Comparing Ardelyx (NASDAQ:ARDX) & United Therapeutics (NASDAQ:UTHR)

Ardelyx (NASDAQ:ARDXGet Free Report) and United Therapeutics (NASDAQ:UTHRGet Free Report) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Institutional and Insider Ownership

58.9% of Ardelyx shares are owned by institutional investors. Comparatively, 94.1% of United Therapeutics shares are owned by institutional investors. 5.3% of Ardelyx shares are owned by insiders. Comparatively, 8.6% of United Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Ardelyx and United Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ardelyx 1 0 9 1 2.91
United Therapeutics 0 2 10 0 2.83

Ardelyx presently has a consensus price target of $15.73, suggesting a potential upside of 208.98%. United Therapeutics has a consensus price target of $644.82, suggesting a potential upside of 21.82%. Given Ardelyx’s stronger consensus rating and higher possible upside, analysts plainly believe Ardelyx is more favorable than United Therapeutics.

Risk and Volatility

Ardelyx has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, United Therapeutics has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Valuation & Earnings

This table compares Ardelyx and United Therapeutics”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ardelyx $407.32 million 3.09 -$61.60 million ($0.23) -22.13
United Therapeutics $3.18 billion 7.06 $1.33 billion $27.09 19.54

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

Profitability

This table compares Ardelyx and United Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ardelyx -13.58% -38.11% -11.85%
United Therapeutics 40.62% 19.24% 17.25%

Summary

United Therapeutics beats Ardelyx on 11 of the 15 factors compared between the two stocks.

About Ardelyx

(Get Free Report)

Ardelyx, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines to treat gastrointestinal and cardiorenal therapeutic areas in the United States and internationally. The company’s lead product candidate is tenapanor for the treatment of patients with irritable bowel syndrome with constipation. It also develops XPHOZAH, which is in Phase III clinical trial to reduce serum phosphorus in adults with chronic kidney disease (CKD)on dialysis, or hyperphosphatemia; RDX013, a potassium secretagogue, for the treatment of elevated serum potassium, or hyperkalemia, a problem among patients with kidney and/or heart failure; and RDX020, for adult patients with metabolic acidosis, a serious electrolyte disorder. The company has agreements with Kyowa Kirin, Fosun Pharmaceutical Industrial Development Co. Ltd., and Knight Therapeutics, Inc. for the development and commercialization of tenapanor in their respective territories. The company was formerly known as Nteryx, Inc. and changed its name to Ardelyx, Inc. in June 2008. Ardelyx, Inc. was incorporated in 2007 and is headquartered in Waltham, Massachusetts.

About United Therapeutics

(Get Free Report)

United Therapeutics Corporation, a biotechnology company, engages in the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally. The company offers Tyvaso DPI, an inhaled dry powder via pre-filled and single-use cartridges; Tyvaso, an inhaled solution via ultrasonic nebulizer; Remodulin (treprostinil) injection to treat patients with pulmonary arterial hypertension (PAH) to diminish symptoms associated with exercise; Orenitram, a tablet dosage form of treprostinil, to delay disease progression and improve exercise capacity in PAH patients; and Adcirca, an oral PDE-5 inhibitor to enhance the exercise ability in PAH patients. It also markets and sells Unituxin (dinutuximab) injection, a monoclonal antibody for treating high-risk neuroblastoma; and Remunity Pump, which contains a pump and separate controller for Remodulin. In addition, the company engages in developing RemoPro and Ralinepag for the treatment of PAH; Aurora-GT, a gene therapy product to rebuild the blood vessels in the lungs; and Nebulized Tyvaso, for the treatment of idiopathic pulmonary fibrosis, as well as xenografts, which are development-stage organ products. It has licensing and collaboration agreements with DEKA Research & Development Corp. to develop a semi-disposable system for the subcutaneous delivery of treprostinil; MannKind Corporation to develop and license treprostinil inhalation powder and the Dreamboat device; and Arena Pharmaceuticals, Inc. to develop Ralinepag. The company was incorporated in 1996 and is headquartered in Silver Spring, Maryland.

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