Shire (NASDAQ:SHPG) and Nektar Therapeutics (NASDAQ:NKTR) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.
This table compares Shire and Nektar Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
20.2% of Shire shares are held by institutional investors. Comparatively, 90.8% of Nektar Therapeutics shares are held by institutional investors. 2.0% of Shire shares are held by insiders. Comparatively, 4.3% of Nektar Therapeutics shares are held 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.
Valuation & Earnings
This table compares Shire and Nektar Therapeutics’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Shire||$15.16 billion||3.61||$4.27 billion||$15.15||11.83|
|Nektar Therapeutics||$30.71 million||238.63||-$96.69 million||($0.55)||-76.98|
Shire has higher revenue and earnings than Nektar Therapeutics. Nektar Therapeutics is trading at a lower price-to-earnings ratio than Shire, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for Shire and Nektar Therapeutics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Shire currently has a consensus price target of $198.13, indicating a potential upside of 10.56%. Nektar Therapeutics has a consensus price target of $84.22, indicating a potential upside of 98.92%. Given Nektar Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Nektar Therapeutics is more favorable than Shire.
Shire pays an annual dividend of $0.34 per share and has a dividend yield of 0.2%. Nektar Therapeutics does not pay a dividend. Shire pays out 2.2% of its earnings in the form of a dividend. Shire has increased its dividend for 6 consecutive years.
Risk & Volatility
Shire has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Nektar Therapeutics has a beta of 2.79, indicating that its share price is 179% more volatile than the S&P 500.
Nektar Therapeutics beats Shire on 11 of the 17 factors compared between the two stocks.
Shire Company Profile
Shire plc, a biotechnology company, researches, develops, licenses, manufactures, markets, distributes, and sells medicines for rare diseases and other specialized conditions worldwide. The company offers products in therapeutic areas, including hematology, genetic diseases, neuroscience, immunology, internal medicine, ophthalmology, and oncology. Its marketed products include ADVATE, ADYNOVATE/ADYNOVI, and OBIZUR for the treatment of hemophilia A; RIXUBIS to treat hemophilia B; VONVENDI for the treatment of von willebrand disease; FEIBA to treat hemophilia A and B patients with inhibitors; ELAPRASE to treat hunter syndrome; REPLAGAL for fabry disease; and VPRIV to treat type 1 Gaucher disease. The company's marketed products also comprise VYVANSE/VENVANSE/ELVANSE/TYVENSE/VUXEN/ADUVANZ for the treatment of attention deficit/hyperactivity disorder (ADHD) and binge eating disorder; ADDERALL XR and MYDAYIS to treat ADHD; GAMMAGARD LIQUID/KIOVIG, GAMMAGARD S/D, HYQVIA, and CUVITRU for the treatment of primary immunodeficiency; and FLEXBUMIN to treat hypovolemia and hypoalbuminemia. In addition, its marketed products consists of CINRYZE and FIRAZYR for the treatment of hereditary angioedema; FOSRENOL to treat hyperphosphatemia; LIALDA/MEZAVANT and PENTASA for ulcerative colitis; GATTEX/REVESTIVE for the treatment of short bowel syndrome; NATPARA for the control of hypocalcemia in patients with hypoparathyroidism; ONCASPAR to treat acute lymphoblastic leukemia; ONYVIDE for metastatic adenocarcinoma of the pancreas; and XIIDRA for the treatment of dry eye disease. The company markets its products through wholesalers, distributors, and pharmacies. It has collaborative and other licensing arrangements with Rani Therapeutics LLC; Parion Sciences Inc.; Pfizer Inc.; Precision BioSciences Inc.; Symphogen; and Ipsen Bioscience Inc., as well as a preclinical research collaboration agreement with NanoMedSyn. The company was founded in 1986 and is headquartered in Dublin, Ireland.
Nektar Therapeutics Company Profile
Nektar Therapeutics, a research-based biopharmaceutical company, discovers and develops drug candidates for cancer, auto-immune disease, and chronic pain in the United States. The company offers ONZEALD, a topoisomerase I inhibitor that is in Phase III clinical trial for advanced metastatic breast cancer in patients with brain metastases; NKTR-181, an orally-available mu-opioid analgesic molecule, which is in Phase III clinical trial for moderate to severe chronic pain; NKTR-214, a cytokine immunostimulatory therapy that is in Phase I/II to treat cancer; NKTR-358, which is in Phase I to treat autoimmune diseases; and NKTR-262 for solid tumors, as well as NKTR-255 that is under research/preclinical stage for immuno-oncology. It is also developing MOVANTIK for opioid-induced constipation in adult patients with chronic non-cancer pain, and who have an inadequate response to laxatives; ADYNOVATE for hemophilia A; Somavert to treat acromegaly; and Neulasta for treating neutropenia. In addition, the company develops PEG-INTRON for the treatment of hepatitis-C; Macugen for age-related macular degeneration; CIMZIA to treat rheumatoid arthritis, Crohn's disease, and psoriasis/ankylosing spondylitis; and MIRCERA for anemia related to chronic kidney disease in patients on and not on dialysis. Further, it is developing SEMPRANA to treat migraine; dapirolizumab pegol for systemic lupus erythematosus; PEGPH20 for ancreatic, non-small cell lung cancer, and other tumor types; and longer-acting blood clotting proteins for hemophilia. The company has collaboration agreement with AstraZeneca AB, Shire plc, Pfizer Inc., Amgen Inc., Merck & Co., Inc., Valeant Pharmaceuticals International, Inc., UCB Pharma S.A., F. Hoffmann-La Roche Ltd, Allergan, Inc., Halozyme Therapeutics, Inc., Baxalta Incorporated, Bristol-Myers Squibb Company, and Takeda Pharmaceutical Company Limited. The company was founded in 1990 and is headquartered in San Francisco, California.
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