Reviewing Adial Pharmaceuticals (NASDAQ:ADIL) and Ultragenyx Pharmaceutical (NASDAQ:RARE)

Adial Pharmaceuticals (NASDAQ:ADIL) and Ultragenyx Pharmaceutical (NASDAQ:RARE) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Profitability

This table compares Adial Pharmaceuticals and Ultragenyx Pharmaceutical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adial Pharmaceuticals	N/A	-170.85%	-150.00%
Ultragenyx Pharmaceutical	-121.57%	-266.02%	-41.39%

Analyst Ratings

This is a breakdown of recent recommendations for Adial Pharmaceuticals and Ultragenyx Pharmaceutical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adial Pharmaceuticals	0	0	0	0	N/A
Ultragenyx Pharmaceutical	0	1	13	0	2.93

Ultragenyx Pharmaceutical has a consensus target price of $87.43, indicating a potential upside of 53.98%. Given Ultragenyx Pharmaceutical’s higher possible upside, analysts plainly believe Ultragenyx Pharmaceutical is more favorable than Adial Pharmaceuticals.

Volatility and Risk

Adial Pharmaceuticals has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Ultragenyx Pharmaceutical has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.

Institutional and Insider Ownership

16.4% of Adial Pharmaceuticals shares are owned by institutional investors. Comparatively, 97.7% of Ultragenyx Pharmaceutical shares are owned by institutional investors. 14.5% of Adial Pharmaceuticals shares are owned by insiders. Comparatively, 5.8% of Ultragenyx Pharmaceutical shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Adial Pharmaceuticals and Ultragenyx Pharmaceutical’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adial Pharmaceuticals	N/A	N/A	-$5.12 million	N/A	N/A
Ultragenyx Pharmaceutical	$481.30 million	9.81	-$606.64 million	($8.03)	-7.07

Adial Pharmaceuticals has higher earnings, but lower revenue than Ultragenyx Pharmaceutical.

About Adial Pharmaceuticals

Adial Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development of therapeutics for the treatment or prevention of addiction and related disorders. Its lead product is AD04, a serotonin-3 antagonist, which is in Phase III clinical trial for the treatment of alcohol use disorder. The company also focuses on developing drug candidates for non-opioid pain reduction and other diseases and disorders. Adial Pharmaceuticals, Inc. was founded in 2010 and is based in Charlottesville, Virginia.

About Ultragenyx Pharmaceutical

Ultragenyx Pharmaceutical Inc., a biopharmaceutical company, focuses on the identification, acquisition, development, and commercialization of novel products for the treatment of rare and ultra-rare genetic diseases in North America, Latin America, Japan, Europe, and internationally. Its biologic products include Crysvita (burosumab), an antibody targeting fibroblast growth factor 23 for the treatment of X-linked hypophosphatemia, as well as tumor-induced osteomalacia; Mepsevii, an enzyme replacement therapy for the treatment of children and adults with Mucopolysaccharidosis VII; Dojolvi for treating long-chain fatty acid oxidation disorders; and Evkeeza (evinacumab) for the treatment of homozygous familial hypercholesterolemia. The company's products candidatures include DTX401, an adeno-associated virus 8 (AAV8) gene therapy clinical candidate for the treatment of patients with glycogen storage disease type Ia; DTX301, an AAV8 gene therapy for the treatment of patients with ornithine transcarbamylase; UX143, a human monoclonal antibody for the treatment of osteogenesis imperfecta; GTX-102, an antisense oligonucleotide for the treatment of Angelman syndrome; UX111, an AAV9 gene therapy product candidate for the treatment of patients with Sanfilippo syndrome type A, or MPS IIIA, a rare lysosomal storage disease; UX701, for the treatment of Wilson disease; and UX053 for the treatment of glycogen storage disease type III. Ultragenyx Pharmaceutical Inc. has collaboration and license agreement with Kyowa Kirin Co., Ltd.; Saint Louis University; Baylor Research Institute; REGENXBIO Inc.; Bayer Healthcare LLC; GeneTx; Mereo; University of Pennsylvania; Arcturus Therapeutics Holdings Inc.; Solid Biosciences Inc.; Regeneron; Abeona; and Daiichi Sankyo Co., Ltd. The company was incorporated in 2010 and is headquartered in Novato, California.