Tetraphase Pharmaceuticals (NASDAQ: TTPH) and Amgen (NASDAQ:AMGN) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.

Institutional and Insider Ownership

41.7% of Tetraphase Pharmaceuticals shares are held by institutional investors. Comparatively, 78.1% of Amgen shares are held by institutional investors. 5.5% of Tetraphase Pharmaceuticals shares are held by insiders. Comparatively, 0.2% of Amgen shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Tetraphase Pharmaceuticals and Amgen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tetraphase Pharmaceuticals -2,092.20% -79.79% -71.63%
Amgen 35.46% 29.85% 11.72%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Tetraphase Pharmaceuticals and Amgen, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tetraphase Pharmaceuticals 0 2 4 0 2.67
Amgen 0 10 9 1 2.55

Tetraphase Pharmaceuticals presently has a consensus price target of $14.00, suggesting a potential upside of 116.38%. Amgen has a consensus price target of $191.06, suggesting a potential upside of 4.42%. Given Tetraphase Pharmaceuticals’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Tetraphase Pharmaceuticals is more favorable than Amgen.

Risk & Volatility

Tetraphase Pharmaceuticals has a beta of 2.57, meaning that its stock price is 157% more volatile than the S&P 500. Comparatively, Amgen has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Dividends

Amgen pays an annual dividend of $4.60 per share and has a dividend yield of 2.5%. Tetraphase Pharmaceuticals does not pay a dividend. Amgen pays out 41.9% of its earnings in the form of a dividend. Tetraphase Pharmaceuticals has raised its dividend for 6 consecutive years.

Valuation and Earnings

This table compares Tetraphase Pharmaceuticals and Amgen’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tetraphase Pharmaceuticals $5.01 million 65.93 -$104.99 million ($2.81) -2.30
Amgen $23.05 billion 5.79 $12.36 billion $10.97 16.68

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

Summary

Amgen beats Tetraphase Pharmaceuticals on 10 of the 17 factors compared between the two stocks.

Tetraphase Pharmaceuticals Company Profile

Tetraphase Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company uses its chemistry technology to create antibiotics for multidrug-resistant infections. The Company is developing its lead product candidate, eravacycline, a fully synthetic tetracycline derivative, as a spectrum intravenous (IV) and oral antibiotic for use as a first-line empiric monotherapy for the treatment of multidrug-resistant infections, including multidrug-resistant gram-negative infections. The Company also develops TP-6076 for multidrug-resistant gram-negative infections. Eravacycline is a fluorocycline antibiotic. The Company is conducting a global Phase III clinical program for eravacycline called Investigating Gram-Negative Infections Treated with Eravacycline (IGNITE). TP-271 is a fully synthetic fluorocycline being developed for respiratory disease caused by bacterial biothreat pathogens in healthy volunteers.

Amgen Company Profile

Amgen Inc. is a biotechnology company. The Company discovers, develops, manufactures and delivers various human therapeutics. It operates in human therapeutics segment. Its marketed products portfolio includes Neulasta (pegfilgrastim); erythropoiesis-stimulating agents (ESAs), such as Aranesp (darbepoetin alfa) and EPOGEN (epoetin alfa); Sensipar/Mimpara (cinacalcet); XGEVA (denosumab); Prolia (denosumab); NEUPOGEN (filgrastim), and other marketed products, such as KYPROLIS (carfilzomib), Vectibix (panitumumab), Nplate (romiplostim), Repatha (evolocumab), BLINCYTO (blinatumomab), IMLYGIC (talimogene laherparepvec) and Corlanor (ivabradine). It focuses on human therapeutics for the treatment of serious illness in the areas of oncology/hematology, cardiovascular disease and neuroscience. Its product candidates in Phase III include Erenumab for episodic migraine, Aranesp for myelodysplastic syndromes, BLINCYTO for acute lymphoblastic leukemia and IMLYGIC for metastatic melanoma.

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