Ironwood Pharmaceuticals (NASDAQ: IRWD) and Senomyx (NASDAQ:SNMX) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.
Insider and Institutional Ownership
29.6% of Senomyx shares are held by institutional investors. 7.6% of Ironwood Pharmaceuticals shares are held by company insiders. Comparatively, 12.4% of Senomyx shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Ironwood Pharmaceuticals and Senomyx’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for Ironwood Pharmaceuticals and Senomyx, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ironwood Pharmaceuticals presently has a consensus price target of $17.29, suggesting a potential upside of 22.38%. Senomyx has a consensus price target of $2.00, suggesting a potential upside of 119.78%. Given Senomyx’s higher possible upside, analysts clearly believe Senomyx is more favorable than Ironwood Pharmaceuticals.
Earnings & Valuation
This table compares Ironwood Pharmaceuticals and Senomyx’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ironwood Pharmaceuticals||$298.28 million||7.15||-$116.93 million||($0.93)||-15.19|
|Senomyx||$29.32 million||1.48||-$1.26 million||($0.03)||-30.33|
Senomyx has lower revenue, but higher earnings than Ironwood Pharmaceuticals. Senomyx is trading at a lower price-to-earnings ratio than Ironwood Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Ironwood Pharmaceuticals has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Senomyx has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.
Senomyx beats Ironwood Pharmaceuticals on 9 of the 13 factors compared between the two stocks.
About Ironwood Pharmaceuticals
Ironwood Pharmaceuticals, Inc., a commercial biotechnology company, engages in the research, development, and commercialization of human therapeutic products. The company markets linaclotide, a guanylate cyclase type-C agonist for the treatment of adults suffering from irritable bowel syndrome with constipation (IBS-C) or chronic idiopathic constipation (CIC) under the LINZESS name in the United States and CONSTELLA name in the European Union; and lesinurad for the treatment of hyperuricemia associated with uncontrolled gout in adults under the ZURAMPIC and DUZALLO names. Ironwood Pharmaceuticals, Inc. has collaboration agreements with Allergan plc and AstraZeneca AB to develop and commercialize linaclotide for the treatment of IBS-C, CIC, and other gastrointestinal (GI) conditions in North America, China, Hong Kong, and Macau; and a license agreement with Astellas Pharma Inc. to develop and commercialize linaclotide for the treatment of IBS-C, CIC, and other GI conditions in Japan. The company was formerly known as Microbia, Inc. and changed its name to Ironwood Pharmaceuticals, Inc. in April 2008. Ironwood Pharmaceuticals, Inc. was founded in 1998 and is headquartered in Cambridge, Massachusetts.
Senomyx, Inc. is focused on using taste receptor technologies to discover, develop and commercialize flavor ingredients for the packaged food, beverage and ingredient supply industries. The Company operates through development and commercialization of flavor ingredients segment. It is engaged in the discovery, development and/or commercialization of flavor ingredients through over five programs. The Sweet Taste Program is focused on developing flavor ingredients or discovering natural sweeteners. The Savory Flavor Program is focused at flavor ingredients to be used in product categories, such as ready meals, sauces, soups and snack foods. The Bitter Blocker Program is focused on flavor ingredients used in products that contain bitter tastants. The Cooling Taste Program is focused at flavor ingredients used in products that consist of cooling agents. The salt taste modifier program is focused on reduction of the level of salt contained in packaged food and beverage products.
Receive News & Ratings for Ironwood Pharmaceuticals Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ironwood Pharmaceuticals and related companies with MarketBeat.com's FREE daily email newsletter.