Ionis Pharmaceuticals (NASDAQ:IONS) and Aytu Bioscience (NASDAQ:AYTU) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Earnings & Valuation

This table compares Ionis Pharmaceuticals and Aytu Bioscience’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ionis Pharmaceuticals $599.67 million 14.17 $273.74 million $2.96 20.41
Aytu Bioscience $7.32 million 2.32 -$27.13 million ($3.48) -0.24

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

Profitability

This table compares Ionis Pharmaceuticals and Aytu Bioscience’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ionis Pharmaceuticals 52.26% 36.31% 17.81%
Aytu Bioscience -390.43% -252.42% -78.14%

Volatility & Risk

Ionis Pharmaceuticals has a beta of 1.92, indicating that its stock price is 92% more volatile than the S&P 500. Comparatively, Aytu Bioscience has a beta of 4.61, indicating that its stock price is 361% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Ionis Pharmaceuticals and Aytu Bioscience, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ionis Pharmaceuticals 0 6 6 0 2.50
Aytu Bioscience 0 0 1 0 3.00

Ionis Pharmaceuticals presently has a consensus price target of $76.64, indicating a potential upside of 26.88%. Aytu Bioscience has a consensus price target of $4.88, indicating a potential upside of 494.51%. Given Aytu Bioscience’s stronger consensus rating and higher possible upside, analysts clearly believe Aytu Bioscience is more favorable than Ionis Pharmaceuticals.

Institutional and Insider Ownership

85.8% of Ionis Pharmaceuticals shares are held by institutional investors. Comparatively, 27.8% of Aytu Bioscience shares are held by institutional investors. 2.4% of Ionis Pharmaceuticals shares are held by insiders. Comparatively, 5.8% of Aytu Bioscience shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Ionis Pharmaceuticals beats Aytu Bioscience on 10 of the 14 factors compared between the two stocks.

About Ionis Pharmaceuticals

Ionis Pharmaceuticals, Inc. discovers and develops RNA-targeted therapeutics in the United States. The company offers SPINRAZA for spinal muscular atrophy (SMA) in pediatric and adult patients; and TEGSEDI, an injection for the treatment of polyneuropathy of hereditary transthyretin-mediated amyloidosis in adults. It is involved in developing neurology products that include IONIS-HTTRx for Huntington's diseases; and IONIS-SOD1Rx and IONIS-C9Rx for amyotrophic lateral sclerosis and IONIS-MAPTRx for Alzheimer's diseases. The company is also developing severe and rare disease products, such as WAYLIVRA, a treatment for familial chylomicronemia syndrome; WAYLIVRA, a treatment for familial partial lipodystrophy; AKCEA-TTR-LRx for transthyretin amyloidosis and IONIS-GHR-LRx for acromegaly; and IONIS-TMPRSS6-LRx for beta-thalassemia and iron toxicity, IONIS-PKKRx/IONIS-PKK-LRx for hereditary angioedema, and IONIS-ENAC-2.5Rx for cystic fibrosis. In addition, its cardio metabolic and renal drugs include AKCEA-ANGPTL3-LRx for cardio metabolic disorders, IONIS-FXIRx for clotting disorders, AKCEA-APO(a)-LRx and AKCEA-APOCIII-LRx for cardiovascular diseases, and IONIS-DGAT2Rx for nonalcoholic steatohepatitis; IONIS-AGT-LRX for the treatment of resistant hyper tension; and IONIS-FXI-LRx for clotting disorders and IONIS-AZ4-2.5-LRx for cardiovascular diseases. Further, the company develops products for oncology that include IONIS-AR-2.5Rx and danvatirsen for cancers; and IONIS-HBVRx and IONIS-HBV-LRx for hepatitis b virus infection, and IONIS-FB-LRx for compliment meditated disease, and IONIS-JBI1-2.5Rx for gastrointestinal autoimmune diseases. Ionis Pharmaceuticals, Inc. was founded in 1989 and is based in Carlsbad, California.

About Aytu Bioscience

Aytu BioScience, Inc., a specialty healthcare company, focuses on developing and commercializing novel products in the field of hypogonadism (low testosterone), insomnia, and male infertility in the United States and internationally. The company markets Natesto, a nasal gel for the treatment of hypogonadism (low testosterone) in men; and ZolpiMist, an oral spray for the treatment of insomnia. It also offers MiOXSYS, an in vitro diagnostic semen analysis test that is used in the measurement of static oxidation reduction potential in human semen. In addition, the company provides MiOXSYS analyzer, a portable lightweight desktop platform that is used in clinical or research laboratory or near a patient care area; and MiOXSYS disposable sensors. The company is based in Englewood, Colorado.

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