XOMA (NASDAQ:XOMA – Get Free Report) and Amicus Therapeutics (NASDAQ:FOLD – Get Free Report) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.
Profitability
This table compares XOMA and Amicus Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| XOMA | -151.34% | -24.95% | -9.64% |
| Amicus Therapeutics | -21.21% | -15.97% | -3.17% |
Risk & Volatility
XOMA has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Amicus Therapeutics has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| XOMA | 0 | 0 | 3 | 0 | 3.00 |
| Amicus Therapeutics | 0 | 1 | 8 | 0 | 2.89 |
XOMA presently has a consensus target price of $78.50, suggesting a potential upside of 131.70%. Amicus Therapeutics has a consensus target price of $17.63, suggesting a potential upside of 78.57%. Given XOMA’s stronger consensus rating and higher probable upside, equities research analysts plainly believe XOMA is more favorable than Amicus Therapeutics.
Earnings and Valuation
This table compares XOMA and Amicus Therapeutics”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| XOMA | $4.76 million | 83.85 | -$40.83 million | ($3.48) | -9.74 |
| Amicus Therapeutics | $493.67 million | 5.97 | -$151.58 million | ($0.34) | -29.03 |
XOMA has higher earnings, but lower revenue than Amicus Therapeutics. Amicus Therapeutics is trading at a lower price-to-earnings ratio than XOMA, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
95.9% of XOMA shares are owned by institutional investors. 7.2% of XOMA shares are owned by insiders. Comparatively, 2.2% of Amicus Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
XOMA beats Amicus Therapeutics on 8 of the 14 factors compared between the two stocks.
About XOMA
XOMA Corporation operates as a biotech royalty aggregator in the United States and the Asia Pacific. It has a portfolio of economic rights to future potential milestone and royalty payments associated with partnered commercial and pre-commercial therapeutic candidates. The company also focuses on early to mid-stage clinical assets primarily in Phase 1 and 2 with commercial sales potential that are licensed to partners; and acquires milestone and royalty revenue streams on late-stage clinical or commercial assets. It has a portfolio with various assets. XOMA Corporation was incorporated in 1981 and is headquartered in Emeryville, California.
About Amicus Therapeutics
Amicus Therapeutics, Inc., a biotechnology company, focuses on discovering, developing, and delivering medicines for rare diseases. Its commercial product and product candidates include Galafold, an oral precision medicine for the treatment of adults with a confirmed diagnosis of Fabry disease and an amenable galactosidase alpha gene variant; and Pombiliti + Opfolda, for the treatment of late onset. It has collaboration and license agreements with the University of Pennsylvania to research and develop parvovirus gene therapy products; and GlaxoSmithKline. Amicus Therapeutics, Inc. was incorporated in 2002 and is headquartered in Princeton, New Jersey.
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