Critical Comparison: Iterum Therapeutics (NASDAQ:ITRM) and AstraZeneca (NASDAQ:AZN)

AstraZeneca (NASDAQ:AZNGet Free Report) and Iterum Therapeutics (NASDAQ:ITRMGet Free Report) 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for AstraZeneca and Iterum Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AstraZeneca 1 1 7 2 2.91
Iterum Therapeutics 0 0 1 0 3.00

AstraZeneca presently has a consensus price target of $89.75, suggesting a potential upside of 15.63%. Iterum Therapeutics has a consensus price target of $5.00, suggesting a potential upside of 373.93%. Given Iterum Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Iterum Therapeutics is more favorable than AstraZeneca.

Volatility and Risk

AstraZeneca has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, Iterum Therapeutics has a beta of 2.26, indicating that its stock price is 126% more volatile than the S&P 500.

Insider and Institutional Ownership

20.4% of AstraZeneca shares are owned by institutional investors. Comparatively, 9.2% of Iterum Therapeutics shares are owned by institutional investors. 5.6% of Iterum Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares AstraZeneca and Iterum Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AstraZeneca 13.11% 29.34% 11.15%
Iterum Therapeutics N/A -664.00% -113.59%

Earnings and Valuation

This table compares AstraZeneca and Iterum Therapeutics”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AstraZeneca $45.81 billion 5.25 $5.96 billion $2.04 38.05
Iterum Therapeutics N/A N/A -$38.37 million ($2.65) -0.40

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

Summary

AstraZeneca beats Iterum Therapeutics on 10 of the 14 factors compared between the two stocks.

About AstraZeneca

(Get Free Report)

AstraZeneca PLC, a biopharmaceutical company, focuses on the discovery, development, manufacture, and commercialization of prescription medicines. The company's marketed products include Tagrisso, Imfinzi, Lynparza, Calquence, Enhertu, Orpathys, Truqap, Zoladex, Faslodex, Farxiga, Brilinta, Lokelma, Roxadustat, Andexxa, Crestor, Seloken, Onglyza, Bydureon, Fasenra, Breztri, Symbicort, Saphnelo, Tezspire, Pulmicort, Bevespi, and Daliresp for cardiovascular, renal, metabolism, and oncology. Its marketed products also comprise Vaxzevria, Beyfortus, Synagis, FluMist, Soliris, Ultomiris, Strensiq, Koselugo, and Kanuma for covid-19 and rare disease. The company serves primary care and specialty care physicians through distributors and local representative offices in the United Kingdom, rest of Europe, the Americas, Asia, Africa, and Australasia. It has a collaboration agreement with Neurimmune AG to develop and commercialize NI006. The company was formerly known as Zeneca Group PLC and changed its name to AstraZeneca PLC in April 1999. AstraZeneca PLC was incorporated in 1992 and is headquartered in Cambridge, the United Kingdom.

About Iterum Therapeutics

(Get Free Report)

Iterum Therapeutics plc, a clinical-stage pharmaceutical company, engages in developing and commercializing anti-infectives in Ireland, Bermuda, and the United States. It is developing sulopenem, a novel anti-infective compound with oral and intravenous formulations that is in Phase III clinical trials for the treatment of uncomplicated urinary tract infections, complicated urinary tract infections, and complicated intra-abdominal infections. The company was incorporated in 2015 and is headquartered in Dublin, Ireland.

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