Comparing Royalty Pharma (NASDAQ:RPRX) & Argos Therapeutics (OTCMKTS:ARGSQ)

Argos Therapeutics (OTCMKTS:ARGSQ) and Royalty Pharma (NASDAQ:RPRX) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Institutional and Insider Ownership

54.3% of Royalty Pharma shares are owned by institutional investors. 28.2% of Argos Therapeutics shares are owned by company insiders. Comparatively, 18.9% of Royalty Pharma shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Argos Therapeutics and Royalty Pharma”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Argos Therapeutics	$1.90 million	0.30	-$40.57 million	N/A	N/A
Royalty Pharma	$2.26 billion	8.57	$858.98 million	$1.45	23.20

Royalty Pharma has higher revenue and earnings than Argos Therapeutics.

Risk & Volatility

Argos Therapeutics has a beta of 2.47, suggesting that its stock price is 147% more volatile than the S&P 500. Comparatively, Royalty Pharma has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Argos Therapeutics and Royalty Pharma, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Argos Therapeutics	0	0	0	0	0.00
Royalty Pharma	0	1	4	1	3.00

Royalty Pharma has a consensus target price of $41.60, suggesting a potential upside of 23.66%. Given Royalty Pharma’s stronger consensus rating and higher possible upside, analysts clearly believe Royalty Pharma is more favorable than Argos Therapeutics.

Profitability

This table compares Argos Therapeutics and Royalty Pharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Argos Therapeutics	N/A	N/A	N/A
Royalty Pharma	37.94%	24.40%	14.01%

Summary

Royalty Pharma beats Argos Therapeutics on 11 of the 13 factors compared between the two stocks.

About Argos Therapeutics

Argos Therapeutics, Inc., an immuno-oncology company, focuses on the development and commercialization of individualized immunotherapies for the treatment of cancer and infectious diseases in North America. The company develops immunotherapies based on its proprietary technology platform, Arcelis. Its product candidates include rocapuldencel-T, which is in Phase III clinical trial for the treatment of metastatic renal cell carcinoma. The company also develops AGS-004, which is in Phase II clinical trials for the treatment of human immunodeficiency virus. The company was formerly known as Merix Bioscience, Inc. and changed its name to Argos Therapeutics, Inc. in October 2004. Argos Therapeutics, Inc. was founded in 1997 and is based in Durham, North Carolina. On November 30, 2018, Argos Therapeutics, Inc. filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the District of Delaware.

About Royalty Pharma

Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovations in the biopharmaceutical industry in the United States. It is also involved in the identification, evaluation, and acquisition of royalties on various biopharmaceutical therapies. In addition, the company collaborates with innovators from academic institutions, research hospitals and not-for-profits, small and mid-cap biotechnology companies, and pharmaceutical companies. Its portfolio consists of royalties on approximately 35 commercial products and 14 development-stage product candidates that address various therapeutic areas, such as rare disease, cancer, neuroscience, immunology, respiratory, infectious disease, hematology, and diabetes. The company was founded in 1996 and is based in New York, New York.