Absci (NASDAQ:ABSI – Get Free Report) and Arrowhead Pharmaceuticals (NASDAQ:ARWR – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Volatility and Risk
Absci has a beta of 2.22, indicating that its stock price is 122% more volatile than the S&P 500. Comparatively, Arrowhead Pharmaceuticals has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500.
Institutional & Insider Ownership
52.0% of Absci shares are owned by institutional investors. Comparatively, 62.6% of Arrowhead Pharmaceuticals shares are owned by institutional investors. 10.5% of Absci shares are owned by insiders. Comparatively, 3.6% of Arrowhead Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and price targets for Absci and Arrowhead Pharmaceuticals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Absci | 1 | 0 | 11 | 0 | 2.83 |
| Arrowhead Pharmaceuticals | 1 | 3 | 10 | 1 | 2.73 |
Absci presently has a consensus price target of $14.50, indicating a potential upside of 34.26%. Arrowhead Pharmaceuticals has a consensus price target of $99.07, indicating a potential upside of 101.20%. Given Arrowhead Pharmaceuticals’ higher possible upside, analysts clearly believe Arrowhead Pharmaceuticals is more favorable than Absci.
Profitability
This table compares Absci and Arrowhead Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Absci | -7,756.38% | -61.71% | -54.52% |
| Arrowhead Pharmaceuticals | -47.79% | -60.06% | -17.37% |
Earnings and Valuation
This table compares Absci and Arrowhead Pharmaceuticals”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Absci | $2.80 million | 661.92 | -$115.18 million | ($0.80) | -13.50 |
| Arrowhead Pharmaceuticals | $829.45 million | 8.36 | -$1.63 million | ($2.25) | -21.88 |
Arrowhead Pharmaceuticals has higher revenue and earnings than Absci. Arrowhead Pharmaceuticals is trading at a lower price-to-earnings ratio than Absci, indicating that it is currently the more affordable of the two stocks.
Summary
Arrowhead Pharmaceuticals beats Absci on 8 of the 15 factors compared between the two stocks.
About Absci
Absci Corporation operates as a data-first generative artificial intelligence (AI) drug creation company in the United States. The company combines AI with scalable wet lab technologies to create biologics for patients. Its integrated drug creation platform is designed to improve upon traditional biologic drug discovery by using AI to simultaneously optimize multiple drug characteristics that may be important to development and therapeutic benefit. The company was founded in 2011 and is headquartered in Vancouver, Washington.
About Arrowhead Pharmaceuticals
Arrowhead Pharmaceuticals, Inc. develops medicines for the treatment of intractable diseases in the United States. The company's products in pipeline includes Plozasiran, which is in Phase 2b and one Phase 3 clinical trial to treat hypertriglyceridemia, mixed dyslipidemia, and chylomicronemia syndrome; Zodasiran that is in Phase 2b clinical trial for the treatment of dyslipidemia and hypertriglyceridemia; ARO-PNPLA3, which is in Phase 1 clinical trial to treat patients with non-alcoholic steatohepatitis; ARO-RAGE that is in Phase 1/2a clinical trial to treat inflammatory pulmonary conditions; and ARO-MUC5AC, which is in Phase 1/2a clinical trial to treat muco-obstructive pulmonary diseases. It also develops ARO-MMP7 that is in Phase 1/2a clinical trial for treatment of idiopathic pulmonary fibrosis; ARO-DUX4 for the treatment of facioscapulohumeral muscular dystrophy; ARO-SOD1 for the potential treatment of amyotrophic lateral sclerosis; and ARO-C3, which is in Phase 1/2a clinical trial for the treatment of patients with various complement mediated or complement associated renal diseases. In addition, the company is involved in the development of JNJ-3989, which is in Phase 2 clinical trial to treat chronic hepatitis B virus infection; Olpasiran that is in Phase 3 clinical trial to reduce the production of apolipoprotein A; GSK-4532990 that is in phase 2 clinical trial to treat liver diseases; HZN-457, which is in phase 1 clinical trial to treat uncontrolled gout; and Fazirsiran that is in Phase 3 clinical trial for the treatment for liver disease associated with alpha-1 antitrypsin deficiency. Arrowhead Pharmaceuticals, Inc. has license and research collaboration agreements with Janssen Pharmaceuticals, Inc.; Takeda Pharmaceutical Company Limited; Horizon Therapeutics Ireland DAC; Amgen Inc.; and Glaxosmithkline Intellectual Property (No. 3) Limited. The company was founded in 2003 and is headquartered in Pasadena, California.
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