Marinus Pharmaceuticals (NASDAQ: MRNS) and Shire PLC (NASDAQ:SHPG) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitabiliy, risk and dividends.
This table compares Marinus Pharmaceuticals and Shire PLC’s net margins, return on equity and return on assets.
This is a breakdown of recent ratings and price targets for Marinus Pharmaceuticals and Shire PLC, as reported by MarketBeat.com.
Marinus Pharmaceuticals presently has a consensus target price of $3.00, indicating a potential upside of 63.93%. Shire PLC has a consensus target price of $224.90, indicating a potential upside of 34.51%. Given Marinus Pharmaceuticals’ stronger consensus rating and higher possible upside, research analysts plainly believe Marinus Pharmaceuticals is more favorable than Shire PLC.
Risk and Volatility
Marinus Pharmaceuticals has a beta of 2.15, meaning that its share price is 115% more volatile than the S&P 500. Comparatively, Shire PLC has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.
Institutional & Insider Ownership
32.7% of Marinus Pharmaceuticals shares are owned by institutional investors. Comparatively, 21.1% of Shire PLC shares are owned by institutional investors. 6.4% of Marinus Pharmaceuticals shares are owned by company insiders. Comparatively, 2.0% of Shire PLC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Shire PLC pays an annual dividend of $0.91 per share and has a dividend yield of 0.5%. Marinus Pharmaceuticals does not pay a dividend. Shire PLC pays out 123.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Earnings and Valuation
This table compares Marinus Pharmaceuticals and Shire PLC’s top-line revenue, earnings per share and valuation.
Marinus Pharmaceuticals is trading at a lower price-to-earnings ratio than Shire PLC, indicating that it is currently the more affordable of the two stocks.
About Marinus Pharmaceuticals
Marinus Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company focuses on developing and commercializing therapeutics to treat epilepsy and neuropsychiatric disorders. Its clinical-stage product candidate, ganaxolone, is a modulator being developed in various dose forms, including intravenous, oral capsule and oral liquid, intended to provide more treatment options to adult and pediatric patient populations in both acute and chronic care settings. Ganaxolone acts on the GABAA receptor, a target in the brain known for both anti seizure and anti anxiety effects through positive allosteric modulation. The Company is developing ganaxolone for multiple epilepsy and other neuropsychiatric indications, including adjunctive, or add-on, therapy for the treatment of drug-resistant focal onset seizures; status epilepticus; Fragile X Syndrome, and PCDH19 pediatric epilepsy. Marinus Pharmaceuticals, Inc. was granted orphan status for its two drugs on June 29, 2017.
About Shire PLC
Shire plc is a biotech company focused on serving people with rare diseases and other specialized conditions. The Company’s segment is engaged in research, development, licensing, manufacturing, marketing, distribution and sale of specialist medicines. It focuses its development resources on projects in various therapeutic areas (TAs), including Neuroscience, Ophthalmology, Hematology, Oncology, Immunology, Gastrointestinal (GI)/Metabolic/Endocrinology Diseases. Its Hematology products include ADVATE (Antihemophilic Factor (Recombinant)), ADYNOVATE/ADYNOVI (Antihemophilic Factor (Recombinant), PEGylated)), RIXUBIS (Coagulation Factor IX (Recombinant)), VONVENDI (von Willebrand factor (Recombinant)) and FEIBA (Anti-Inhibitor Coagulant Complex). Its Genetic Diseases products include CINRYZE (C1 esterase inhibitor (human)), FIRAZYR (icatibant), ELAPRASE (idursulfase), REPLAGAL (agalsidase alfa) and VPRIV (velaglucerase alfa).