Avrobio (NASDAQ:AVRO) and Idera Pharmaceuticals (NASDAQ:IDRA) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.
Volatility and Risk
Avrobio has a beta of 2.7, suggesting that its stock price is 170% more volatile than the S&P 500. Comparatively, Idera Pharmaceuticals has a beta of 2.45, suggesting that its stock price is 145% more volatile than the S&P 500.
This table compares Avrobio and Idera Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Idera Pharmaceuticals||$660,000.00||101.47||-$59.88 million||($2.28)||-1.05|
Avrobio has higher earnings, but lower revenue than Idera Pharmaceuticals. Avrobio is trading at a lower price-to-earnings ratio than Idera Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
71.4% of Avrobio shares are owned by institutional investors. Comparatively, 42.9% of Idera Pharmaceuticals shares are owned by institutional investors. 4.7% of Avrobio shares are owned by insiders. Comparatively, 3.5% of Idera Pharmaceuticals shares are owned 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.
This is a breakdown of current ratings and recommmendations for Avrobio and Idera Pharmaceuticals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Avrobio presently has a consensus price target of $29.88, suggesting a potential upside of 63.12%. Idera Pharmaceuticals has a consensus price target of $12.50, suggesting a potential upside of 423.01%. Given Idera Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Idera Pharmaceuticals is more favorable than Avrobio.
This table compares Avrobio and Idera Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Avrobio beats Idera Pharmaceuticals on 8 of the 13 factors compared between the two stocks.
Avrobio Company Profile
AVROBIO, Inc., a clinical-stage gene therapy company, focuses on developing ex vivo lentiviral-based gene therapies to treat rare diseases following a single dose in the United States. Its gene therapies employ hematopoietic stem cells that are collected from patients and modified with a lentiviral vector to insert functional copies of the gene, which is defective in the target disease. The company's lead product candidate is AVR-RD-01, which is in ongoing Phase II clinical trial and investigator-sponsored Phase I clinical trial for the treatment of Fabry disease. It is also developing AVR-RD-02 that has completed pre-clinical trials for the treatment of type 1 Gaucher disease; AVR-RD-03, which is in preclinical development to treat Pompe disease; and AVR-RD-04 that has completed pre-clinical studies for treating cystinosis. The company was founded in 2015 and is headquartered in Cambridge, Massachusetts.
Idera Pharmaceuticals Company Profile
Idera Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of drugs for oncology in the United States. It offers Tilsotolimod, a synthetic phosphorothioate oligonucleotide that acts as a direct agonist of TLR9 to stimulate the immune systems and for treating solid tumors, metastatic melanoma, squamous cell carcinoma, and colorectal cancer. The company was founded in 1989 and is based in Exton, Pennsylvania.
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