ADMA Biologics (NASDAQ:ADMA – Get Free Report) and Rhythm Pharmaceuticals (NASDAQ:RYTM – Get Free Report) are both mid-cap healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.
Risk & Volatility
ADMA Biologics has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Rhythm Pharmaceuticals has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500.
Profitability
This table compares ADMA Biologics and Rhythm Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ADMA Biologics | 32.98% | 40.17% | 26.97% |
| Rhythm Pharmaceuticals | -85.59% | -159.87% | -44.00% |
Valuation & Earnings
This table compares ADMA Biologics and Rhythm Pharmaceuticals”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ADMA Biologics | $510.17 million | 4.86 | $146.93 million | $0.70 | 15.82 |
| Rhythm Pharmaceuticals | $189.76 million | 32.52 | -$196.54 million | ($3.11) | -28.95 |
ADMA Biologics has higher revenue and earnings than Rhythm Pharmaceuticals. Rhythm Pharmaceuticals is trading at a lower price-to-earnings ratio than ADMA Biologics, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
75.7% of ADMA Biologics shares are held by institutional investors. 3.9% of ADMA Biologics shares are held by insiders. Comparatively, 5.9% of Rhythm Pharmaceuticals shares are held 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.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for ADMA Biologics and Rhythm Pharmaceuticals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ADMA Biologics | 0 | 3 | 3 | 0 | 2.50 |
| Rhythm Pharmaceuticals | 1 | 3 | 18 | 0 | 2.77 |
ADMA Biologics currently has a consensus target price of $18.67, indicating a potential upside of 68.55%. Rhythm Pharmaceuticals has a consensus target price of $142.50, indicating a potential upside of 58.26%. Given ADMA Biologics’ higher probable upside, equities research analysts clearly believe ADMA Biologics is more favorable than Rhythm Pharmaceuticals.
Summary
ADMA Biologics beats Rhythm Pharmaceuticals on 9 of the 14 factors compared between the two stocks.
About ADMA Biologics
ADMA Biologics, Inc., a biopharmaceutical company, engages in developing, manufacturing, and marketing specialty plasma-derived biologics for the treatment of immune deficiencies and infectious diseases in the United States and internationally. The company offers BIVIGAM, an intravenous immune globulin (IVIG) product indicated for the treatment of primary humoral immunodeficiency (PI); ASCENIV, an IVIG product for the treatment of PI; and Nabi-HB for the treatment of acute exposure to blood containing Hepatitis B surface antigen and other listed exposures to Hepatitis B. It develops a pipeline of plasma-derived therapeutics, including products related to the methods of treatment and prevention of S. pneumonia infection for an immunoglobulin. In addition, it operates source plasma collection facilities. The company sells its products through independent distributors, drug wholesalers, specialty pharmacies, and other alternate site providers. ADMA Biologics, Inc. was incorporated in 2004 and is headquartered in Ramsey, New Jersey.
About Rhythm Pharmaceuticals
Rhythm Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the rare neuroendocrine diseases. The company's lead product candidate is IMCIVREE (setmelanotide), a rare melanocortin-4 receptor for the treatment of pro-opiomelanocortin (POMC), proprotein convertase subtilisin/kexin type 1, leptin receptor (LEPR) deficiency obesity, and Bardet-Biedl and Alström syndrome. It is in Phase 3 clinical trials for treating POMC or LEPR heterozygous deficiency obesities, steroid receptor coactivator 1 deficiency obesity, SH2B1 deficiency obesity, MC4 receptor deficiency obesity, and other MC4R disorders. The company has licensing agreements with LG Chem, Ltd; Ipsen Pharma S.A.S; Camurus; RareStone Group Ltd.; and LG Chem, Ltd. The company was formerly known as Rhythm Metabolic, Inc. and changed its name to Rhythm Pharmaceuticals, Inc. in October 2015. Rhythm Pharmaceuticals, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.
Receive News & Ratings for ADMA Biologics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ADMA Biologics and related companies with MarketBeat.com's FREE daily email newsletter.
