Analyzing Adamas Pharmaceuticals (NASDAQ:ADMS) & Morphic (NASDAQ:MORF)

Adamas Pharmaceuticals (NASDAQ:ADMS) and Morphic (NASDAQ:MORF) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.

Profitability

This table compares Adamas Pharmaceuticals and Morphic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adamas Pharmaceuticals -215.09% -205.30% -52.94%
Morphic N/A N/A N/A

Valuation and Earnings

This table compares Adamas Pharmaceuticals and Morphic’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Adamas Pharmaceuticals $34.05 million 3.62 -$131.00 million ($4.87) -0.91
Morphic N/A N/A N/A N/A N/A

Morphic has lower revenue, but higher earnings than Adamas Pharmaceuticals.

Analyst Ratings

This is a breakdown of recent recommendations for Adamas Pharmaceuticals and Morphic, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adamas Pharmaceuticals 2 3 5 0 2.30
Morphic 0 0 4 0 3.00

Adamas Pharmaceuticals presently has a consensus price target of $15.67, suggesting a potential upside of 254.05%. Morphic has a consensus price target of $32.00, suggesting a potential upside of 104.21%. Given Adamas Pharmaceuticals’ higher probable upside, equities research analysts clearly believe Adamas Pharmaceuticals is more favorable than Morphic.

Institutional & Insider Ownership

58.8% of Adamas Pharmaceuticals shares are held by institutional investors. Comparatively, 46.2% of Morphic shares are held by institutional investors. 24.9% of Adamas Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Adamas Pharmaceuticals beats Morphic on 5 of the 9 factors compared between the two stocks.

Adamas Pharmaceuticals Company Profile

Adamas Pharmaceuticals, Inc. focuses on the discovery, development, and commercialization of medicines for patients suffering from chronic neurologic disorders. The company offers GOCOVRI, an extended release capsule for the treatment of dyskinesia in patients with Parkinson's disease receiving levodopa-based therapy, with or without concomitant dopaminergic medications. It is also developing ADS-5102 that is in Phase III clinical study to treat walking impairment in patients with multiple sclerosis and other indications; and ADS-4101, which has completed two Phase I studies for treating partial onset seizures in patients with epilepsy. In addition, the company offers Namzaric (memantine hydrochloride extended release and donepezil hydrochloride) capsules for the treatment of moderate to severe dementia of an Alzheimer's type. The company was formerly known as NeuroMolecular Pharmaceuticals, Inc. and changed its name to Adamas Pharmaceuticals, Inc. in July 2007. Adamas Pharmaceuticals, Inc. was founded in 2000 and is headquartered in Emeryville, California.

Morphic Company Profile

Morphic Holding, Inc., a biopharmaceutical company, focuses on the discovery and development of oral small-molecule integrin therapeutics. The company's lead product candidates in clinical development are MORF-720, a selective oral avb6 specific integrin inhibitor for the treatment of idiopathic pulmonary fibrosis; and a4b7 specific integrin inhibitors for the treatment of inflammatory bowel disease. Its product candidates in discovery stage include an avb1 integrin for the treatment of fibrosis; two TGF-b activations for gastrointestinal cancers and fibrosis; and other aI domain integrins. The company was founded in 2014 and is headquartered in Waltham, Massachusetts.

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