Reviewing Shire (NASDAQ:SHPG) and Abeona Therapeutics (NASDAQ:ABEO)

Abeona Therapeutics (NASDAQ:ABEO) and Shire (NASDAQ:SHPG) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for Abeona Therapeutics and Shire, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Abeona Therapeutics 0 3 3 0 2.50
Shire 0 5 3 0 2.38

Abeona Therapeutics currently has a consensus price target of $19.67, indicating a potential upside of 806.30%. Shire has a consensus price target of $204.33, indicating a potential upside of ∞. Given Shire’s higher possible upside, analysts plainly believe Shire is more favorable than Abeona Therapeutics.

Insider & Institutional Ownership

63.3% of Abeona Therapeutics shares are owned by institutional investors. Comparatively, 20.2% of Shire shares are owned by institutional investors. 33.6% of Abeona Therapeutics shares are owned by company insiders. Comparatively, 2.0% of Shire shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Abeona Therapeutics has a beta of 1.89, suggesting that its stock price is 89% more volatile than the S&P 500. Comparatively, Shire has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Valuation and Earnings

This table compares Abeona Therapeutics and Shire’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Abeona Therapeutics $3.00 million 35.67 -$56.67 million ($1.19) -1.82
Shire $15.16 billion 0.00 $4.27 billion $15.15 N/A

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

Dividends

Shire pays an annual dividend of $0.34 per share. Abeona Therapeutics does not pay a dividend. Shire pays out 2.2% of its earnings in the form of a dividend. Shire has raised its dividend for 6 consecutive years.

Profitability

This table compares Abeona Therapeutics and Shire’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Abeona Therapeutics -960.91% -56.99% -45.72%
Shire 30.63% 12.70% 7.06%

Summary

Shire beats Abeona Therapeutics on 9 of the 14 factors compared between the two stocks.

Abeona Therapeutics Company Profile

Abeona Therapeutics Inc., a clinical-stage biopharmaceutical company, focuses on developing and delivering gene therapy products for severe and life-threatening rare diseases. The company's lead programs are EB-101 (gene-corrected skin grafts) for recessive dystrophic epidermolysis bullosa (RDEB); ABO-102, which are AAV based gene therapies for Sanfilippo syndrome type A; and ABO-101, an adeno-associated virus (AAV) based gene therapies for Sanfilippo syndrome type B. It is also developing ABO-201 gene therapy for juvenile Batten disease; ABO-202 gene therapy for treatment of infantile Batten disease; EB-201 for for epidermolysis bullosa (EB); ABO-301 for Fanconi anemia disorder; and ABO-302 using a novel CRISPR/Cas9-based gene editing approach to gene therapy program for rare blood diseases. Further, it is involved in marketing MuGard, a mucoadhesive oral wound rinse for the management of mucositis, stomatitis, aphthous ulcers, and traumatic ulcers. Abeona Therapeutics Inc. has collaborations with EB Research Partnership and Epidermolysis Bullosa Medical Research Foundation that focus on gene therapy treatments for EB; and Brammer Bio for commercial translation of ABO-102. The company was formerly known as PlasmaTech Biopharmaceuticals, Inc. and changed its name to Abeona Therapeutics Inc. in June 2015. Abeona Therapeutics Inc. was incorporated in 1989 and is based in Dallas, Texas.

Shire Company Profile

Shire plc, a biotechnology company, researches, develops, licenses, manufactures, markets, distributes, and sells medicines for rare diseases and other specialized conditions worldwide. The company offers products in therapeutic areas, including hematology, genetic diseases, neuroscience, immunology, internal medicine, ophthalmology, and oncology. Its marketed products include ADVATE, ADYNOVATE/ADYNOVI, and OBIZUR for the treatment of hemophilia A; RIXUBIS to treat hemophilia B; VONVENDI for the treatment of von willebrand disease; FEIBA to treat hemophilia A and B patients with inhibitors; ELAPRASE to treat hunter syndrome; REPLAGAL for fabry disease; and VPRIV to treat type 1 Gaucher disease. The company's marketed products also comprise VYVANSE/VENVANSE/ELVANSE/TYVENSE/VUXEN/ADUVANZ for the treatment of attention deficit/hyperactivity disorder (ADHD) and binge eating disorder; ADDERALL XR and MYDAYIS to treat ADHD; GAMMAGARD LIQUID/KIOVIG, GAMMAGARD S/D, HYQVIA, and CUVITRU for the treatment of primary immunodeficiency; and FLEXBUMIN to treat hypovolemia and hypoalbuminemia. In addition, its marketed products consists of CINRYZE and FIRAZYR for the treatment of hereditary angioedema; FOSRENOL to treat hyperphosphatemia; LIALDA/MEZAVANT and PENTASA for ulcerative colitis; GATTEX/REVESTIVE for the treatment of short bowel syndrome; NATPARA for the control of hypocalcemia in patients with hypoparathyroidism; ONCASPAR to treat acute lymphoblastic leukemia; ONYVIDE for metastatic adenocarcinoma of the pancreas; and XIIDRA for the treatment of dry eye disease. The company markets its products through wholesalers, distributors, and pharmacies. It has collaborative and other licensing arrangements with Rani Therapeutics LLC; Parion Sciences Inc.; Pfizer Inc.; Precision BioSciences Inc.; Symphogen; and Ipsen Bioscience Inc., as well as a preclinical research collaboration agreement with NanoMedSyn. The company was founded in 1986 and is headquartered in Dublin, Ireland.

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