Sarepta Therapeutics (NASDAQ:SRPT) & Galmed Pharmaceuticals (NASDAQ:GLMD) Critical Review

Sarepta Therapeutics (NASDAQ:SRPT) and Galmed Pharmaceuticals (NASDAQ:GLMD) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Profitability

This table compares Sarepta Therapeutics and Galmed Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sarepta Therapeutics -165.52% -55.37% -34.90%
Galmed Pharmaceuticals N/A -14.29% -13.83%

Insider and Institutional Ownership

95.1% of Sarepta Therapeutics shares are held by institutional investors. Comparatively, 36.8% of Galmed Pharmaceuticals shares are held by institutional investors. 6.6% of Sarepta Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Sarepta Therapeutics and Galmed Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sarepta Therapeutics $301.03 million 20.62 -$361.92 million ($5.46) -15.29
Galmed Pharmaceuticals $2.04 million 38.12 -$9.86 million ($0.54) -6.85

Galmed Pharmaceuticals has lower revenue, but higher earnings than Sarepta Therapeutics. Sarepta Therapeutics is trading at a lower price-to-earnings ratio than Galmed Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Sarepta Therapeutics and Galmed Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sarepta Therapeutics 0 1 20 0 2.95
Galmed Pharmaceuticals 0 0 5 0 3.00

Sarepta Therapeutics currently has a consensus target price of $191.35, suggesting a potential upside of 129.22%. Galmed Pharmaceuticals has a consensus target price of $32.00, suggesting a potential upside of 764.86%. Given Galmed Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Galmed Pharmaceuticals is more favorable than Sarepta Therapeutics.

Volatility & Risk

Sarepta Therapeutics has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500. Comparatively, Galmed Pharmaceuticals has a beta of 2.83, suggesting that its share price is 183% more volatile than the S&P 500.

Summary

Galmed Pharmaceuticals beats Sarepta Therapeutics on 10 of the 14 factors compared between the two stocks.

Sarepta Therapeutics Company Profile

Sarepta Therapeutics, Inc. focuses on the discovery and development of RNA-based therapeutics, gene therapy, and other genetic medicine approaches for the treatment of rare diseases. The company offers EXONDYS 51, a disease-modifying therapy for duchenne muscular dystrophy (DMD). Its products pipeline include Golodirsen, a product candidate that binds to exon 53 of dystrophin pre-mRNA, which results in exclusion or skipping of exon during mRNA processing in patients with genetic mutations; and Casimersen, a product candidate that uses phosphorodiamidate morpholino oligomer (PMO) chemistry and exon-skipping technology to skip exon 45 of the DMD gene. In addition, the company's pipeline comprise SRP-5051, a peptide conjugated PMO that binds to exon 51 of dystrophin pre-mRNA. It has collaboration agreements with Nationwide Children's Hospital to advance micro-dystrophin gene therapy program under the research and license option agreement; Galgt2, a gene therapy program for the treatment of DMD; and Neutrophin 3, a gene therapy program to treat Charcot-Marie-Tooth neuropathies. The company also has a license agreement with Lysogene to develop LYS-SAF302, a gene therapy for mucopolysaccharidosis IIIA; a license and option agreement with Lacerta to develop treatments for CNS-targeted and lysosomal storage diseases; and research collaboration and option agreement with Genethon to develop micro-dystrophin gene therapy products. In addition, it has a research agreement with Duke University to advance gene editing CRISPR/Cas9 technology for restoring dystrophin expression; a collaboration agreement with Summit (Oxford) Ltd. to commercialize products in Summit's utrophin modulator pipeline; a strategic collaboration with Paragon Bioservices; and a strategic collaboration with CENTOGENE for the identification of patients with DMD in the Middle East and North Africa region. Sarepta Therapeutics, Inc. was founded in 1980 and is headquartered in Cambridge, Massachusetts.

Galmed Pharmaceuticals Company Profile

Galmed Pharmaceuticals Ltd., a clinical-stage biopharmaceutical company, focuses on the development of therapeutics for the treatment of liver diseases. The company is develops Aramchol, an oral therapy, which is completed ARREST Phase IIb clinical study for the treatment of patients with overweight or obesity, and who are pre-diabetic or type-II-diabetic with non-alcoholic steato-hepatitis. It also evaluates Aramchol through ARRIVE Study, a proof-of-concept Phase IIa clinical trial, with HIV-associated non-alcoholic fatty liver disease and lipodystrophy. The company was founded in 2000 and is headquartered in Tel Aviv, Israel.

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