Journey Medical (NASDAQ:DERM – Get Free Report) and Nektar Therapeutics (NASDAQ:NKTR – Get Free Report) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Risk and Volatility
Journey Medical has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Nektar Therapeutics has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.
Profitability
This table compares Journey Medical and Nektar Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Journey Medical | -14.82% | -35.57% | -10.88% |
| Nektar Therapeutics | -284.18% | -85.40% | -39.99% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Journey Medical | 1 | 1 | 2 | 0 | 2.25 |
| Nektar Therapeutics | 1 | 1 | 9 | 0 | 2.73 |
Journey Medical currently has a consensus price target of $13.00, suggesting a potential upside of 96.37%. Nektar Therapeutics has a consensus price target of $149.63, suggesting a potential upside of 135.07%. Given Nektar Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Nektar Therapeutics is more favorable than Journey Medical.
Institutional & Insider Ownership
7.3% of Journey Medical shares are held by institutional investors. Comparatively, 75.9% of Nektar Therapeutics shares are held by institutional investors. 14.5% of Journey Medical shares are held by insiders. Comparatively, 2.5% of Nektar Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Journey Medical and Nektar Therapeutics”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Journey Medical | $61.86 million | 2.95 | -$11.43 million | ($0.37) | -17.89 |
| Nektar Therapeutics | $55.63 million | 38.65 | -$164.08 million | ($8.42) | -7.56 |
Journey Medical has higher revenue and earnings than Nektar Therapeutics. Journey Medical is trading at a lower price-to-earnings ratio than Nektar Therapeutics, indicating that it is currently the more affordable of the two stocks.
About Journey Medical
Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant nodular acne; and Amzeeq, a topical formulation of minocycline for the treatment of inflammatory lesions of non-nodular moderate to severe acne vulgaris. It also offers Zilxi, a topical minocycline treatment for inflammatory lesions of rosacea; Exelderm cream and solution an antifungal intended for topical use; Targadox, an oral doxycycline drug for adjunctive therapy for severe acne; and Luxamend, a water-based emulsion formulated to provide a moist healing environment for superficial wounds; minor cuts or scrapes; dermal ulcers; donor sites; first- and second-degree burns, including sunburns; and radiation dermatitis. In addition, the company sells sulconazole nitrate cream and solution indicated for the treatment of tinea cruris, tinea corporis, and tinea versicolor; and doxycycline hyclate tablets, as an adjunctive therapy for severe acne. The company was formerly known as Coronado Dermatology, Inc. and changed its name to Journey Medical Corporation. Journey Medical Corporation was incorporated in 2014 and is headquartered in Scottsdale, Arizona. Journey Medical Corporation is a subsidiary of Fortress Biotech, Inc.
About Nektar Therapeutics
Nektar Therapeutics, a biopharmaceutical company, focuses on discovering and developing medicines in the field of immunotherapy in the United States and internationally. The company is developing rezpegaldesleukin, a cytokine Treg stimulant that is in phase 2 clinical trial for the treatment of systemic lupus erythematosus and ulcerative colitis, as well as phase 2b clinical trial to treat atopic dermatitis and psoriasis; and NKTR-255, an IL-15 receptor agonist, which is in phase 1 clinical trial to boost the immune system's natural ability to fight cancer. It has collaboration agreements with Takeda Pharmaceutical Company Ltd.; AstraZeneca AB; UCB Pharma S.A.; F. Hoffmann-La Roche Ltd; Bausch Health Companies Inc.; Pfizer Inc.; Amgen Inc.; UCB Pharma (Biogen); Bristol-Myers Squibb Company; Merck KGaA; and SFJ Pharmaceuticals, Inc. The company was incorporated in 1990 and is headquartered in San Francisco, California.
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