuria; PTC518 splicing platform, which is being developed for the treatment of Huntington's disease; and ferroptosis and inflammation platforms, including vatiquinone to treat Friedreich ataxia and utreloxastat for the treatment of amyotrophic lateral sclerosis. The company distributes its products through third-party distributors. It has collaborations with F. Hoffman-La Roche Ltd, Hoffman-La Roche Inc., the SMA Foundation, National Taiwan University, Akcea Therapeutics, Inc., and Shiratori Pharmaceutical Co., Ltd. PTC Therapeutics, Inc. was incorporated in 1998 and is headquartered in South Plainfield, New Jersey.
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