Amicus Therapeutics (NASDAQ:FOLD) and XOMA (NASDAQ:XOMA) Critical Analysis

XOMA (NASDAQ:XOMAGet Free Report) and Amicus Therapeutics (NASDAQ:FOLDGet Free Report) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Institutional and Insider Ownership

95.9% of XOMA shares are held by institutional investors. 7.2% of XOMA shares are held by insiders. Comparatively, 2.2% of Amicus Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for XOMA and Amicus Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
XOMA 0 0 3 0 3.00
Amicus Therapeutics 0 1 8 0 2.89

XOMA presently has a consensus target price of $78.50, indicating a potential upside of 159.93%. Amicus Therapeutics has a consensus target price of $17.63, indicating a potential upside of 82.45%. Given XOMA’s stronger consensus rating and higher probable upside, equities analysts plainly believe XOMA is more favorable than Amicus Therapeutics.

Valuation and Earnings

This table compares XOMA and Amicus Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
XOMA $4.76 million 74.74 -$40.83 million ($3.48) -8.68
Amicus Therapeutics $399.36 million 7.23 -$151.58 million ($0.34) -28.41

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

Profitability

This table compares XOMA and Amicus Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
XOMA -151.34% -24.95% -9.64%
Amicus Therapeutics -21.21% -15.97% -3.17%

Volatility & Risk

XOMA has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Amicus Therapeutics has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Summary

XOMA beats Amicus Therapeutics on 8 of the 14 factors compared between the two stocks.

About XOMA

(Get Free Report)

XOMA Corporation operates as a biotech royalty aggregator in the United States and the Asia Pacific. It has a portfolio of economic rights to future potential milestone and royalty payments associated with partnered commercial and pre-commercial therapeutic candidates. The company also focuses on early to mid-stage clinical assets primarily in Phase 1 and 2 with commercial sales potential that are licensed to partners; and acquires milestone and royalty revenue streams on late-stage clinical or commercial assets. It has a portfolio with various assets. XOMA Corporation was incorporated in 1981 and is headquartered in Emeryville, California.

About Amicus Therapeutics

(Get Free Report)

Amicus Therapeutics, Inc., a biotechnology company, focuses on discovering, developing, and delivering medicines for rare diseases. Its commercial product and product candidates include Galafold, an oral precision medicine for the treatment of adults with a confirmed diagnosis of Fabry disease and an amenable galactosidase alpha gene variant; and Pombiliti + Opfolda, for the treatment of late onset. It has collaboration and license agreements with the University of Pennsylvania to research and develop parvovirus gene therapy products; and GlaxoSmithKline. Amicus Therapeutics, Inc. was incorporated in 2002 and is headquartered in Princeton, New Jersey.

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